Which Is Better for Mobile Traders and Market Stalls?
Square and Lopay are solving different problems. Square is a business operating system that includes a card reader. Lopay is a card reader that includes a basic POS app. That distinction isn’t a feature argument. It’s the decision itself for a large share of readers.
If you’re a mobile tradesperson, market trader, or freelancer wanting card acceptance without a POS system, you’re paying a 0.76–0.96 percentage point premium per transaction for Square’s ecosystem depth.
Square wins when you need a POS system or process significant Amex volume. Model both before deciding.
Visit Lopay Visit SquareSquare vs Lopay Fees and Charges
Card Transaction Fees
Lopay’s pricing isn’t one rate. It’s a settlement-speed trade-off: the slower you’re willing to wait for your money, the less you pay per transaction.
0.79%: payouts every Thursday (Essential). Best effective rate, weekly cycle. 0.99%: next working day (Standard). The practical default for most businesses. 1.79%: within minutes, any time of day or night (Instant-to-Bank via TrueLayer). Costs more than Square’s standard rate.
Square settles next working day as standard at 1.75%, with a midnight GMT cutoff including weekends and bank holidays. Square’s instant transfer option costs 1.5% of the payout amount, with a standard daily cap of £750.
| Monthly card volume | Square 1.75% | Lopay Essential 0.79% | Lopay Standard 0.99% | Annual saving vs Square (Standard) |
|---|---|---|---|---|
| £500 | £8.75/month | £3.95/month | £4.95/month | £57/year |
| £1,000 | £17.50/month | £7.90/month | £9.90/month | £114/year |
| £3,000 | £52.50/month | £23.70/month | £29.70/month | £273/year |
| £5,000 | £87.50/month | £39.50/month | £49.50/month | £456/year |
| £8,000 | £140/month | £63.20/month | £79.20/month | £729/year |
Assumes UK consumer Visa/Mastercard. Amex and international cards change the calculation on both sides.
Monthly, Setup and Contract Costs
Neither Square nor Lopay charges a monthly fee on their base plans; both are pay-as-you-go with no setup costs. The Lopay Business Terminal is the exception, requiring a 12-month commitment at £15/month.
Other Fees to Watch
Lopay adds a 1% surcharge on Amex, corporate, and international cards on top of the base rate. Square’s payment link fee is 1.4% + 25p; Lopay’s payment links add 0.49% to the base rate. Lopay’s Instant-to-Bank payout at 1.79% is more expensive than Square’s standard 1.75% rate.
Fee Verdict: Who Costs Less
Lopay Standard (0.99%) is cheaper than Square (1.75%) for UK Visa and Mastercard transactions at every volume. The gap closes when Amex or international card volume is significant; model your card mix before deciding.
Square vs Lopay Payment Methods and Checkout Options
Cards, Wallets and Alternative Payment Methods
Both providers accept Visa, Mastercard, and American Express in-person via contactless, chip and PIN, and magnetic stripe. Lopay also supports Tap to Pay on iPhone and Android, removing hardware cost entirely for contactless-only businesses.
Checkout Experience
For remote payments: Lopay payment links carry a 0.49% surcharge on top of your base rate (1.28% on Essential, 1.48% on Standard). Square charges 1.4% + 25p for payment links. At low invoice values, Square’s flat pence fee costs more; at higher values, the percentage difference narrows.
Square also provides a virtual terminal (2.5%), a full invoicing product, and an online store builder. Lopay doesn’t have an online store or invoicing product beyond payment links and QR codes.
Methods Verdict
Lopay covers in-person card acceptance well and adds Tap to Pay; Square adds online store, invoicing, and virtual terminal for businesses that need more than a reader.
Square vs Lopay Hardware, POS and In-Person Payments
Card Readers and Terminals
The Square Reader is £19 + VAT and pairs to your phone via Bluetooth. We rate it the strongest entry-level POS hardware for new businesses.
Square also sells Terminal (£149 + VAT, standalone with built-in printer), Handheld (£169 + VAT), and Register (£699 + VAT, dual-screen countertop). All are bought outright. Instalment options exist for Terminal and above.
POS Software and Hardware Add-ons
Lopay’s Bluetooth reader (Stripe M2) is £24 + shipping when ordered through the app for your first reader, or £49 via Amazon or for subsequent readers. It pairs to your phone via Bluetooth. Lopay also offers Tap to Pay on iPhone and Android, which removes the hardware cost entirely.
The Business Terminal is Lopay’s countertop option: a Wi-Fi touchscreen device at £15/month. Note the lock-in: the terminal requires a 12-month subscription. Lopay’s “no contract” messaging applies to the reader tiers, not to the terminal.
In-Person Verdict
Square has the more complete in-person hardware range and POS software depth; Lopay is the leaner option for mobile traders who need a reader and basic app without the countertop ecosystem.
Square vs Lopay Online Payments and Integrations
Hosted Checkout, Payment Links and APIs
Square Online gives you a free e-commerce store connected to the same inventory as your reader. Lopay has no native e-commerce product.
Platform Integrations
Lopay integrates with Xero. Square integrates with Xero, QuickBooks, Wix, WooCommerce, and others. If your bookkeeping runs on Xero, both providers cover you. If you need QuickBooks, WooCommerce, or Wix integration, Square covers those; Lopay does not.
Online Verdict
We find Square the clear choice for any business selling online or needing integrations beyond Xero. Lopay has no online sales product.
Square vs Lopay Payouts, Contract Terms and Account Risk
Settlement Speed and Payout Schedule
Square settles next working day at 1.75%, midnight GMT cutoff including weekends. Lopay Standard settles next working day at 0.99%; Essential settles weekly on Thursday at 0.79%. We recommend Lopay Standard: Essential’s weekly cycle creates cashflow risk for mid-week outgoings.
Lopay’s Instant-to-Bank costs 1.79% and runs 24/7 via TrueLayer. Square instant transfers are capped at £750/day.
Contract Length and Exit Terms
Neither provider requires a contract on their base reader plans. Either can be walked away from at any time. The Lopay Business Terminal is the exception: it carries a 12-month commitment at £15/month (£180 + delivery) if you choose it.
Reserves, Holds and Account Stability
Lopay processes payments via Stripe Payments UK (FCA-authorised), which provides regulated infrastructure. Square has operated in the UK since 2017 and carries the account-hold risks typical of large payment processors at scale.
Square vs Lopay Customer Reviews and Reputation
Trustpilot and Independent Review Themes
Lopay launched in January 2022 and has built a strong reputation among mobile traders and sole traders for straightforward pricing and reliable app performance. It is seed-funded rather than publicly listed.
The processing infrastructure runs on Stripe Payments UK (FCA-authorised), which provides the underlying reliability.
Square has a long UK track record since its 2017 launch. On Trustpilot UK, Square scores mixed reviews with consistent praise for the POS software and complaints centred on account risk holds and customer service response times. These patterns are typical of large payment processors.
Support Channels and Response Times
Square offers phone support during UK business hours plus in-app chat on the free plan. Lopay provides in-app support; response times are generally praised by mobile traders for straightforward issues.
Reputation Verdict
We rate Lopay well on simplicity and transparent pricing for its stage. Square carries the typical mixed Trustpilot profile of a large, established payment processor.
Square vs Lopay for Amex and International Card Volume
We find the Amex and international card picture is the most important nuance in this comparison.
The Amex and international card picture is the most important nuance in this comparison.
- Amex, Square wins: Square charges 1.75% on Amex, the same flat rate as every other card. Lopay adds 1%, making Amex 1.99% on Standard. For restaurants, professional services, or corporate-facing businesses where Amex covers 15–20% of transactions, this closes most of the headline gap.
- Non-UK cards, Lopay wins: A tourist-facing business with 30% non-UK card transactions pays an effective Square rate of around 2.20%. On Lopay Standard with the same card mix, the effective rate is around 1.29%. Lopay still wins on total cost even with significant international volume.
Downsides of Square and Lopay
Downsides of Square
1.75% is expensive compared to Lopay for businesses that only need card acceptance. At £8,000/month, Square costs £140 in transaction fees; Lopay Standard costs £79.20. Square’s instant transfer fee (1.5%) is steep for businesses that regularly need same-day funds.
Downsides of Lopay
Lopay’s POS is basic. For any hospitality or retail operator that needs table management, modifiers, or kitchen display integration, Lopay will not replace a proper EPOS.
The 1% Amex surcharge closes the pricing gap for Amex-heavy businesses. The Business Terminal’s 12-month lock-in is easy to overlook in the sign-up flow.
Alternatives to Square and Lopay
If neither fits, consider:
- SumUp, 1.69% flat, £15 reader. Cheaper hardware, simpler for solo traders.
- Tide Card Reader, 0.79% + 3p in-person on the Sell plan. Competitive if you already bank with Tide.
- Dojo Go, Custom rates from around 1.4% for businesses processing above £5,000/month.
- Zettle by PayPal, 1.75%, £29 reader, instant settlement to PayPal balance.
Final Verdict: Square or Lopay?
Lopay Standard (0.99%, next-day) for mobile traders, market stalls, and sole traders who need card acceptance and nothing more. The saving over Square is real at every volume level and doesn’t require any trade-off if POS software depth isn’t needed.
Square (1.75%, free plan) for any business that needs a till system alongside the reader. Cafés, restaurants, and retailers with a meaningful product catalogue will hit Lopay’s POS ceiling within the first busy service. Square’s free app handles that use case at no extra cost.
Model your Amex and international card volume before deciding. The 1% Amex surcharge on Lopay can close most of the fee gap for the right business type.
Frequently Asked Questions
Is Lopay cheaper than Square?
For most UK small businesses taking UK consumer Visa and Mastercard, yes. Lopay Standard at 0.99% saves £273 a year versus Square at 1.75% on £3,000/month in card sales. The gap narrows with Amex volume: Square charges no Amex surcharge, but Lopay adds 1%.
Does Lopay have a POS system?
Lopay includes a free POS app with inventory management, unlimited team members, and sales reports. It handles basic checkout and stock tracking but not Square’s depth of table management or kitchen display integration.
Is Lopay safe to use?
Lopay is powered by Stripe Payments UK, which is authorised by the Financial Conduct Authority. Lopay Ltd is incorporated in the UK (company number 13384279).
Can I use Lopay without a card reader?
Yes. Lopay’s Tap to Pay feature turns a compatible iPhone or Android into a card reader without additional hardware.
Does Square work without a monthly fee?
Square’s free plan has no monthly fee. You pay 1.75% per in-person transaction. The Retail Plus plan at £49/month reduces your in-person rate to 1.6% and adds advanced inventory tools.
How we reviewed Square vs Lopay
Ranking criteria. We compared Square and Lopay 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.