Square and PayPal Zettle are two of the most popular no-monthly-fee card readers in the UK - both let small businesses take card payments cheaply with no contract. They look similar, but they're built for slightly different owners. Here's how they compare on fees, hardware, software and payouts, and which one to pick.
Quick verdict
Choose Square if you want the stronger free POS ecosystem - better inventory, a free online store and room to grow. Choose PayPal Zettle if you already use PayPal and want your takings to flow neatly into your PayPal balance. For most growing businesses, Square edges it; for committed PayPal sellers, Zettle is the natural fit.
Fees
Both are pay-as-you-go with no monthly fee on their standard plans. Square is a flat **1.75%** in person; Zettle is **1.75%** on card and contactless too - so on rate alone they're level. The difference is what you get around it. Run your real numbers through the fee calculator to see your all-in cost.
Hardware
Square's reader starts at £19 + VAT, with a Terminal (£149 + VAT) and full Register if you grow. Zettle's Reader 2 is around £29 + VAT, with a standalone Zettle Terminal option. Square's range scales further, which matters if you expect to add a proper till station.
POS software
This is where Square pulls ahead. Its free POS app includes solid inventory, a free online store, invoicing and loyalty, plus paid Restaurant and Retail tiers. Zettle's free app covers the basics well - items, basic inventory and reporting - but its wider ecosystem is less ambitious. If software matters, Square wins; if you only need simple payments, both are fine.
Payouts & ecosystem
Square pays out next working day (instant transfer for a fee). Zettle settles in 1–2 working days, with the bonus that funds can land in your PayPal balance - handy if you already run money through PayPal. If fast access matters more, see our roundup of same-day payout providers.
Who each one suits
- **Café / small retail / service business** → Square (see best POS for cafés and retail).
- **Existing PayPal seller** → Zettle.
- **Wants room to grow into a full till** → Square.
- **Just wants simple, cheap card payments** → either; pick by hardware preference.
FAQs
Is Square or Zettle cheaper?
They're level on rate - both 1.75% per in-person transaction with no monthly fee. Square's reader starts slightly cheaper (£19 vs ~£29 + VAT). The better value depends on whether you'll use Square's stronger free software.
Is Square better than Zettle?
For most growing businesses, yes - Square's free POS, online store and inventory are more capable. Zettle is the better choice if you're committed to PayPal and want takings in your PayPal balance.
Can I use Zettle without a PayPal account?
You sign up through PayPal and it integrates closely with your PayPal account - that integration is the main reason to choose Zettle over Square.
