A hosted payment page redirects the shopper to a Worldpay-controlled screen for the card entry itself, then sends them back to your site once it's done, along with a result, through an installation ID and a payment response URL you configure in the Worldpay merchant dashboard. It's the lower-effort option because Worldpay, not your server, handles the sensitive card data.
An iframe or direct integration keeps the payment form visually on your own checkout page while still routing the actual card data through Worldpay, which looks cleaner to a shopper but puts more integration work, and more PCI scope, on your side.
Platforms like Shopify that support Worldpay as a payment option generally wrap one of these two paths behind a simpler setup screen, which is faster to turn on but gives you less control over exactly how the response gets handled.