Zettle Fees UK (2026): Complete Pricing Guide for UK Businesses

If you’re considering Zettle for your business, one of the first questions you’ll probably ask is: how much does Zettle cost?

Zettle has recently been rebranded as PayPal Point of Sale (PayPal POS), but many UK businesses still know the service by its former name. The platform offers card readers, point-of-sale software, payment links and invoicing tools under a straightforward pay-as-you-go pricing model.

In this guide, we’ll explain exactly what Zettle fees UK businesses can expect, including transaction fees, card reader prices, subscription costs, online payment charges and any additional fees you should be aware of before signing up.

If you’re comparing providers, you may also find our guides to Best Card Payment Machines UK, Square vs SumUp UK, SumUp vs Zettle UK, Cheapest Card Readers UK, Card Machine Fees Explained, SumUp Fees UK, Square Fees UK and Dojo Fees UK helpful.

What Are Zettle Fees UK?

Zettle, now known as PayPal Point of Sale, is one of the UK’s most popular card payment solutions for small businesses.

Unlike providers that offer multiple pricing tiers, complicated contracts or industry-specific subscription packages, Zettle focuses on simplicity. For most businesses, the only ongoing cost is a transaction fee when a customer pays by card.

Zettle fees are the charges you pay when accepting payments through the PayPal POS ecosystem. Depending on how you take payments, these costs can include:

• Transaction fees
• Hardware costs
• Payment link fees
• Invoice fees

For most businesses, transaction fees will represent the largest ongoing expense.

One of Zettle’s biggest strengths is that there are no mandatory monthly software subscriptions. The core PayPal POS app is included without a monthly fee, making it particularly attractive to:

• Sole traders
• Market traders
• Mobile businesses
• Tradespeople
• Small retailers
• New businesses

Businesses can start accepting card payments with minimal upfront costs and without committing to long-term contracts.

For many small business owners, this straightforward approach is one of the main reasons Zettle remains a popular alternative to both SumUp and Square.

Zettle Transaction Fees

Transaction fees are the primary ongoing cost of using Zettle.

Whenever a customer pays by card, Zettle deducts a percentage of the transaction before transferring the remaining funds to your account.

Unlike some traditional merchant account providers, you don’t need to negotiate rates or commit to long contracts before getting started.

Impact on Profit Margins

Transaction fees can seem small when viewed individually, but they become more significant as card sales increase.

For example:

If your business processes £2,000 per month in card payments:

1.75% of £2,000 = £35 per month

At £5,000 per month:

1.75% of £5,000 = £87.50 per month

At £10,000 per month:

1.75% of £10,000 = £175 per month

📱 Viewing on mobile? Swipe left and right to see the full table.

Monthly Card Sales	Estimated Fee at 1.75%
£2,000	£35.00
£5,000	£87.50
£10,000	£175.00
£20,000	£350.00

As payment volumes grow, processing fees become a more important business expense.

Zettle Hardware Costs

Zettle keeps its hardware range deliberately simple.

Unlike Square, which offers multiple point-of-sale devices and industry-specific hardware options, PayPal POS focuses on a small number of products designed to meet the needs of most small businesses.

For many business owners, this simplicity makes choosing hardware much easier.

Whether you’re a sole trader taking occasional payments or a retail business looking for a more professional checkout setup, Zettle offers a suitable option.

Tap to Pay

Tap to Pay allows compatible smartphones to accept contactless card payments without requiring dedicated hardware.

For businesses just getting started, this can be the cheapest way to begin accepting card payments because there is no separate card reader to purchase.

Tap to Pay can be particularly attractive for:

• Sole traders
• Mobile businesses
• Tradespeople
• Start-ups
• Occasional sellers

The lack of upfront hardware costs helps keep initial investment to a minimum.

PayPal Reader

PayPal Reader is Zettle’s primary card reader and will be the most popular choice for many small businesses.

The compact device connects wirelessly and accepts:

• Contactless payments
• Chip and PIN payments
• Apple Pay
• Google Pay

PayPal Reader is particularly suitable for:

• Market traders
• Tradespeople
• Mobile service providers
• Small retailers
• Sole traders

Its relatively low upfront cost makes it one of the more affordable ways to begin accepting card payments in the UK.

PayPal Terminal

PayPal Terminal is a standalone payment device with a touchscreen and built-in functionality that removes the need for a separate smartphone or tablet during transactions.

It is designed for businesses wanting a more professional payment experience.

PayPal Terminal is best suited to:

• Retail shops
• Cafés
• Counter-service businesses
• Hospitality venues
• Growing businesses

For many businesses, Terminal provides a good balance between affordability and convenience.

Store Kits and Accessories

Businesses requiring a more complete checkout setup can also purchase PayPal Store Kits that combine readers, tablet stands and other accessories.

Optional accessories such as docks, printers, barcode scanners and charging equipment are also available at additional cost.

However, most small businesses can start taking card payments using either PayPal Reader or Tap to Pay without purchasing any additional equipment.

Subscription Plans

One of Zettle’s biggest advantages is its straightforward pricing structure.

Unlike Square, which offers multiple software subscriptions, or some traditional providers that charge monthly account fees, PayPal POS includes its core software without a recurring monthly charge.

PayPal POS

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Plan	Monthly Cost
PayPal POS	£0

The free plan includes:

• POS software
• Product management
• Inventory tracking
• Sales reporting
• Staff access controls
• Customer management tools

For most small businesses, these features will be sufficient without requiring any additional subscriptions.

This makes Zettle particularly attractive for businesses that want predictable costs and minimal complexity.

Integrations

Businesses requiring additional functionality can connect PayPal POS with a range of third-party services, including:

• Accounting software
• Ecommerce platforms
• Online stores
• Specialist POS systems

Some of these external services may charge their own subscription fees.

However, these costs are separate from PayPal POS itself and are not required to use the core payment system.

Custom Pricing

Larger businesses processing significant transaction volumes may be able to access bespoke pricing arrangements.

PayPal does not publish these rates publicly.

Businesses with substantial annual card turnover may wish to contact PayPal directly to discuss custom pricing options.

Online Payment Fees

Zettle charges different fees depending on how payments are accepted.

📱 Viewing on mobile? Swipe left and right to see the full table.

Payment Type	Fee
In-person payments	1.75%
Payment Links	2.5%
Invoices	2.5%
Manual card entry	2.5%

Businesses selling remotely should be aware that online and manually entered payments attract higher fees than in-person transactions.

This reflects the increased risk associated with card-not-present payments.

For businesses that primarily sell face-to-face, the standard 1.75% transaction fee will usually represent the majority of payment processing costs.

Additional Costs and Charges

Zettle’s pricing is generally transparent, but there are still a few costs worth understanding before signing up.

Hardware Purchases

While there are no setup fees, businesses purchasing PayPal Reader or PayPal Terminal will need to factor hardware costs into their budget.

For many businesses, this is the largest upfront expense.

Payment Link and Invoice Fees

Businesses accepting payments remotely via payment links or invoices will pay 2.5% per transaction.

This is higher than the standard in-person transaction fee.

Third-Party Software

Businesses using external accounting, ecommerce or POS integrations may incur additional subscription costs from those providers.

These fees are separate from PayPal POS.

Chargebacks

As with all payment providers, chargeback disputes can occur.

Businesses should ensure they keep appropriate transaction records and follow best practices when accepting payments.

For most small businesses, however, the main ongoing cost remains the standard transaction fee.

Zettle vs SumUp

For many UK businesses, the most direct comparison is between Zettle and SumUp.

Both providers focus on:

• Simple pricing
• No contracts
• Low-cost hardware
• Small business users

However, there are some important differences.

📱 Viewing on mobile? Swipe left and right to see the full table.

Provider	Standard Fee	Monthly Fee
Zettle	1.75%	£0
SumUp	1.69%	£0

SumUp’s standard transaction fee is slightly lower.

However, the difference is relatively small.

For example, on £10,000 of monthly card sales:

• SumUp fee = approximately £169
• Zettle fee = approximately £175

Difference:

Around £6 per month

Many businesses will consider this difference negligible when choosing between providers.

The decision often comes down to priorities:

Choose Zettle If:

• You already use PayPal for business payments
• You want strong PayPal integration
• You prefer very simple pricing
• You value brand familiarity

Choose SumUp If:

• Lowest possible fees are important
• You want access to reduced-rate programmes
• You prefer SumUp’s hardware ecosystem

If you’re comparing alternatives, see our complete SumUp Fees UK and Square Fees UK guides for a detailed breakdown of pricing, hardware costs and monthly charges.

Monthly Cost Examples

The amount you pay with Zettle depends almost entirely on how much you process through card payments.

Most businesses using PayPal POS only pay transaction fees when they take a payment.

The examples below assume the standard 1.75% in-person transaction fee.

Who Is Zettle Best For?

One of Zettle’s biggest strengths is its simplicity.

Unlike some payment providers that offer multiple software packages, industry-specific plans and complex pricing structures, Zettle focuses on making card payments easy to understand and easy to use.

This makes it particularly attractive to smaller businesses that want straightforward pricing and minimal administration.

Sole Traders

Zettle is an excellent option for sole traders.

There are no monthly fees, no setup costs and no long-term contracts. Businesses only pay transaction fees when they take a payment.

Combined with Tap to Pay and the low-cost PayPal Reader, this makes Zettle one of the easiest ways for self-employed professionals to start accepting card payments.

Typical users include:

• Tradespeople
• Consultants
• Freelancers
• Mobile service providers

For many sole traders, simplicity is more important than advanced business software, making Zettle a strong fit.

Market Traders

Market traders often need a payment solution that is portable, affordable and quick to set up.

PayPal Reader is particularly well suited to:

• Market stalls
• Pop-up shops
• Craft businesses
• Seasonal traders

The ability to accept contactless payments, Apple Pay and Google Pay can help increase sales while reducing reliance on cash.

The absence of monthly fees is also attractive for businesses with fluctuating sales volumes.

Retail Shops

Zettle works well for many independent retailers.

The included POS software provides basic inventory management, reporting and product management features without requiring a separate subscription.

For smaller retailers, this may provide everything needed to manage day-to-day sales.

Businesses wanting a more professional checkout experience may prefer PayPal Terminal or one of the available store kit packages.

Growing Businesses

As businesses grow, payment costs become increasingly important.

At lower volumes, Zettle’s simplicity is often a major advantage.

However, businesses processing substantial monthly card turnover may eventually wish to compare:

• Custom pricing options
• Traditional merchant accounts
• Alternative providers

This is particularly true when annual card sales begin moving well into six figures.

While Zettle can certainly support growing businesses, it is generally strongest in the small business and SME market.

Zettle vs Other Providers

When comparing card payment providers, fees are only part of the overall picture.

Different providers appeal to different types of businesses.

Traditional Merchant Accounts

Traditional providers such as Worldpay, Barclaycard Payments, Elavon and Lloyds Cardnet can sometimes offer lower transaction rates than Zettle.

However, these providers often involve:

• Monthly account fees
• Longer contracts
• More complex pricing
• Minimum monthly charges
• Additional administration

For many small businesses, the simplicity and flexibility of Zettle outweigh the potential savings offered by traditional merchant accounts.

Is Zettle Good Value?

Overall, Zettle offers good value for many UK small businesses.

Its biggest strength is not necessarily having the lowest transaction fee.

Instead, it combines:

• Simple pricing
• No monthly fees
• Affordable hardware
• PayPal integration
• Easy setup

into a package that many small businesses find easy to understand and manage.

Businesses that process relatively modest card volumes may find Zettle particularly attractive because there are no ongoing subscription costs to worry about.

On the other hand, businesses focused solely on achieving the absolute lowest transaction fees may wish to compare alternatives such as SumUp or explore bespoke pricing from traditional merchant account providers.

Ultimately, Zettle’s value comes from convenience and simplicity rather than aggressive discount pricing.

For many sole traders, market traders and independent retailers, that simplicity can be worth far more than saving a few pounds per month in transaction fees.

Overall, Zettle remains one of the most straightforward card payment solutions available to UK businesses in 2026.

Looking at alternatives? See our SumUp vs Zettle UK comparison for a side-by-side review of fees, payment devices, software and overall value.

Frequently Asked Questions