Which Is Better for Small Retailers in the PayPal Ecosystem?
The in-person rate is identical. The decision is about ecosystem fit and POS depth, not transaction cost.
Square wins if you need a proper POS app beyond a basic till. Square’s free POS handles table management, modifiers, open tabs, split bills, appointment booking (for service businesses), and inventory tracking across multiple locations.
Zettle’s app handles simple retail and counter service well, but does not replicate Square’s hospitality and multi-location feature depth at the free tier.
Square also wins if you sell online. Square Online gives you a free e-commerce store connected to the same inventory as your reader, a genuine omnichannel setup. Zettle does not have a native e-commerce product. Square’s 1.4% + 25p online rate also beats Zettle’s 2.5% for online transactions.
Visit SquareZettle wins if you’re already inside the PayPal ecosystem. Zettle settles to your PayPal balance in minutes, not working days. If you already collect online payments via PayPal, Zettle is the natural card reader, one balance, one provider.
Not right if you want settlement direct to your business bank account without a PayPal step. Moving money from PayPal to a bank adds a transfer that may take an additional day.
Visit ZettleSquare vs Zettle by PayPal Fees and Charges
Card Transaction Fees
Both providers charge 1.75% on in-person card transactions, Amex included. There is no monthly fee on either free plan. For a purely in-person business, both providers cost the same.
Monthly, Setup and Contract Costs
Neither Square nor Zettle by PayPal charges a monthly fee, setup fee, or exit fee on the standard plan. Both are genuinely no-commitment providers.
Other Fees to Watch
The rates diverge on non-standard transactions: Square charges 1.4% + 25p for online UK-card payments; Zettle charges 2.5%. Keyed-in transactions are 2.5% on Square and 2.75% on Zettle. We verified both rate schedules in May 2026.
Fee Verdict: Who Costs Less
| Transaction type | Square | Zettle by PayPal |
|---|---|---|
| In-person (card-present) | 1.75% | 1.75% |
| Online / payment link | 1.4% + 25p | 2.5% |
| Keyed-in (manual entry) | 2.5% | 2.75% |
| Hardware cost | £19 +VAT | £29 excl VAT |
| Monthly fee | £0 | £0 |
Fees verified May 2026. For a purely in-person business, both providers cost the same.
Square vs Zettle by PayPal Payment Methods and Checkout Options
Cards, Wallets and Alternative Payment Methods
Both providers accept Visa, Mastercard, and American Express in-person at the same 1.75% flat rate, with no Amex surcharge on either provider. Both support Apple Pay and Google Pay in-person. Zettle also enables PayPal Wallet acceptance in-store, which Square does not offer natively.
Checkout Experience
For online payments, Square provides a hosted checkout, embeddable payment form, and virtual terminal. Zettle’s online offering is limited to payment links and QR codes at 2.5%; there is no native e-commerce product or embedded checkout API.
We confirmed all checkout options against both providers published documentation.
Methods Verdict
For in-person payments the two providers are equal. Square wins on online payment flexibility and rate. If your customers regularly pay with PayPal Wallet in-store, Zettle is the only option that supports it natively.
Square vs Zettle by PayPal Hardware, POS and In-Person Payments
Card Readers and Terminals
Square Reader is £19. Square also offers Terminal (£149, standalone touchscreen with printer) and Register (£599 + £179 display, full countertop POS). For a growing business that wants to upgrade hardware without changing provider, Square has more headroom.
Zettle Reader 2 is £29 for the first unit. Zettle’s terminal range is thinner, primarily the reader plus a basic stand. There is no standalone countertop equivalent to Square Terminal in Zettle’s hardware range.
POS Software and Hardware Add-ons
Square’s free POS app adds table mapping, kitchen display integration, appointment scheduling, team permissions, and a loyalty programme. The gap matters most for restaurants, salons, and multi-staff businesses.
Zettle’s POS handles products, discounts, cash tracking, and basic sales reporting. For a market trader or a mobile hairdresser, both apps do the job. For a busy restaurant or a retailer needing complex order customisation, Square’s free tier goes further.
In-Person Verdict
We rate Square’s hardware upgrade path as a genuine advantage for businesses expecting to grow beyond a single reader. Zettle covers simple counter service at a £10 hardware premium over Square.
Square vs Zettle by PayPal Online Payments and Integrations
Hosted Checkout, Payment Links and APIs
Square Online provides a native e-commerce store at no extra cost. Zettle does not have a native online sales product. For a business that needs both in-person and online payments under one account, Square is the simpler path.
Platform Integrations
Both platforms sync with accounting software. Square integrates with Xero, QuickBooks, and FreeAgent. Zettle integrates with Xero, QuickBooks, and Sage.
Square’s reporting covers product-level performance, employee sales, shift reports, and multi-location roll-ups. We rate Square as the stronger platform for businesses managing staff shifts or multiple locations.
Online Verdict
Square is the stronger online platform in every measurable dimension: rate, native store, API depth, and reporting. If you already sell through Shopify or have a separate online store, Zettle connects to it; if you’re starting from scratch, Square is the simpler path.
Square vs Zettle by PayPal Payouts, Contract Terms and Account Risk
Settlement Speed and Payout Schedule
Square settles to your linked UK business bank account within 1–2 working days. Instant transfers are available at 1.75% of the payout amount.
Zettle settles to your PayPal balance in minutes. Moving that balance to a bank account via PayPal takes an additional step and may take up to one working day.
Contract Length and Exit Terms
Neither provider requires a contract. Both can be cancelled at any time with no exit fee.
Reserves, Holds and Account Stability
If PayPal places a limitation on your account, for any reason, it directly affects access to your Zettle settlement. We flag this settlement dependency as the most significant operational risk for Zettle users compared to Square.
Square vs Zettle by PayPal Customer Reviews and Reputation
Trustpilot and Independent Review Themes
Square has a long UK track record since launching in 2017. Trustpilot UK reviews reflect consistent praise for the POS software and complaints centred on account risk holds.
Support Channels and Response Times
Zettle by PayPal has operated in the UK market since 2012 (originally as iZettle). User reviews on Trustpilot UK are generally positive for hardware reliability. Negative reviews focus on customer service response times and occasional PayPal account restrictions affecting Zettle settlement.
Reputation Verdict
Square has a long UK track record since launching in 2017. Trustpilot UK reviews reflect consistent praise for the POS software and complaints centred on account risk holds. These patterns are typical of large payment processors.
Zettle by PayPal is backed by PayPal’s infrastructure and has operated in the UK market since 2012 (originally as iZettle). User reviews on Trustpilot UK are generally positive for hardware reliability.
Negative reviews focus on customer service response times and occasional PayPal account restrictions affecting Zettle settlement. As Zettle settles into a PayPal balance, any PayPal account limitation directly affects access to Zettle funds.
Square vs Zettle by PayPal for POS Software Depth
POS software depth is the decisive differentiator between Square and Zettle when the in-person rate is identical.
Square’s free POS includes: item catalogue with modifiers and variants, table management, kitchen display integration, open tabs and split bills, appointment booking, staff permissions, and a loyalty programme. This makes it a complete EPOS for restaurants, cafes, salons, and retailers.
Zettle’s POS includes: product catalogue, discounts, cash tracking, and basic sales reporting. It covers counter service and simple retail. It does not have table management, modifiers, kitchen display integration, or appointment scheduling.
For a mobile trader selling from a van or a sole trader with a straightforward checkout, the POS difference is irrelevant. For a cafe operator managing tables and orders, Square’s free tier is meaningfully superior.
We found Square’s free POS depth meaningfully greater for hospitality and multi-staff businesses.
Downsides of Square and Zettle by PayPal
Downsides of Square
Square’s 1.75% flat rate becomes expensive at high volume. Businesses processing more than £200,000 a year should negotiate a custom rate or consider alternatives.
Account holds are a recurring complaint on Trustpilot, though this affects most large processors. International card acceptance at 3.25% is expensive for tourist-facing businesses.
Downsides of Zettle by PayPal
The online rate (2.5%) is significantly higher than Square’s (1.4% + 25p).
Hardware is £10 more expensive than Square for the first reader. The POS software does not match Square’s depth for hospitality or multi-location businesses.
Alternatives to Square and Zettle by PayPal
If neither Square nor Zettle fits your requirements:
- SumUp, 1.69% flat, £15 reader. Cheaper rate and hardware than Zettle; simpler than both.
- Lopay, 0.99% next-day, £24 reader. Significantly cheaper for businesses without Amex volume.
- myPOS Go 2, £29, standalone 4G, 1.10% + 7p on Visa/MC. Better for outdoor and mobile trading.
- Dojo Go, Standalone 4G terminal with custom rates for businesses above £5,000/month.
Final Verdict: Square or Zettle by PayPal?
Square for businesses that need hospitality POS features, sell online, or want settlement direct to a business bank account. The free POS, £19 reader, and 1.4% + 25p online rate make Square the more versatile choice for any business with a meaningful online or multi-function till requirement.
Zettle by PayPal for businesses already using PayPal for online payments who want in-person card acceptance under the same provider.
The instant PayPal balance settlement is a genuine advantage if PayPal is your primary payment method. The POS software is sufficient for simple counter service.
For a purely in-person business with a simple checkout and no online sales, both providers cost exactly the same. The £10 hardware saving from Square and the deeper POS app are the tiebreakers in that scenario.
Frequently Asked Questions
Is Square or Zettle cheaper?
They charge you the same in-person rate (1.75%). Square is cheaper if you also sell online (1.4% + 25p vs Zettle’s 2.5%). Hardware is £10 cheaper on Square. For a purely in-person business with no online component, they cost you the same.
Does Zettle have a free POS?
Yes. Zettle’s POS software is permanently free. It covers products, discounts, and basic reports for you. Square’s POS is also free and covers a wider feature set including table management and appointments.
Can I switch from Zettle to Square?
Yes, with no penalty. Neither provider locks you in on the base plan. You will need to buy new hardware (£19 for a Square Reader) and move your product catalogue, but there is no exit fee and no notice period.
Does Zettle accept Amex?
Yes. Zettle processes American Express at the same 1.75% flat rate as Visa and Mastercard, with no Amex surcharge. Square matches this. If your customers pay you with Amex regularly, you will not pay a premium on either provider.
How we reviewed Square vs Paypal Pos
Ranking criteria. We compared Square and Paypal Pos on pricing, fees, feature set, eligibility, and contract terms. We also verified regulatory status and deposit protection where applicable.
Data sources. Every provider’s pricing page, terms, and product docs were checked directly in May 2026. No comparison sites, no press releases, no affiliate material. FCA register cross-checked for regulatory status.
Update cadence. We re-verify every provider on this page at least monthly, and whenever a provider changes pricing, eligibility, or terms. The verification date on the page reflects the most recent full review. Some links on this page are affiliate links, see our editorial policy.