Square vs Zettle UK (2026): Which Card Reader Is Better?

Square vs Zettle UK is a comparison many small business owners make when choosing a card payment provider. Both providers offer simple pay-as-you-go card payment solutions with no long-term contracts, no monthly fee required to get started and flat-rate transaction pricing.

At first glance, they appear remarkably similar.

Both charge 1.75% for in-person card payments. Both offer card readers, payment terminals and Tap to Pay functionality. Both provide free point-of-sale software and are designed to help small businesses start accepting card payments quickly.

However, there are some important differences.

While Zettle (now part of PayPal Point of Sale) focuses on simplicity and PayPal integration, Square has developed one of the most comprehensive payment and business management ecosystems available to UK small businesses.

For businesses that simply need a straightforward card reader, there is little to separate the two providers. For businesses that want advanced retail tools, hospitality features or room to grow, the comparison becomes much more interesting.

In this guide, we’ll compare fees, hardware, software, payouts and overall value to help you decide which provider is the better fit for your business.

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

Square vs Zettle UK Comparison Table

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

Feature	Square	Zettle
In-person transaction fee	1.75%	1.75%
Best for	Growing businesses	Simplicity and PayPal users
Monthly fee required	No	No
Long-term contract	No	No
Tap to Pay	Yes	Yes
Entry-level card reader	Square Reader	PayPal Reader
Payment terminal	Square Terminal	PayPal Terminal
Advanced retail POS	Yes	Limited
Hospitality POS tools	Yes	Limited
Appointment management	Yes	No
Inventory management	Yes	Yes
Online payments	Yes	Yes
PayPal integration	No	Yes

Pricing last checked: June 2026. Fees and hardware prices are based on publicly available UK provider pricing at the time of writing. Provider prices can change, so always confirm the latest details directly before signing up.

Which Is Cheaper?

Unlike many provider comparisons, pricing is not the main differentiator here.

Both Square and Zettle charge a standard transaction fee of 1.75% for in-person card payments.

That means a £100 card transaction costs exactly the same with either provider:

• Square fee: £1.75
• Zettle fee: £1.75

Neither provider requires a monthly subscription to start accepting card payments, and both operate primarily on a pay-as-you-go basis.

For many small businesses, this means pricing alone is unlikely to determine which provider they choose.

Instead, factors such as hardware, software and business requirements are likely to have a much greater influence on the final decision.

Fees Comparison

Although both providers use broadly similar pricing models, it’s still worth understanding how their fee structures compare.

In-Person Card Payments

Square charges:

1.75%

for card-present transactions including:

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

Zettle also charges:

1.75%

for card-present transactions including:

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

For businesses accepting payments face-to-face, there is effectively no pricing advantage either way.

Online Payments

Both providers support online and remote payments.

Square offers:

• Online Checkout
• Online Store
• Payment Links
• Subscription payments
• Invoices

Online payments start from 1.4% + 25p for UK cards, with different rates applying depending on payment type.

Zettle offers:

• Payment Links
• Invoices
• Ecommerce integrations
• PayPal Checkout compatibility

Payment Links and invoices are typically charged at 2.5%.

For businesses that rely heavily on online sales, Square’s online payment ecosystem is more developed. However, for businesses primarily accepting in-person payments, this may not be a major consideration.

Which Provider Offers Better Value on Fees?

Looking purely at transaction fees, neither provider has a meaningful advantage.

Both offer:

• Flat-rate pricing
• No monthly fee required
• No long-term contract
• Simple onboarding

The comparison therefore comes down to what you receive alongside those fees.

Hardware Comparison

Both Square and Zettle offer modern payment hardware designed for small businesses, but they take slightly different approaches.

For businesses that only need a simple card reader, there is little to separate the two providers. However, as hardware requirements become more sophisticated, Square’s broader ecosystem becomes increasingly important.

Entry-Level Options

Both providers offer Tap to Pay, allowing businesses to accept contactless payments directly on a compatible smartphone without purchasing additional hardware.

For businesses just starting out, this can be the cheapest way to begin accepting card payments.

Both providers also offer dedicated card readers.

Square Reader is designed for:

• Sole traders
• Market traders
• Mobile businesses
• Occasional sellers

PayPal Reader serves a very similar purpose and is aimed at:

• Sole traders
• Market traders
• Tradespeople
• Small businesses

For many businesses, either device will comfortably handle everyday card payments.

Payment Terminals

As businesses grow, they often want a dedicated payment device rather than relying on a smartphone and reader combination.

Both providers offer all-in-one payment terminals:

Square Terminal

• Touchscreen device
• Built-in receipt printer
• Portable design
• Suitable for retail and hospitality

PayPal Terminal

• Dedicated payment terminal
• Suitable for retail counters
• Designed for growing businesses
• More traditional payment terminal experience

For many retailers and cafés, both options will be perfectly capable of handling day-to-day transactions.

Hardware for Growing Businesses

This is where the differences become more noticeable.

Square’s hardware range extends well beyond simple card readers and payment terminals.

Businesses can also choose from:

• Square Stand
• Square Handheld
• Square Register
• Square Kiosk

This allows businesses to create setups tailored to specific environments such as:

• Retail stores
• Restaurants
• Cafés
• Hospitality venues
• Multi-location businesses

Zettle offers StoreKit solutions that combine hardware into retail-focused setups, but the overall hardware ecosystem remains smaller.

Which Hardware Is Better?

For businesses that simply need a card reader or payment terminal, there is little practical difference between the two providers.

However, businesses that require more specialised hardware or expect their requirements to evolve over time will generally find more options within the Square ecosystem.

Software & Features

For many businesses, software becomes more important than hardware over time.

A card reader processes payments, but the software behind it can influence stock control, customer management, reporting, online sales and operational efficiency.

This is arguably the biggest difference between Square and Zettle.

Simplicity vs Capability

This comparison is not really about which software is “good” and which software is “bad”.

Both platforms are capable.

The question is whether you want simplicity or flexibility.

Zettle focuses on:

• Simplicity
• Ease of use
• Core POS functionality
• PayPal integration

Square focuses on:

• Business management
• Industry-specific tools
• Scalability
• Advanced reporting
• Omnichannel selling

For businesses that never intend to move beyond a basic setup, Zettle’s simpler approach may actually be appealing.

For businesses expecting to grow, Square’s additional capabilities are difficult to ignore.

Payouts & Payments

Receiving funds quickly and managing payments efficiently is an important consideration for any business.

Fortunately, both providers perform well in this area.

Square Payments

Square provides a broad range of payment options including:

• In-person payments
• Online Checkout
• Online Store
• Payment Links
• Invoices
• Subscription payments

Businesses can manage transactions through a central dashboard and monitor sales activity across multiple channels.

For businesses selling both online and in person, this creates a highly integrated payment ecosystem.

Zettle Payments

Zettle also supports:

• In-person payments
• Payment Links
• Invoices
• Ecommerce integrations

Its biggest differentiator is its connection to the wider PayPal ecosystem.

Businesses already using:

• PayPal Business
• PayPal Checkout
• PayPal Invoicing

may appreciate keeping more of their payment activity within the same ecosystem.

Which Provider Has Better Payouts?

For most businesses, there is very little practical difference.

Both providers offer straightforward settlement processes and easy-to-use dashboards.

The deciding factor is usually whether PayPal integration is important to your business.

Which Is Best For Your Business?

The best provider depends largely on how your business operates and which features matter most to you.

Here’s how Square and Zettle compare across different business types.

Sole Traders

Winner: Tie

For sole traders, simplicity and affordability are often the most important factors.

Both providers offer:

• 1.75% transaction fees
• No long-term contracts
• Tap to Pay
• Low-cost entry points
• Easy setup

Many sole traders will never need Square’s advanced software tools, making Zettle a perfectly reasonable alternative. Businesses that expect to grow may still prefer Square, but for many sole traders the practical differences between the two providers will be relatively small.

The choice often comes down to whether you prefer Square’s broader ecosystem or Zettle’s simplicity.

Market Traders

Winner: Tie

Both providers are excellent choices for market traders. The choice may come down to whether you value Square’s broader ecosystem or Zettle’s PayPal integration.

They offer:

• Portable payment solutions
• Smartphone compatibility
• Contactless payments
• No monthly fee requirements

For most market traders, either provider will perform equally well.

Tradespeople

Winner: Tie

Tradespeople often prioritise:

• Reliability
• Portability
• Ease of use

Both Square and Zettle perform strongly in these areas.

Tap to Pay functionality makes it easy to accept payments on-site without investing heavily in hardware.

For electricians, plumbers, builders and other mobile businesses, either provider is likely to be a suitable choice.

Retail Shops

Winner: Square

Retail businesses often require:

• Inventory management
• Reporting
• Dedicated hardware
• Faster checkout processes

While both providers offer suitable retail solutions, Square’s stronger retail software and wider hardware range give it a clear advantage.

As a retail business grows, Square provides more options without requiring a change of provider.

Cafés & Hospitality Businesses

Winner: Square

Hospitality businesses often need:

• Faster service workflows
• Dedicated payment devices
• Staff management tools
• Restaurant-specific functionality

Square’s hospitality-focused software and broader hardware ecosystem make it particularly well suited to cafés, food outlets and restaurants.

For these businesses, the difference between the two providers becomes much more noticeable.

Growing Businesses

Winner: Square

This is where Square’s strengths become most apparent.

Growing businesses often need:

• More advanced reporting
• Additional hardware options
• Better scalability
• Industry-specific tools

Square was designed with these requirements in mind.

While Zettle remains an excellent solution for smaller businesses, Square generally provides a clearer path for businesses expecting to expand.

Is Square or Zettle Better Value?

At first glance, both providers appear to offer very similar value.

Both charge the same 1.75% transaction fee for in-person payments. Both offer card readers, payment terminals, Tap to Pay functionality and free POS software.

For businesses that simply need a reliable way to accept card payments, either provider could be a good choice.

However, when looking beyond transaction fees, Square begins to pull ahead.

The reason is simple: you receive significantly more functionality for the same payment processing cost.

Square provides:

• A broader hardware range
• More advanced retail tools
• Hospitality-specific functionality
• Appointment management
• Better online selling tools
• Stronger scalability

For businesses that never intend to move beyond a basic card reader setup, these additional capabilities may not be particularly valuable.

However, for businesses that expect to grow or require more than basic payment acceptance, Square’s ecosystem offers considerably more flexibility.

Zettle’s strongest advantage remains its connection to the PayPal ecosystem.

Businesses already using PayPal extensively may find this valuable enough to outweigh Square’s additional features.

For everyone else, Square generally provides more functionality for the same transaction fee.

🏆 Overall Value Winner: Square

Frequently Asked Questions

Ready to Learn More?

Before making a decision, it’s worth taking a closer look at each provider’s pricing, hardware and software features. Our detailed provider guides explain transaction fees, card reader costs, optional subscriptions and business features in more detail. This can help ensure you choose a provider that not only meets your needs today but continues to support your business as it grows.