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

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Zettle and Square are two of the most popular card payment providers for small UK businesses in 2026. Both charge a flat 1.75% per in-person transaction with no monthly fee on their free plans, making a direct fee comparison almost identical on paper. The real differences lie in hardware options, integrations, online selling tools, and which PayPal or Square ecosystem you already work within. Zettle suits businesses already using PayPal or those wanting a simple, well-built card reader with minimal setup. Square suits businesses that want a broader set of free point-of-sale tools, including built-in inventory management and a free online store.

Who Is This Page For?

This page is for UK small business owners comparing Zettle and Square before buying a card reader or switching provider. It covers transaction fees, hardware costs, POS software, settlement speed, and which provider works better for specific business types. It is also useful for anyone searching for iZettle fees or iZettle charges, as Zettle was previously known as iZettle before PayPal's rebrand in 2021.

Zettle vs Square: Fee Comparison

What Percentage Does Zettle Take?

Zettle takes 1.75% of every in-person card transaction, including chip and PIN, contactless, Apple Pay, and Google Pay. There are no additional authorisation fees, monthly fees, or setup costs on the standard pay-as-you-go plan. For online payments processed through Zettle's platform, the fee rises to 2.5% per transaction. On £10,000 of monthly in-person sales, Zettle's fee totals £175. On the same volume processed online, the cost rises to £250.

Previously trading as iZettle, the provider has used the same 1.75% in-person rate since before its acquisition by PayPal in 2018. The rate has not changed as a result of the rebrand. If you see references to iZettle fees or iZettle charges, they apply to the same product now called Zettle by PayPal.

How Much Does Zettle Cost in 2026?

Zettle's full cost breaks down into three parts: hardware, transaction fees, and optional add-ons. The Zettle Reader 2 costs £29 + VAT for first-time buyers and £69 + VAT for replacements. There is no monthly fee and no contract. The transaction fee is 1.75% for in-person payments and 2.5% for online payments. Zettle does not charge for the POS app, sales reporting, or basic inventory tools.

To put the transaction fee in concrete terms: at £5,000 monthly card turnover the fee costs £87.50. At £20,000 monthly turnover it costs £350. At £50,000 monthly turnover, you pay £875 in fees every month. That last figure is where it becomes worth comparing Zettle against interchange-plus pricing from a traditional acquirer, which could reduce costs by £150 to £300 a month depending on your card mix.

What is Zettle?

Zettle is a card payment provider owned by PayPal, launched in the UK as iZettle before rebranding in 2021 following PayPal's acquisition in 2018. It provides a compact Bluetooth card reader, a free point-of-sale app, and basic inventory and sales reporting tools. The Zettle Reader 2 accepts chip and PIN, contactless, and mobile wallet payments including Apple Pay and Google Pay. Its flat 1.75% transaction rate applies to all UK in-person card payments on the standard plan.

Zettle's main strength is simplicity. Setup takes under 10 minutes, there are no monthly fees, and the hardware is reliable and well-reviewed. Its PayPal integration means in-person and online PayPal sales appear in the same dashboard — a genuine benefit if PayPal is already your online checkout. For a full breakdown of fees and features, see the Zettle provider review on Compare Card Fees.

What is Square?

Square is a US-founded payment and business management platform that launched in the UK in 2017. It offers card readers, a free POS app, a built-in online store, invoicing, appointment booking, and payroll tools. The Square Reader accepts chip and PIN and contactless payments at a flat 1.75% per transaction. Square also offers more advanced hardware including the Square Terminal (a standalone card machine with built-in receipt printer) and the Square Register (a dual-screen countertop system).

Square's free POS software is more feature-rich than Zettle's out of the box. It includes detailed inventory tracking, customer loyalty tools, team management, and a free website builder with an online store. That breadth makes it attractive for small retailers and hospitality businesses. You can read a detailed breakdown on the Square provider review on Compare Card Fees.

Zettle vs Square: Features Compared

Payment Methods

Both providers accept chip and PIN, contactless cards, Apple Pay, and Google Pay in person. Zettle charges 2.5% for online and invoice payments processed through its platform. Square charges 1.4% + 25p for UK card online transactions and 2.5% + 25p for non-UK cards — making Square meaningfully cheaper if you process a significant volume of online orders. Neither provider supports recurring billing on its free plan without a third-party integration.

Hardware and Terminals

Zettle's Reader 2 is compact, light, and consistently rated well for build quality. First-time buyers pay £29 + VAT, which is one of the lowest entry points in the UK card reader market. Replacement readers cost £69 + VAT. There is no standalone terminal option — you must pair the reader with a phone or tablet running the Zettle app.

Square offers more hardware variety. The Square Reader costs £49 + VAT. The Square Terminal is a standalone device with a built-in receipt printer, priced at £149 + VAT. The Square Register is a full countertop system at £649 + VAT. That range suits businesses that outgrow a phone-and-reader setup without needing to switch providers entirely. See the cheapest card machines for small UK businesses guide for a broader comparison across providers.

Point-of-Sale Software and Integrations

Square's free POS app includes inventory management for unlimited items, customer profiles, discount tools, and team permissions. Its free online store connects directly to in-person inventory, removing the need for manual stock reconciliation. Square also integrates with Xero, WooCommerce, and a range of third-party apps through its developer API.

Zettle's POS app covers the basics: product catalogue, sales history, and simple reporting. It integrates with accounting platforms including Xero and QuickBooks, and connects to Shopify, BigCommerce, and WooCommerce. The PayPal integration is Zettle's standout connection — transactions from both channels consolidate into a single PayPal business account. For businesses not using PayPal, Zettle's integration range is narrower than Square's.

International Support

Zettle operates in 12 countries across Europe and the Americas, though its UK product is managed separately from its European counterparts post-Brexit. It accepts most major card schemes in the UK. Square is available in fewer countries overall but has a strong UK-specific product. Neither provider is designed for businesses processing high volumes of multi-currency international transactions — for that use case, providers like Adyen or Stripe are more appropriate.

Fraud Tools and Security

Both providers are PCI DSS compliant and handle PCI responsibilities on the merchant's behalf, removing the annual PCI audit burden for most small businesses. Zettle processes payments through PayPal's infrastructure, which brings PayPal's fraud detection tools into play. Square uses its own machine-learning fraud detection and offers Seller Protection on eligible transactions. Neither provider publishes chargeback rates or detailed fraud metrics publicly. For more on how PCI compliance works in practice, see the PCI compliance fees guide.

Customer Support

Zettle offers phone support Monday to Friday, 9am to 5pm, plus email and a help centre. Response times are generally reported as adequate, though phone queues can be long during peak periods. Square provides phone and email support Monday to Friday, 9am to 5pm, plus a live chat option on its website. Square's help documentation is more detailed than Zettle's and covers a wider range of use cases, reflecting its broader product range.

Zettle vs Square vs SumUp: How Do They Compare?

Three providers frequently appear together in small business comparisons: Zettle, Square, and SumUp. All three charge a flat in-person rate and have no monthly contract. SumUp charges 1.69% per in-person transaction, which is slightly below Zettle's and Square's 1.75%. SumUp's card reader starts at £39 + VAT, sitting between Zettle's £29 + VAT introductory price and Square's £49 + VAT.

SumUp's slightly lower transaction rate saves around £6 per month on £10,000 of monthly card sales compared to Zettle or Square. That difference is unlikely to be the deciding factor. Square wins on POS features; Zettle wins on PayPal integration; SumUp sits in the middle on both. For a head-to-head, see the Square vs SumUp comparison and the Zettle vs SumUp comparison.

Pros and Cons

Zettle Pros and Cons

Pros

• Reader 2 costs just £29 + VAT for first-time buyers — one of the cheapest card readers available in the UK
• No monthly fees and no long-term contract
• Direct PayPal integration consolidates in-person and online PayPal sales in one place
• Quick setup — the app and reader are ready to take payments in under 10 minutes
• Integrates with Xero, QuickBooks, Shopify, and WooCommerce

Cons

• Online payment fee of 2.5% is higher than Square's 1.4% + 25p for UK cards
• No standalone terminal — you must use a phone or tablet, which may not suit all retail environments
• POS software is more basic than Square's, with fewer built-in tools for inventory and staff management
• Replacement readers cost £69 + VAT, significantly more than the introductory price

Square Pros and Cons

Pros

• Free online store included — useful for businesses selling both in person and online without paying for a separate e-commerce platform
• More hardware options, including the Square Terminal at £149 + VAT and the Square Register at £649 + VAT
• Lower online transaction rate of 1.4% + 25p for UK cards compared to Zettle's 2.5%
• More extensive free POS features, including inventory management, customer loyalty tools, and team permissions
• Instant transfer option available for a 1% fee (minimum £1), which Zettle does not offer

Cons

• Card reader costs £49 + VAT — £20 more than Zettle's introductory price
• Account stability has historically been a concern: some merchants report unexpected holds on funds, particularly in the early weeks of a new account
• Advanced features such as Square for Retail Plus require a monthly subscription from £49/month, which adds up over time
• Not suitable for businesses processing over roughly £50,000 per month, where a negotiated interchange-plus rate would be considerably cheaper

Which is Better For...?

Small Retail Businesses and Market Traders

For a market trader or small independent retailer taking most payments in person, the two providers are almost identical on cost. Zettle's lower entry price (£29 + VAT for the first reader versus Square's £49 + VAT) gives it a slight edge for those starting out with a minimal upfront budget. If you plan to grow and want a countertop setup later, Square's Terminal and Register options mean you stay on the same platform as you scale. Zettle wins on initial cost; Square wins on long-term hardware flexibility. See the card payment guide for market traders for more context.

Hospitality Businesses

Square has a specific free tier for cafes, restaurants, and food businesses with table management, menu customisation, and kitchen ticket printing. Zettle has no equivalent hospitality-specific POS functionality. For a café, bar, or small restaurant, Square is the stronger choice between the two. Businesses with more complex hospitality needs — such as table reservations or integration with EPOS systems — should consider dedicated hospitality payment providers alongside Square. The payment provider guide for cafes covers these options in more detail.

Online and Mixed-Channel Sellers

If you sell both in-store and online, Square's built-in free online store and lower online transaction fee (1.4% + 25p for UK cards versus Zettle's 2.5%) make it the better option for most mixed-channel businesses. Zettle is the exception if you already use PayPal as your online checkout — the unified dashboard and PayPal brand recognition with customers can be worth more than the fee difference in that specific scenario.

Sole Traders and Mobile Service Providers

A plumber, personal trainer, or mobile beautician who takes occasional card payments benefits from the simplicity of both providers. Zettle's lower hardware cost and straightforward app make it particularly well suited. At low transaction volumes — say, £3,000 per month — the 1.75% fee costs £52.50 a month on both platforms, so the differentiator is purely ease of use and hardware price. Zettle is the marginally simpler choice for occasional, mobile payments. The sole trader payment guide covers further options worth comparing.

A Cheaper Square Alternative

If you are looking for a cheaper alternative to Square, Zettle is the closest match on transaction fees (both charge 1.75% in person). Zettle's introductory reader price of £29 + VAT undercuts Square's £49 + VAT. SumUp is also worth considering, with a 1.69% in-person rate and a standalone terminal option. For businesses processing higher volumes, a traditional merchant account with interchange-plus pricing from providers like Dojo or Takepayments will typically be cheaper than any flat-rate provider. The interchange-plus vs blended pricing guide explains the difference.

Our Verdict

Zettle and Square are closely matched, and for most small businesses taking in-person payments, either will do the job well. The honest answer is that your existing tools should drive the decision. Use Zettle if you already use PayPal for online sales or want the cheapest possible entry into card payments. Use Square if you want more built-in POS functionality, a free online store, or plan to expand into a countertop setup without changing providers.

Neither is the right choice if your monthly card turnover exceeds around £50,000. At that level, the 1.75% flat rate costs you £875 per month in fees. A traditional acquirer with interchange-plus pricing could reduce that by a meaningful amount — often £150 to £300 per month depending on your card mix. Both Zettle and Square are also payment service providers rather than dedicated merchant accounts, which means your funds can be held if their fraud systems flag unusual activity. The merchant account vs PSP guide explains that distinction clearly.

Updated August 2026.