Square vs takepayments UK 2026: Fees, Features & Which to Choose

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Square and takepayments are two very different card payment providers aimed at different types of UK business. Square is a pay-as-you-go system with no monthly fees or contracts, built for sole traders, market stalls, cafés, and small retailers who want to get started quickly and keep costs predictable. takepayments is a contract-based merchant services provider with negotiated rates, dedicated account managers, and a stronger focus on established businesses processing higher card volumes each month. This page compares their fees, hardware, features, and contract terms so you can choose the right fit for your business in 2026.

Square vs takepayments: Fee Comparison

What is Square?

Square is a US-founded payment technology company that launched in the UK in 2017. It offers a pay-as-you-go card payment system built around ease of setup: you can order a free card reader, download the Square Point of Sale app, and take your first payment the same day. Square charges a flat 1.75% on every in-person UK card transaction, with no monthly fees on its base plan, no setup costs, and no long-term contracts. That pricing simplicity makes it popular with small cafés, independent retailers, market traders, and sole traders who want cost certainty without reading a 30-page contract.

Beyond the card reader, Square has expanded its product range significantly. It now offers the Square Terminal (a standalone device at £149), the Square Register (a dual-screen point-of-sale system at £649), an online store builder, invoicing tools, payroll software, and industry-specific point-of-sale apps for restaurants and retail. The free Square Point of Sale app includes inventory tracking, sales reports, and customer directory tools at no extra charge. For more detail on Square's full product range and pricing, see the Square UK review on Compare Card Fees.

What is takepayments?

takepayments is a UK-based merchant services provider founded in 2009 and headquartered in Leeds. It targets small and medium-sized businesses that process cards regularly and want lower transaction rates than a flat-fee provider like Square can offer. takepayments assigns each business a dedicated account manager and negotiates rates individually based on your monthly card turnover, your business type, and your average transaction value. Typical blended rates sit between 0.75% and 1.5% per transaction, though the exact rate depends on your agreement. Contracts run for 18 months as standard, and early termination fees apply if you leave before the term ends.

takepayments offers a range of card terminals including countertop, portable, and mobile GPRS machines, supplied by manufacturers such as Paymentsense-linked hardware and Ingenico. It also provides a virtual terminal for telephone payments and a hosted payment page for online transactions. Customer support is available by phone and email during business hours, and businesses get a named account manager rather than a generic support queue. For a full breakdown of takepayments' pricing and contract terms, read the takepayments UK review on Compare Card Fees.

Square vs takepayments: Features Compared

Payment Methods

Both providers accept Visa and Mastercard debit and credit cards, American Express, and contactless payments including Apple Pay and Google Pay. Square also supports cash tracking within its POS app, buy now pay later through a Clearpay integration, and Square Online for e-commerce transactions. takepayments supports MOTO (mail order/telephone order) payments through its virtual terminal, which Square also offers at 2.5% per keyed transaction. Neither provider natively supports open banking payments as a checkout option at the time of writing.

Hardware and Terminals

Square's hardware range is clean and modern. The free magstripe and chip-and-PIN reader pairs with any iOS or Android device via Bluetooth. The Square Terminal is a self-contained device with a built-in receipt printer, priced at a one-off £149. The Square Register is a full dual-screen countertop system at £649. All Square hardware is purchased outright with no ongoing rental fees. takepayments provides countertop terminals for businesses with a fixed till point, portable terminals for tableside payments, and mobile GPRS terminals for tradespeople or delivery drivers who need to take payment on the road. takepayments terminals are typically rented rather than purchased, costing around £15 to £25 per month depending on the model and contract terms. Buying outright is possible from around £199. takepayments hardware is functional but less design-led than Square's range.

Software and Integrations

Square integrates with a wide ecosystem of third-party tools. Its open API connects with Xero, QuickBooks, WooCommerce, BigCommerce, and hundreds of apps via Zapier. Its own POS software covers inventory management, employee timesheets, and customer loyalty programmes out of the box. takepayments' integration options are narrower. It connects with accounting software and can link to some e-commerce platforms, but it does not offer a public API for developers or a comparably deep library of third-party app connections. Businesses that rely heavily on software integrations will find Square the stronger choice.

International Payments

Square accepts all major international cards at the same flat 1.75% rate for in-person payments, which means you pay no surcharge for a foreign Visa or Mastercard tapped in your shop. Online, Square charges 2.5% for non-UK European cards. takepayments is primarily designed for UK domestic card acceptance. International card acceptance is possible but rates for non-UK cards may be higher under your blended agreement. Businesses with a significant proportion of overseas tourist customers should clarify international card rates with takepayments before signing.

Fraud Tools and Security

Square handles PCI DSS compliance on your behalf at no charge. Its fraud detection runs automatically across all transactions, and disputes are managed through the Square dashboard. takepayments also includes PCI DSS compliance support, typically with an annual PCI compliance fee of around £30 to £50 included in the contract. Both providers support 3D Secure authentication for online transactions. Neither provider stands out as particularly advanced in real-time fraud scoring for high-risk merchants; businesses in sectors like travel or gaming will need a specialist acquirer.

Customer Support

This is a genuine differentiator between the two. takepayments assigns a named account manager to every merchant, which means you have a single point of contact for billing queries, terminal faults, and rate negotiations. Square's support model is primarily self-serve: it offers a detailed help centre, email support, and phone support during UK business hours, but there is no dedicated account manager. For businesses that prefer a personal relationship with their payment provider, takepayments has a clear advantage here.

Pros and Cons

Square Pros and Cons

Pros

• No monthly fees on the base plan and no long-term contract commitment
• Free card reader to get started on day one
• Flat 1.75% rate applies to all UK card types, so there are no surprise charges for premium cards
• Next-business-day settlement as standard, with instant payout available for 1%
• Rich free software: inventory management, sales analytics, and customer tools at no extra cost
• Wide integration library including Xero, WooCommerce, and BigCommerce

Cons

• At high volumes, 1.75% becomes expensive. At £30,000 monthly turnover, that is £525 in fees versus around £300 at a 1.0% negotiated rate
• Account stability issues are a known concern: Square can freeze or terminate accounts with limited notice if its automated risk systems flag unusual activity
• No dedicated account manager. Support is largely ticket-based or via phone queues
• American Express acceptance costs 2.5% per transaction, higher than the standard rate

takepayments Pros and Cons

Pros

• Negotiated rates can be significantly lower than Square's flat 1.75%, particularly for businesses processing over £5,000 a month
• Dedicated account manager for ongoing support and rate reviews
• Full range of terminal types: countertop, portable, and mobile GPRS
• Virtual terminal included for telephone order payments
• Established UK provider with over 15 years of operation

Cons

• 18-month contracts with early termination fees create a financial risk if your circumstances change
• Pricing is not published online. You must request a quote, which makes upfront comparison harder
• Terminal rental fees add a fixed monthly cost regardless of how much you process
• Settlement is typically two to three working days, slower than Square's next-day standard
• Software and integration options are more limited than Square's, with no public developer API

Which is Better For...?

Small Retail Businesses and Sole Traders

Square is the stronger choice here. A sole trader or small shop processing under £5,000 a month in card payments will pay around £87.50 a month at Square's 1.75% rate. Signing an 18-month takepayments contract for that volume adds contract risk and terminal rental costs that likely outweigh any rate saving. Square's free reader, no monthly fee, and same-day setup make it the practical option for low-volume businesses just starting out or testing a new trading location.

Established SMEs With Consistent Card Volume

At monthly card turnover above £8,000 to £10,000, takepayments begins to look more attractive on pure cost. A business processing £15,000 a month pays £262.50 with Square at 1.75%. At a negotiated 1.0% rate with takepayments, that falls to £150, saving £112.50 a month. Even accounting for a £20 monthly terminal rental, takepayments saves around £92.50 a month at that volume. Over 18 months, that is a saving of around £1,665, assuming the terminal and minimum service charges do not erode that gap. Get exact quotes from both before committing.

Hospitality Businesses

Both providers have relevant products for cafés, restaurants, and pubs. Square for Restaurants is a well-developed POS system with table management, covers tracking, and kitchen display integration, available from £29 per month on the Plus plan. takepayments offers portable terminals well-suited to tableside payments but lacks comparable POS software depth. For hospitality businesses that want an integrated POS and payments solution, Square offers more out of the box. For a large venue already running its own EPOS that simply needs a reliable terminal, takepayments is a reasonable option.

Mobile and Field-Based Businesses

Tradespeople, market traders, and delivery drivers need a payment solution that works reliably away from a fixed location. Square's free mobile reader paired with a smartphone works well for occasional mobile payments. For businesses taking dozens of mobile payments a day, takepayments' GPRS mobile terminal is a sturdier, dedicated device. Both options work offline to a degree, though Square's app requires a data connection to process. The choice here comes down to whether you want to avoid a contract (Square) or prefer a purpose-built mobile terminal (takepayments).

Our Verdict

Square wins on simplicity, speed of setup, and software quality. If you are starting a business, processing under £8,000 a month in cards, or want to avoid a long-term contract, Square is almost certainly the right choice. Its flat 1.75% rate is easy to budget for, its free card reader removes the upfront cost barrier, and its POS software is genuinely useful at no extra charge. The lack of a dedicated account manager and the risk of account holds are real drawbacks, but for most small businesses those risks are manageable.

takepayments is the better option for established UK businesses with consistent monthly card turnover who have outgrown flat-rate pricing. If you are processing £10,000 or more a month and can commit to an 18-month contract, the lower negotiated rate will save you real money. The personal account manager and full terminal range are genuine advantages for bricks-and-mortar businesses. Just read the contract carefully before you sign, particularly around early termination fees and minimum monthly service charges.

The honest answer is that the right choice depends on your monthly volume, your appetite for contract commitment, and how much you value software flexibility versus lower transaction rates. Compare Card Fees is a free, independent advisory service that has helped UK businesses find better card payment deals since 2012. Use the Compare Card Fees comparison tool to get tailored quotes from both providers and compare them side by side before you decide.