Square vs Zettle 2026: Same 1.75% Fee, So Which Is Better?
Square and Zettle charge the same 1.75% on UK card payments in person. So if you're torn between them, fees won't settle it. What will is where your money goes, which software suits how you sell, and what kit you need. We checked both UK pricing pages in October 2026 and lined them up side by side.
Quick comparison table
| Square | Zettle by PayPal (PayPal POS) | |
|---|---|---|
| In person rate, UK cards | 1.75% | 1.75%, all major cards including Amex |
| Non UK cards in person | 1.75% + 1.5% | 1.75% |
| Monthly fee | £0 on Free plan; Plus plans from £29 | £0 |
| Entry reader | Square Reader £19 ex VAT list price | PayPal Reader £29 ex VAT for new users; extra readers £69 |
| Standalone terminal | Square Terminal £149 ex VAT | PayPal Terminal £149 ex VAT |
| Online card payments | 1.4% + 25p for UK cards | Payment Links 2.5%, temporarily unavailable for new sellers |
| Invoices | 2.5% | 2.5% for sellers who joined before 8 May 2023 |
| Payouts | Free to your bank in one to two working days; instant for a fee | To your PayPal Business account, typically within minutes |
Sources: squareup.com/gb/en/pricing and zettle.com/gb/pricing, checked October 2026.
Fees compared
On UK cards in person, there's nothing between them. Both charge 1.75%, with no monthly fee on their basic plans and no contract.
The differences are at the edges:
- Tourists and overseas cards. Square adds 1.5% for non UK cards, making 3.25%. Zettle charges 1.75% across all major cards. If you trade in a tourist town, that's a real point for Zettle.
- Online. Square's 1.4% + 25p for UK cards online is cheaper than a 2.5% payment link on any order over about £23.
- Lower rate plans. Neither publishes a lower rate for small businesses. Square offers custom rates on its Premium plan for businesses processing over £200,000 a year; PayPal says custom rates may be agreed at its discretion.
Worked monthly cost examples
| Monthly card takings | Square (1.75%) | Zettle (1.75%) | If 20% are overseas cards: Square | Zettle |
|---|---|---|---|---|
| £2,000 | £35.00 | £35.00 | £41.00 | £35.00 |
| £10,000 | £175.00 | £175.00 | £205.00 | £175.00 |
| £30,000 | £525.00 | £525.00 | £615.00 | £525.00 |
The overseas column assumes a fifth of your takings come from non UK cards, charged at Square's extra 1.5%. For most local businesses that share will be far lower, but for a gift shop in York or Edinburgh it might not be.
Hardware
Square's Reader is the cheaper starting point at £19 ex VAT list price, and it was on offer when we checked. PayPal's Reader is £29 ex VAT for your first one as a new business user, but £69 for each extra, which adds up if you need several.
Both standalone terminals cost £149 ex VAT and have built in screens. Square offers interest free payment plans on hardware purchases from £29 to £3,000. PayPal sells add ons such as a countertop dock, a printer dock and a barcode scanner version of the Terminal separately.
Tap to Pay
Both let you take contactless payments on a compatible phone with no extra hardware. It's a handy backup if your reader's battery dies mid shift.
Software
This is where the two really part ways.
Square has the bigger free toolkit: POS, online store, invoices, a virtual terminal, Square Appointments from £0 a month and industry plans for restaurants and retail from £29 a month. Add ons such as kitchen displays (from £15 per device a month) and kiosks (£35 per device a month) let a cafe grow without switching provider.
Zettle's PayPal POS app is free and focused on retail: product library with variants, stock tracking, gift cards, staff reports and real time sales. It's simpler, which some shop owners will prefer.
Where your money goes
Square pays into your existing bank account, free in one to two working days, or instantly for a fee. Zettle pays into your PayPal Business account, typically within minutes. If you already sell on PayPal online, having everything in one balance is convenient. If you'd rather your takings landed straight in your high street bank, Square's simpler.
Which is better for your business?
Cafe
Square. Its restaurant tools, kitchen displays and kiosks give you room to grow, and you're paid into your bank.
Market stall
Close call. Square's £19 Reader is cheaper, but Zettle's money within minutes in PayPal helps if you restock with cash flow from the same weekend.
Hairdresser
Square, mainly because Square Appointments handles booking, reminders and payments in one place from £0 a month.
Retail shop
Either works. Zettle's POS is strong for stock and variants, and it's better if you get lots of overseas visitors. Square's online store helps if you want a website too.
Trades
Square's invoices and virtual terminal suit people who quote and bill after a job.
Taxi
Both work with a phone and reader. If you pick up lots of tourists, Zettle's flat 1.75% on all major cards avoids Square's non UK surcharge.
Pros and cons
Square
Pros: cheapest reader, broad free software, pays into your own bank, cheaper online rate.
Cons: non UK cards cost an extra 1.5%, free payouts take one to two working days.
Zettle
Pros: same 1.75% on all major cards including overseas ones, money in PayPal within minutes, good free retail POS.
Cons: extra readers cost £69 ex VAT, money sits in PayPal, payment links and invoices limited for new sellers.
Day to day: what using each one is like
Getting set up. Both are quick. You sign up online, verify your identity and order a reader. Many businesses can start taking payments with Tap to Pay on their phone while the reader is in the post.
Taking a payment. On both, you type the amount or pick items from your product list, and the customer taps, inserts or swipes. Receipts go by email or SMS unless you've added a printer.
Getting paid. This is a real difference. Square pays into your own bank account, usually in one to two working days. Zettle pays into your PayPal Business account, typically within minutes, and you then move the money to your bank. If you already use PayPal for online sales, that's handy. If you don't, it's an extra step.
Staff. Both let you add staff logins. Square's team tools are more detailed, with timecards and permissions on paid plans.
Stock. Both handle a product library and basic stock counts. If you run a busy shop with lots of variants, try the free versions of each with a few of your own products first.
Common mistakes when choosing between them
- Picking on the reader price alone. A £10 difference in hardware is nothing next to a 1.5% surcharge on overseas cards over a year.
- Ignoring where payouts land. If moving money out of PayPal is a hassle for your bookkeeping, Square's direct bank payouts may suit you better.
- Not checking online needs. If you sell online now, or plan to, Square's online payments and free online store give it the edge, especially while Zettle's Payment Links are unavailable to new sellers.
- Assuming one is always cheaper. On UK cards in person they cost the same. The choice comes down to customers, software and payouts.
A simple way to decide
Ask yourself three questions:
- Do many of my customers have non UK cards? If yes, lean towards Zettle.
- Do I want an online store, appointments or restaurant tools? If yes, lean towards Square.
- Do I already use PayPal for my business? If yes, Zettle fits in neatly. If not, Square's bank payouts are simpler.
If you're still split, buy the cheaper reader and try it for a month. Neither ties you into a contract.
Switching between them
Neither has a contract, so switching only costs you the new hardware and an afternoon setting up your product list. Run both for a week if you can, and remember that refunds must go back through whichever provider took the original payment.
Verdict
If you want more software, bank payouts and cheaper online payments, pick Square. If you already live in PayPal, sell to lots of overseas visitors or want money available within minutes, pick Zettle. Either way, you'll pay the same 1.75% on a UK card over the counter.
FAQs
Is Square or Zettle cheaper?
For UK cards in person, neither: both charge 1.75%. Square's Reader is cheaper upfront at £19 ex VAT list price against £29. Zettle is cheaper for overseas cards, and Square is cheaper online.
Which pays out faster?
Zettle. Funds typically reach your PayPal Business account within minutes. Square's free transfers take one to two working days, or you can pay for instant transfers.
Do Square and Zettle take Amex?
Yes. Both charge 1.75% on Amex for in person payments in the UK.
Do I need a contract for Square or Zettle?
No. Neither has a contract or monthly fee on its basic plan.
Which is better for a small shop?
Both are good. Zettle's free POS is strong for stock and variants; Square adds an online store and more add ons.
Can I use both?
Yes. Some businesses keep one as a backup. Just reconcile both sets of takings in your books.
Can I run Square and Zettle side by side?
Yes. Some businesses keep a spare reader from the other provider as a backup.