Square vs Zettle by PayPal Payment Processing
Same 1.75% in-person rate on both. Square wins on POS depth and online rates. Zettle wins if PayPal is already your payment hub.
- Square: £19 reader, 1.75% flat, free POS with tables and modifiers.
- Zettle: £29 reader, same 1.75% rate, settles to PayPal in minutes.
- Square wins on POS depth; Zettle wins for PayPal-first businesses.
Square vs Zettle by PayPal at a Glance
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Square and Zettle charge the same in-person rate: 1.75% flat. Hardware is similarly priced. The decision hinges on two things: whether you need a POS app beyond basic checkout, and whether instant settlement into PayPal is worth more to you than a richer software stack.
We rate this as a genuinely close call for low-volume sole traders with no online sales.
| Provider | Hardware | Transaction fee | Monthly fee | Contract | Settlement | Action |
|---|---|---|---|---|---|---|
| £19 +VAT | 1.75% flat (incl. Amex) | £0 | No lock-in | 1–2 working days | Visit → |
 | £29 excl VAT | 1.75% (card-present, incl. Amex) | £0 | No contract | Minutes to PayPal balance | Visit → |
Fees verified against provider websites, May 2026. Zettle card-present rate matches Square at 1.75%. Online and keyed transactions differ. Always confirm current terms before signing.
Square Reader
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.
Choose Square 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 SquareChoose Zettle 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
Both providers charge 1.75% on in-person card transactions, Amex included. There is no monthly fee on either free plan. The rates diverge on non-standard transactions.
| 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.
For a business that takes a mix of in-person and online payments, Square’s 1.4% + 25p online rate beats Zettle’s 2.5% consistently above around £8 per online transaction.
We verified both rate schedules against provider websites in May 2026.
Square vs Zettle by PayPal Payment Methods and Checkout Options
Both providers accept Visa, Mastercard, and American Express in-person at the same 1.75% flat rate, with no Amex surcharge on either provider.
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.
Square supports Apple Pay and Google Pay in-person and online. Zettle supports Apple Pay and Google Pay in-person. Zettle also enables PayPal Wallet acceptance in-store, which Square does not offer natively.
We confirmed all checkout options against both providers’ published documentation.
Square vs Zettle by PayPal Hardware, POS and In-Person Payments
Square hardware
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.
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.
We rate Square’s hardware upgrade path as a genuine advantage for businesses expecting to grow beyond a single reader.
Zettle hardware
Zettle Reader 2 is £29 for the first unit. Both connect to a phone over Bluetooth. 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.
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.
Square vs Zettle by PayPal Online Payments and Integrations
Both platforms sync with accounting software. Square integrates with Xero, QuickBooks, and FreeAgent. Zettle integrates with Xero, QuickBooks, and Sage.
Square’s reporting goes deeper: product-level performance, employee sales, shift reports, and multi-location roll-ups. For a sole trader, the difference is invisible. For a business with three staff and two locations, Square’s reporting starts earning its edge.
We rate Square as the stronger platform for businesses managing staff shifts or multiple locations.
Square Online provides a native e-commerce store at no extra cost. Zettle does not have a native online sales product.
Square vs Zettle by PayPal Payouts, Contract Terms and Account Risk
Neither provider requires a contract. Both can be cancelled at any time with no exit fee.
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.
If PayPal places a limitation on your account — for any reason — it directly affects access to your Zettle settlement. This is the primary account risk for Zettle users that Square does not share.
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
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
Square downsides
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.
Zettle by PayPal downsides
Zettle’s settlement into a PayPal balance means a PayPal account restriction directly affects access to your card takings. 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 the same in-person rate (1.75%). Square is cheaper for online payments (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 the same.
Does Zettle have a free POS?
Yes. Zettle’s POS software is permanently free. It covers products, discounts, and basic reports. 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 has a lock-in contract 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 — no Amex surcharge, matching Square.
We compiled this comparison by researching Square and Zettle by PayPal on their primary websites. Transaction rates, hardware costs, and POS features verified May 2026.
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