Square vs Zettle UK: Complete Comparison

Square vs Zettle: Overview

Square and Zettle (formerly iZettle, acquired by PayPal in 2018) compete directly in the UK pay-as-you-go card machine market. Both target small businesses wanting simple payment acceptance without contracts or monthly fees. They’re priced identically for in-person transactions (1.75%), making the decision about features, ecosystem, and business fit rather than pure cost.

Company Backgrounds

Square:

• Founded 2009 by Jack Dorsey (Twitter co-founder)
• US-based, UK operations since 2017
• Processing $200+ billion annually globally
• Publicly traded (NYSE: SQ, now Block Inc.)
• Known for comprehensive business ecosystem
• Focus: Complete business management platform

Zettle (by PayPal):

• Founded 2010 as iZettle in Sweden
• Acquired by PayPal 2018 for $2.2 billion
• Rebranded to Zettle by PayPal 2020
• Processing billions annually for millions of merchants
• Backed by PayPal’s global infrastructure
• Focus: Simple payments integrated with PayPal ecosystem

Transaction Fees Comparison

Fee Structures

Square:

• In-person (card-present): 1.75%
• Online payments: 2.5% + 25p
• Invoices: 2.5% + 25p
• Keyed-in transactions: 2.5% + 25p
• No monthly fees
• No setup fees

Zettle:

• In-person (card-present): 1.75%
• Online payments: 2.5% + 25p (via PayPal integration)
• Invoices: 1.75% + 25p (via Zettle invoicing)
• PayPal QR code payments: 0.9%
• No monthly fees
• No setup fees

Cost Comparison at Different Volumes

In-person transactions only:

Monthly turnover: £3,000

• Square: £3,000 × 1.75% = £52.50
• Zettle: £3,000 × 1.75% = £52.50
• Identical cost

Monthly turnover: £10,000

• Square: £10,000 × 1.75% = £175
• Zettle: £10,000 × 1.75% = £175
• Identical cost

Monthly turnover: £20,000

• Square: £20,000 × 1.75% = £350
• Zettle: £20,000 × 1.75% = £350
• Identical cost

The verdict: For in-person card payments, costs are identical. The decision comes down to features, settlement speed, and ecosystem preferences rather than pricing.

However: If you send invoices frequently, Zettle charges 1.75% + 25p compared to Square’s 2.5% + 25p. On £5,000 monthly invoice payments, Zettle saves £37.50/month (£450 annually).

Terminal Options and Costs

Square Terminals

Square Reader (Bluetooth):

• Cost: £39
• Type: Bluetooth card reader connects to smartphone/tablet
• Best for: Market stalls, pop-ups, mobile businesses
• Pros: Affordable, portable, uses free Square POS app
• Cons: Requires smartphone, Bluetooth connection

Square Terminal:

• Cost: £299
• Type: All-in-one touchscreen terminal
• Best for: Retail, restaurants, salons, fixed locations
• Pros: No phone needed, receipt printer, comprehensive EPOS, Wi-Fi + Ethernet
• Cons: Expensive, Wi-Fi only (no cellular), not portable

Square Stand:

• Cost: £149 (iPad not included)
• Type: iPad point-of-sale stand with card reader
• Best for: Restaurants, retail needing large screen EPOS
• Pros: Large display, full POS capabilities
• Cons: Requires separate iPad purchase, countertop only

Zettle Terminals

Zettle Reader 2:

• Cost: £29
• Type: Bluetooth card reader connects to smartphone/tablet
• Best for: Occasional sales, mobile traders, market stalls
• Pros: Cheapest option, compact, portable
• Cons: Requires smartphone, Bluetooth only

Zettle Terminal:

• Cost: £99
• Type: Standalone portable terminal
• Best for: Mobile businesses, tradespeople, small retail
• Pros: No phone needed, 4G connectivity, receipt printer, affordable
• Cons: Smaller screen than Square Terminal, basic features

Zettle Terminal 2 (Pro):

• Cost: £249
• Type: Advanced portable terminal with larger screen
• Best for: Retail shops, restaurants, higher-volume businesses
• Pros: Larger screen, 4G + Wi-Fi, receipt printer, inventory management
• Cons: More expensive than standard Zettle Terminal

Terminal Comparison Summary

Budget Bluetooth readers:

• Zettle Reader 2: £29 (wins by £10)
• Square Reader: £39

Mid-range standalone terminals:

• Zettle Terminal: £99 (wins – portable with 4G)
• Square Terminal: £299 (better features but 3× price, Wi-Fi only)

Premium terminals:

• Zettle Terminal 2: £249 (portable with 4G)
• Square Terminal: £299 (countertop, more EPOS features)

The verdict: Zettle offers cheaper hardware across most categories. Critically, Zettle terminals have 4G/cellular connectivity while Square Terminal is Wi-Fi only, making Zettle better for truly mobile businesses (tradespeople, markets, outdoor events).

Features Comparison

Payment Processing Features

Feature	Square	Zettle
Contactless payments (up to £100)	✅	✅
Chip and PIN	✅	✅
Magnetic stripe	✅	✅
Email receipts	✅	✅
Tipping function	✅	✅
Split payments	✅	✅
Multi-currency	✅	✅
Offline mode	✅	✅
PayPal integration	Limited	✅ Native

Business Management Features

Feature	Square	Zettle
Inventory management	✅ Advanced	✅ Good
Employee management	✅ Comprehensive	✅ Basic
Sales reporting	✅ Advanced	✅ Good
Customer database	✅	✅
Table management (restaurants)	✅	❌
Appointment booking	✅ (Square Appointments)	❌
Loyalty programs	✅	❌
Gift cards	✅	❌
Barcode scanning	✅	✅

The verdict: Square offers more comprehensive business management features, especially for restaurants (table management) and service businesses (appointment booking). Zettle provides solid core features but lacks some advanced functionality. Both handle inventory and basic employee management adequately for small businesses.

PayPal Integration (Zettle’s Key Advantage)

How Zettle Integrates with PayPal

Unified PayPal account:

• Zettle transactions appear in your PayPal account
• Online PayPal payments and in-person Zettle payments in one place
• Unified reporting across all payment channels
• Single settlement destination

Instant settlement to PayPal:

• Funds available in PayPal account within minutes of transaction
• Can use immediately for online purchases or transfers
• Transfer to bank account when convenient (1-2 days)
• Improves cash flow if you use PayPal regularly

PayPal QR code payments:

• Customers scan QR code and pay via PayPal app
• Only 0.9% fee (vs 1.75% for card payments)
• Good for markets, stalls, where customers have PayPal

Shared customer base:

• If customers already pay you via PayPal online, adding Zettle keeps everything unified
• Customer data consistent across channels
• Simplified accounting and reconciliation

Who Benefits from PayPal Integration?

Businesses that benefit most:

• Already accepting PayPal for online orders
• Process significant volume through PayPal (eBay sellers, online services)
• Use PayPal for business expenses and want instant access to funds
• Prefer PayPal’s buyer/seller protection
• International businesses using PayPal’s multi-currency features

Less valuable if:

• You don’t currently use PayPal
• You prefer bank settlements over PayPal account
• You need features PayPal/Zettle ecosystem doesn’t provide

Settlement Speed

Square:

• Standard settlement: 1-2 business days to bank account
• New accounts: Sometimes 2-3 days initially
• Established accounts: Often improves to next business day
• Instant transfer available: 1.5% fee for immediate bank transfer (up to £10,000)

Zettle:

• To PayPal account: Within minutes (instant)
• PayPal to bank account: 1-2 business days
• Direct to bank (without PayPal): 1-2 business days
• Total time to bank: 1-2 days if using PayPal intermediate step

The verdict: If you use PayPal, Zettle wins on settlement speed – instant access in PayPal account. If you prefer direct bank settlement, both are similar (1-2 days). Square’s instant transfer costs 1.5% which is expensive for emergency access.

Online Payments and E-commerce

Square Online Capabilities

Square Online (free e-commerce site):

• Build complete online store free
• Professional templates
• Inventory synchronized with in-person POS
• Abandoned cart recovery
• SEO tools
• Customer accounts
• Social media integration

E-commerce platform integrations:

• WooCommerce
• Shopify
• Wix
• BigCommerce
• Seamless plugin installations

Online transaction fee: 2.5% + 25p

Zettle Online Capabilities

Zettle E-commerce:

• Basic online store builder (paid plans £9-29/month)
• PayPal Buy Now buttons for websites
• Integration with PayPal Checkout
• Good if already using PayPal for online sales

E-commerce integrations:

• WooCommerce (via PayPal)
• Shopify (via PayPal)
• Less seamless than Square’s native integrations

Online transaction fee: 2.5% + 25p (via PayPal) or 1.75% + 25p (via Zettle invoicing)

The verdict: Square provides superior e-commerce features with free online store builder and better platform integrations. Zettle’s online capabilities rely heavily on PayPal infrastructure which works well if you’re already in PayPal ecosystem but offers less control and features than Square.

Reporting and Analytics

Square Reporting

Available reports:

• Sales summary dashboard
• Sales by product/category
• Sales by time of day/day of week
• Employee performance tracking
• Customer insights (frequency, lifetime value)
• Inventory turnover analysis
• Gross profit margins
• Tax reports
• Custom report builder

Export options:

• CSV export
• Scheduled email reports
• API access for advanced users

Zettle Reporting

Available reports:

• Sales dashboard
• Transaction history
• Sales by product
• Daily/weekly/monthly summaries
• Inventory levels
• Staff sales tracking (basic)
• Tax reports

Export options:

• CSV export
• Integration with PayPal reporting if using PayPal account

The verdict: Square offers more comprehensive and actionable reporting. Zettle provides adequate reports for basic business management but lacks Square’s depth in analytics, customer insights, and advanced metrics. For data-driven business decisions, Square is superior.

Integrations

Square Integrations

Accounting:

• Xero (native, automatic sync)
• QuickBooks (native)
• FreeAgent
• Seamless transaction import

E-commerce:

• WooCommerce
• Shopify
• Wix
• BigCommerce
• Ecwid

Other business tools:

• Mailchimp (email marketing)
• Zapier (automation)
• Deputy (staff scheduling)
• App marketplace: 100+ integrations

Zettle Integrations

Accounting:

• Xero (via third-party connector)
• QuickBooks (limited)
• Less seamless than Square

E-commerce:

• Primarily via PayPal integrations
• Works with platforms accepting PayPal
• Not as native as Square’s approach

PayPal ecosystem:

• All PayPal business tools
• PayPal Invoicing
• PayPal Checkout
• PayPal Working Capital (financing)

The verdict: Square has broader and deeper third-party integrations, especially for accounting and e-commerce. Zettle’s strength is PayPal ecosystem integration – if you’re heavily in PayPal world, Zettle makes sense. Otherwise, Square’s integration options are more comprehensive.

Customer Support

Square Support

Support channels:

• Email (24/7)
• Phone (UK business hours, prioritized for paid plans)
• Live chat
• Help center (extensive articles, videos)
• Community forum

Response times:

• Email: 2-4 hours typically
• Chat: Immediate
• Phone: Immediate for paid plans, may wait on free plan

Quality:

• Generally knowledgeable support staff
• Comprehensive self-help resources
• Sometimes criticized for prioritizing paying customers

Zettle Support

Support channels:

• Email (24/7)
• Phone (UK business hours)
• Help center with guides
• Social media support

Response times:

• Email: 4-8 hours typically
• Phone: Immediate during business hours

Quality:

• Adequate for basic issues
• Can leverage PayPal support for account-related issues
• Mixed reviews – some praise helpfulness, others report slow resolution

The verdict: Square offers more support channels (chat, active forum) and generally faster response times. Zettle’s support is adequate but less comprehensive. Both provide acceptable support for small businesses, though neither exceptional.

When to Choose Square

Choose Square if you:

• Need comprehensive EPOS features: Advanced inventory, employee management, detailed reporting
• Run a restaurant or cafe: Table management, menu customization, kitchen display essential
• Operate retail with significant inventory: Barcode scanning, stock alerts, variant management
• Want strong e-commerce integration: Free online store builder, seamless platform integrations
• Need appointment booking: Square Appointments perfect for salons, spas, personal trainers
• Value extensive integrations: Accounting, marketing, scheduling tools all connect smoothly
• Don’t use PayPal extensively: If PayPal isn’t part of your workflow, Zettle’s main advantage irrelevant
• Want detailed analytics: Customer insights, peak hours, product performance tracking
• Prefer countertop setup: Square Terminal excellent all-in-one EPOS (though Wi-Fi only)

Best for: Restaurants, cafes, retail shops, salons, spas, gyms, businesses selling online and in-person, businesses wanting comprehensive business management platform.

When to Choose Zettle

Choose Zettle if you:

• Already use PayPal extensively: Unified ecosystem, instant PayPal settlement, simplified accounting
• Sell on eBay or PayPal-heavy platforms: Keep all transactions in one place
• Need true mobile capability: Zettle terminals have 4G/cellular (Square Terminal Wi-Fi only)
• Want cheaper hardware: Zettle Reader £29 (vs £39), Zettle Terminal £99 (vs Square £299)
• Prefer simpler setup: Less features = easier to learn, less overwhelming
• Work outdoors or remote locations: Cellular connectivity crucial for markets, festivals, construction sites
• Send invoices frequently: 1.75% + 25p invoice fee (vs Square 2.5% + 25p) saves money
• Value instant access to funds: PayPal account settlement within minutes
• Don’t need advanced restaurant/salon features: Basic inventory and sales tracking sufficient

Best for: eBay sellers, PayPal-heavy online businesses adding in-person sales, market traders, mobile businesses, tradespeople, businesses wanting simplicity, businesses needing cellular connectivity.

Industry-Specific Recommendations

Restaurants and Cafés

Winner: Square

Reasons:

• Table management critical for full-service restaurants (Zettle lacks this)
• Menu customization with modifiers essential
• Kitchen display system for order management
• Split payment functionality
• Detailed menu item performance analytics

Zettle works for very basic cafes or takeaway-only but Square vastly superior for restaurants.

Retail Shops

Winner: Square (most cases)

Reasons:

• More advanced inventory management
• Better variant handling (sizes, colors)
• Stronger reporting on product performance
• Free e-commerce site included

Exception: Small shops selling mainly through eBay/PayPal might prefer Zettle for unified ecosystem.

Tradespeople and Mobile Services

Winner: Zettle

Reasons:

• Cellular connectivity works anywhere (customer homes, job sites)
• Cheaper hardware (£99 Zettle Terminal vs £299 Square Terminal)
• Don’t need complex EPOS features
• Simpler, faster setup

Market Stalls and Event Vendors

Winner: Zettle

Reasons:

• Works with cellular data (no Wi-Fi at markets)
• Cheaper hardware reduces initial investment
• PayPal QR codes offer 0.9% option for PayPal users
• Simple, quick transactions needed

Salons and Spas

Winner: Square

Reasons:

• Square Appointments handles booking + payments seamlessly
• Client database with service history
• Automated reminders
• Employee commission tracking
• Product inventory for retail sales

eBay/Online Sellers Adding In-Person Sales

Winner: Zettle

Reasons:

• Already using PayPal for eBay
• Unified PayPal account for all sales channels
• Instant PayPal settlement
• Simplified accounting (all in PayPal)

Common Misconceptions

Misconception 1: “Zettle is just PayPal’s card reader”

Reality: Zettle is a full payment processing solution with inventory management, reporting, and business features. Yes, it integrates with PayPal, but it’s a comprehensive system, not just a card reader add-on.

Misconception 2: “You need a PayPal account to use Zettle”

Reality: You can use Zettle without PayPal, settling directly to your bank account. PayPal integration is optional but offers advantages (instant settlement, unified reporting) if you choose to use it.

Misconception 3: “Square is too complicated for small businesses”

Reality: Square can be as simple as Zettle – just accept payments without using advanced features. The additional capabilities are available when you grow into them but aren’t mandatory to use.

Misconception 4: “Zettle has worse features because it’s cheaper hardware”

Reality: Zettle’s hardware is cheaper but fully functional. The feature differences are in software (EPOS capabilities) not hardware quality. Both terminals process payments reliably.

Can You Switch Between Them?

Yes, easily:

Both are pay-as-you-go with no contracts:

• No penalties for switching
• No exit fees
• No notice period required

What to know:

• Terminals are provider-locked (can’t use Square terminal with Zettle or vice versa)
• Customer and inventory data don’t automatically transfer (export before switching)
• You’ll need new hardware (or sell old terminals)
• Both settle to bank account so no banking changes needed

Some businesses use both:

• Square in shop (comprehensive EPOS)
• Zettle for mobile sales (cellular connectivity)
• Leverage strengths of each

The Bottom Line

Choose Square if: You need comprehensive business management features, run a restaurant/salon/retail shop, want strong e-commerce integration, value detailed analytics, or don’t use PayPal regularly.

Choose Zettle if: You already use PayPal extensively, need cellular/4G connectivity for mobile work, want cheaper hardware, prefer simpler setup, or sell primarily through eBay/PayPal platforms.

The cost is identical: Both charge 1.75% for in-person payments. Your decision is about features and ecosystem fit, not price.

Decision framework:

• PayPal user + mobile business = Zettle
• Restaurant/salon/retail = Square
• Need 4G connectivity = Zettle
• Need advanced EPOS = Square
• Simple payment processing only = Either works (Zettle slightly simpler)

Reference Data

For comprehensive UK payment processing costs, timelines, and provider comparisons, view our complete UK payment processing data reference guide.

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Square vs Zettle – Frequently Asked Questions

Is Square or Zettle cheaper?

Both charge identical 1.75% transaction fees for in-person card payments with no monthly fees. Zettle hardware is cheaper (£29-£249 vs £39-£299). For invoicing, Zettle charges 1.75% + 25p compared to Square’s 2.5% + 25p, making Zettle cheaper for frequent invoice payments. Overall cost is essentially identical – choose based on features not price.

Does Zettle require a PayPal account?

No, you can use Zettle without PayPal and settle directly to your bank account. However, PayPal integration offers advantages: instant settlement to PayPal account, unified reporting across online and in-person sales, and access to PayPal business tools. If you already use PayPal, integration is valuable. If not, Zettle works fine standalone.

Which has better features for restaurants?

Square is vastly superior for restaurants with table management, menu customization with modifiers, kitchen display system integration, split payments, and detailed menu item analytics. Zettle lacks these restaurant-specific features. For full-service restaurants, Square is essential. Zettle works adequately only for very basic cafes or takeaway-only establishments.

Can Zettle terminals work without WiFi?

Yes, Zettle terminals have 4G/cellular connectivity and work anywhere with mobile signal. This is a major advantage over Square Terminal which requires Wi-Fi or Ethernet. Zettle is better for tradespeople, market traders, outdoor events, or anywhere Wi-Fi isn’t available. Square Terminal only works in locations with reliable Wi-Fi.

Which settles funds faster?

Zettle settles to PayPal account within minutes (instant) if using PayPal integration. Square settles in 1-2 business days to bank account. If you use Zettle with PayPal, you get instant access to funds in PayPal (then transfer to bank when convenient). For direct bank settlement, both are similar at 1-2 days.

Does Square integrate better with accounting software?

Yes, Square has native integrations with Xero, QuickBooks, and FreeAgent with automatic transaction sync. Zettle integrations are less seamless, often requiring third-party connectors. If accounting software integration is important, Square provides smoother experience. Zettle works but requires more manual effort or workarounds.

Which is better for selling online and in-person?

Square is superior for omnichannel selling with free Square Online e-commerce site, seamless platform integrations, and unified inventory across channels. Zettle’s online capabilities rely on PayPal infrastructure which works if you’re in PayPal ecosystem but offers less control and features. For serious e-commerce alongside in-person sales, Square wins decisively.

Can I use both Square and Zettle together?

Yes, some businesses use both to leverage different strengths: Square Terminal in shop for comprehensive EPOS and Zettle for mobile sales with cellular connectivity. Both are pay-as-you-go with no contracts. Managing two systems requires more admin but can optimize costs and functionality for businesses with varied needs.

Which has better customer support?

Square offers more support channels including live chat and active community forum with generally faster response times. Zettle provides adequate email and phone support but fewer channels. Both offer acceptable support for small businesses though neither exceptional. Square edges ahead with more comprehensive self-help resources and support options.

Is Zettle good for eBay sellers?

Yes, Zettle is excellent for eBay sellers adding in-person sales. Since eBay transactions go through PayPal, using Zettle keeps all sales in unified PayPal ecosystem. Instant PayPal settlement, combined reporting, simplified accounting. For eBay/PayPal-heavy businesses, Zettle makes perfect sense. Square works too but doesn’t offer same ecosystem integration.

Related Payment Processing Guides

• SumUp vs Square UK Comparison
• How to Choose a Card Machine Provider
• Best Card Machines for Small Business UK
• Card Machine Provider Comparison UK
• Merchant Account Fees Explained

UK Payment Industry Resources

• Square UK Official Site
• Zettle UK Official Site
• PayPal Business UK
• UK Finance – Payment Standards

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