Square vs PayPal POS 2026 UK | Fees, Costs & Best Option Quick answer
Square is the better all-round payment solution for most UK businesses thanks to stronger POS features, better reporting, and more flexibility.
PayPal POS (formerly Zettle) is best for businesses already using PayPal or needing simple, no-frills payments with no monthly fees.
👉 Square = best overall
👉 PayPal POS = best for PayPal users
If you would like to learn more about merchant service providers, you can do so here .
Contents
Square vs PayPal POS: Fees
Square vs PayPal POS: Features
Best Choice by Business Type
Pros & Cons
Our Verdict
How do we work?
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: March 2026
For a comprehensive comparison, use our comparison tool here today.
Key Takeaways
Both offer no contracts and fast setup
Square has stronger POS and business tools
PayPal POS has tighter PayPal integration
Both charge around 1.75% per transaction
Square is more scalable for growing businesses
PayPal POS is simpler but more limited
Square vs PayPal POS: Fees Comparison (UK 2026)
Feature Square PayPal POS
In-person payments
1.75%
1.75%
Online payments
1.4% + 25p
~2.5%
Monthly fees
£0
£0
Setup fee
£0
£0
Contracts
No
No
👉 Winner: Square (lower online fees + better overall value)
Square vs PayPal POS: Features Comparison (UK 2026)
Feature Square PayPal POS
POS system
Advanced
Basic
Inventory management
Strong
Limited
Reporting & analytics
Detailed
Basic
Integrations
Extensive
Moderate
Payment methods
Broad
Broad
Ecommerce support
Strong
Limited
👉 Winner: Square (far more complete system)
What Is Square? Square is a full payment ecosystem, offering:
Card machines
POS software
Online payments
Invoicing
Business analytics
👉 It’s designed to scale with your business.
What Is PayPal POS? PayPal POS (formerly Zettle) is a simple, pay-as-you-go payment solution that:
Focuses on in-person payments
Integrates with PayPal accounts
Requires minimal setup
👉 It’s built for simplicity, not complexity.
Best Choice by Business Type
Business Type Best Option
Small / startup
PayPal POS
Retail shop
Square
Café / hospitality
Square
Mobile / pop-up
Either
Online business
Square
Growing business
Square
👉 Square wins in most scenarios
Ease of Use Both platforms are easy to use, but
PayPal POS = slightly simpler
Square = more powerful (but still user-friendly)
👉 Winner: it’s a draw!
Payouts & Cash Flow
Feature Square PayPal POS
Standard payouts
Next day
1-3 days
Instant payouts
Available (fee)
Limited
Where funds go
Bank account
PayPal account
Scalability This is where their biggest difference lies:
Square → grows
PayPal POS → best for small, low-volume
👉 High-volume businesses will usually outgrow PayPal POS.
Pros & Cons Square Pros
Better POS system
Strong reporting
Lower online fees
Scales with your business
Square Cons
Slightly more complex than PayPal
PayPal POS Pros
Very easy to use
No monthly fees
Great for PayPal users
PayPal POS Cons
Limited features
Slower payouts
Higher online fees
Not good for scaling
When Should You Choose Square? Choose Square if you:
Want a full POS system
Plan to grow
Need better reporting and integrations
Sell both online and in-person
When Should You Choose PayPal POS?
Choose PayPal POS if you:
Already use PayPal
Want something simple and quick
Have low transaction volume
Only take in-person payments
Our Verdict Square is the clear winner for most UK businesses.
While PayPal POS is a good entry-level option, Square offers:
Better features
Better scalability
Better long-term value
👉 Square = best overall choice
👉 PayPal POS = best for simplicity
FAQs Is Square better than PayPal POS?
Yes! for most businesses, Square offers more features and better scalability.
Are Square and PayPal POS fees the same?
For in-person payments, yes (around 1.75%). However, Square is cheaper for online payments.
Which is better for small businesses?
Both work, but PayPal POS is simpler while Square offers more growth potential.
Can I switch between providers?
Yes, many businesses start with PayPal POS and later move to Square or a merchant account.
Which has faster payouts?
Square typically pays out faster and directly to your bank account.
Is PayPal POS still called Zettle?
PayPal has rebranded Zettle into its broader POS offering, but many still use the old name.
What’s the best alternative to both?
For high-volume businesses, a merchant account (e.g. Elavon, Worldpay, Dojo) is usually cheaper.
Related Merchant Account Guides If you’re researching merchant accounts and card payment processing, the guides below explore specific providers, use cases, costs and common questions in more detail.
Merchant Account Basics & FAQs
Understand how merchant accounts work and what to expect before signing up:
Major UK Merchant Account Providers
Detailed reviews of leading UK merchant account providers and acquirers:
Payment Providers & Alternatives
Explore pay-as-you-go and hybrid payment providers often compared with merchant accounts:
Card Payments, EPOS & POS Context
Learn how merchant accounts fit into wider payment and EPOS setups:
Next Step: Compare Merchant Accounts
If you want tailored pricing based on your turnover, industry and risk profile, use our comparison tool to review UK merchant account providers side by side.
👉 Compare merchant accounts →
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.
