PayPal POS vs Square 2026 UK | Fees, Costs & Which Is Best? Quick answer
Square is the best all-round card machine for most UK businesses, offering strong POS features and simple pricing
PayPal POS is best for businesses already using PayPal or needing flexible online + in-person payments
👉 Square = best overall
👉 PayPal POS = best for PayPal users
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Transparent, impartial, and data‑driven reviews made by a team of expert humans, never AI generated – here’s exactly how Compare Your Business Costs helps you find the best deals from trusted UK providers: click here
Authored by: Ally Cox (Business Technology & B2B Services Specialist 10+ Years’ Experience)
Reviewed by: James Ward (Telecoms Specialist, 12+ Years Experience)
Last Updated: July 2026
Contents
Paypal POS vs Square Fees Comparison
Best Choice By Business Type
Square Card Machines
PayPal POS Machines
Card Machine Fees Calculator UK Estimate your monthly and annual card processing costs in seconds. Adjust the fields below to see how much your current setup could be costing you.
Pricing model Flat rate Custom / Merchant account
Your Estimated Costs
Estimated monthly fees
£0.00
Estimated annual fees
£0.00
Estimated monthly transactions
0
Potential monthly saving
£0.00
You could save money by switching to a lower-fee provider.
This calculator is an estimate only. Actual card machine costs vary by provider, pricing structure, card mix, sector and contract terms.
Key Takeaways
Both offer no contracts and quick setup
Square has clear flat-rate pricing (1.75%)
PayPal POS fees are slightly higher (~1.75%-1.90%)
Square has better POS and business tools
PayPal offers instant access to funds via PayPal balance
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Paypal POS vs Square Fees Comparison
Feature Square PayPal POS
Transaction fees
1.75%
~1.75%–1.90%
Monthly fee
£0
£0
Contract
No contract
No contract
Setup fee
£0
£0
Payout speed
1–2 days
Instant or 1–2 days
Best Choice By Business Type
Business Type Best Option Why
Sole traders
Square
Simpler pricing
Startups
Square
Easy setup + tools
Retail shops
Square
Strong POS system
Cafés & restaurants
Square
Inventory + staff tools
Online sellers
PayPal POS
PayPal integration
Multi-channel businesses
PayPal POS
Online + in-person
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Square Card Machines Best for: All-round use & growth
Pros
Transparent flat-rate pricing (1.75%)
No monthly fees
Powerful POS system included
Inventory, staff, and reporting tools
Tap to Pay on iPhone (UK supported)
Strong integrations (Shopify, Xero, QuickBooks)
Cons
Slightly higher cost for very low-volume users
Occasional account holds reported
👉 Best for most UK small businesses
PayPal POS 👍 Best for: PayPal ecosystem & flexibility
Pros
Works seamlessly with PayPal accounts
Accepts PayPal, cards, and digital wallets
Instant access to funds via PayPal balance
Tap to Pay on iPhone supported
Good for online + in-person payments
Cons
Slightly higher fees than Square
Less advanced POS features
Hardware pricing can vary
👉 Best for businesses already using PayPal
Feature Comparison
Feature
Square
PayPal POS
Ease of use
⭐⭐⭐⭐⭐
⭐⭐⭐⭐⭐
Pricing clarity
⭐⭐⭐⭐⭐
⭐⭐⭐⭐
POS features
⭐⭐⭐⭐⭐
⭐⭐⭐
Integrations
⭐⭐⭐⭐⭐
⭐⭐⭐⭐
Online payments
⭐⭐⭐⭐
⭐⭐⭐⭐⭐
Scalability
⭐⭐⭐⭐⭐
⭐⭐⭐⭐
Hardware Comparison
Device Square PayPal POS
Basic reader
£19
~£79+
Smart terminal
£149
Varies
POS system
£599
Limited
Tap to Pay
Yes
Yes
👉 Square wins on hardware range and value
Which Is Cheaper? Square is cheaper if:
You want predictable flat-rate pricing
You don’t use PayPal regularly
PayPal POS is better value if:
You already use PayPal for payments
You want instant access to funds
👉 Key insight: Square = better pricing, PayPal = better ecosystem
Which Should You Choose? Choose Square if:
You want the best all-round solution
You need POS, reporting, and integrations
You run a retail, café, or service business
Choose PayPal POS if:
You already use PayPal for your business
You sell online and in person
You want instant access to payments
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FAQs – Paypal POS vs Square Is Square better than PayPal POS?
For most businesses, yes… Square offers better POS features and clearer pricing. PayPal POS is better for PayPal users.
Which is cheaper, Square or PayPal POS?
Square is usually cheaper due to its flat-rate pricing structure.
Do both offer Tap to Pay?
Yes , both support Tap to Pay on iPhone in the UK.
Which pays out faster?
PayPal can offer instant access to funds, while Square typically pays out in 1–2 working days.
Which is better for online businesses?
PayPal POS is better due to its seamless integration with PayPal online payments.
Do both require contracts?
No, both operate on a no-contract, pay-as-you-go basis.
Which is best for cafés?
Square is typically better due to stronger POS features and inventory tools.
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Hi, I’m Ally Cox , a senior copywriter and blogger at CompareYourBusinessCosts.co.uk, the UK’s trusted platform for comparing business services.over a decade of experience in the B2B sector, I specialise in simplifying complex topics like leased lines, VoIP, business energy, HR and payroll solutions, accounting software, and EPOS systems .HR, copywriting, and business operations- from clocking-in systems to card machines and office technology .informed, confident decisions when choosing products and services that improve efficiency and save money.
