PayPal POS Card Machine Review 2026: Fees, Costs, Pros & Cons Quick answer
PayPal POS, formerly known as Zettle by PayPal and iZettle, is a pay-as-you-go card reader and point-of-sale system for UK small businesses.
They are great for to cafés, salons, market traders, pop-ups, mobile businesses, small retailers, sole traders and businesses that already use PayPal.
PayPal POS has no monthly fee, no set-up fee and no lock-in contract for its core card reader service. In-person card and contactless payments are charged at 1.75%, while manual card entry and some online payment options cost more.
Best for: PayPal users, small businesses, mobile sellers, cafés, salons and pop-ups
Less great for: businesses needing the lowest online payment fees, advanced POS features or 24/7 support
Average costs: PayPal Reader from £29 excluding VAT for eligible new business users, additional readers at £69 excluding VAT, and PayPal Terminal from £199 excluding VAT with barcode scanner.
Compare PayPal POS with Square, SumUp, Dojo, LoPay, Worldpay and Clover before choosing a card machine.
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Contents
Benefits of PayPal Pos Card Machines
Downsides of Paypal POS Card Machines
How much does PayPal POS cost
What Does Paypal POS Offer?
Paypal Decision Making Guide
Our Verdict on Paypal
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: July 2026
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Paypal POS At a glance
Feature
PayPal POS, formerly Zettle
Previous names
iZettle, Zettle, Zettle by PayPal
Current name
PayPal POS / PayPal Point of Sale
Best for
Small businesses, sole traders, cafés, pop-ups, salons and PayPal users
Main products
PayPal Reader, PayPal Terminal, POS app, payment links and manual payments
Monthly fee
No monthly fee for the core POS app/card reader service
In-person transaction fee
1.75% for card and contactless payments
Manual card entry fee
3.4% + 20p per transaction
Payment links fee
2.9% + 30p for PayPal payments
Card reader cost
PayPal Reader offer from £29 excluding VAT for eligible new business users
Additional reader cost
Terminal cost
PayPal Terminal with barcode scanner listed at £199 excluding VAT
Contract
No lock-in contract for the core card reader/POS app service
Main strength
Simple PayPal-linked POS and card payments
Main drawback
Some online/manual payment fees are higher than in-person card fees
Key Takeaways
PayPal POS is strongest for small businesses that take mostly in-person payments.
The standard in-person transaction fee is 1.75% for card and contactless payments.
There are no monthly fees, set-up fees or lock-in contracts for the PayPal POS app/card reader service.
Manual card entry is more expensive at 3.4% + 20p per transaction.
Payment links using PayPal payments are listed at 2.9% + 30p, so PayPal POS may be less competitive for businesses that rely heavily on remote payments.
PayPal POS is best compared against Square, SumUp, LoPay, Dojo, Worldpay, Clover and Tyl before signing up.
Is PayPal Zettle now PayPal POS? Yes. PayPal Zettle is now called PayPal POS or PayPal Point of Sale, but the older names are still commonly searched, so customers may still refer to it as:
iZettle
Zettle
Zettle by PayPal
PayPal Zettle
PayPal POS
PayPal Point of Sale
PayPal says existing Zettle by PayPal users can still access their accounts in the same way, and the core products and services are not changing as part of the rebrand, but, for clarity, our review uses PayPal POS as the current name, while referencing Zettle where useful.r
How much does PayPal POS cost in 2026? PayPal POS uses pay-as-you-go pricing, so you usually pay for the hardware and then pay a transaction fee when you take payments.
PayPal POS app
No monthly fee
Set-up fee
No set-up fee
Lock-in contract
No lock-in contract for the core POS service
Card and contactless payments
1.75%
Manual card entry
3.4% + 20p per transaction
Payment links using PayPal payments
2.9% + 30p
First PayPal Reader offer
£29 excluding VAT for eligible new business users
Additional PayPal Readers
PayPal Terminal with barcode scanner
Delivery
PayPal’s UK pricing page lists 1.75% for card and contactless transactions, 3.4% + 20p for manual card entry, and 2.9% + 30p for PayPal payment links. Fees can change, so businesses should check the latest PayPal pricing before signing up!
How Does Each Paypal Product Cater To Its Clients 1. PayPal POS app
The PayPal POS app is the software used to accept payments, manage basic products, track sales and run simple point-of-sale activity.
It is best for:
small shops
cafés
salons
pop-ups
market stalls
mobile businesses
sole traders
businesses already using PayPal
Pros
No monthly fee
No lock-in contract
Simple setup
Useful for product tracking and sales
Works well for PayPal Business users
Cons
Not as advanced as full retail or hospitality POS software
Will not suit larger multi-site businesses
Support reviews are mixed
2. PayPal Reader
The PayPal Reader is the portable card reader previously associated with Zettle.
It is best for:
small businesses taking in-person payments
cafés and food stalls
mobile hairdressers and beauty businesses
tradespeople
pop-up shops
market traders
events businesses
Pros
Low upfront cost for eligible new users
Portable
Simple to use
Good for contactless, chip and PIN, and mobile wallet payments
Works with the PayPal POS app
Cons
Requires a connected phone or tablet
Requires internet connection
Less suitable for high-volume businesses needing a full till system
Additional readers cost more than the first-reader offer
3. PayPal Terminal
The PayPal Terminal is a more advanced all-in-one payment device.
It is best for:
busy cafés
salons
small retailers
food and drink businesses
mobile businesses that want a standalone terminal
businesses wanting a more professional customer-facing device
Pros
More complete than a basic card reader
Touchscreen terminal
Better for frequent in-person payments
PayPal lists a version with barcode scanner
More professional than using a phone and reader combination
Cons
Higher upfront cost
More expensive than a basic reader
Can be too much for occasional sellers
Still not as advanced as some dedicated hospitality or retail POS systems
PayPal’s UK hardware page currently lists the PayPal Terminal with barcode scanner at £199 excluding VAT, with delivery fees applying.
PayPal POS vs Square, SumUp and LoPay
Provider Best for Watch out for
PayPal POS
PayPal users and small in-person businesses
Higher fees for manual card entry and some payment links
Square
Strong free POS tools and simple card payments
Not always cheapest for every business
SumUp
Simple card readers and easy setup
Fewer advanced software features than some alternatives
LoPay
Low fees and flexible payout options
Newer provider with fewer advanced integrations
Dojo
Growing businesses and stronger support-led sales
Pricing may depend on business profile
Worldpay
Established merchant services and larger businesses
Fees and contracts can be more complex
Clover
Retail and hospitality POS hardware
Monthly costs can be higher
Verdict
Who is PayPal POS best for?
Business type Is PayPal POS a good fit? Why
Sole traders
Yes
Simple setup, no monthly fee and portable payment options
Cafés
Yes
Good for simple in-person payments
Salons and barbers
Yes
Works well for appointments, tips and face-to-face payments
Market traders
Yes
Pop-up shops
Yes
No lock-in contract makes it flexible
Mobile businesses
Yes
Portable reader and app-based setup
Small retailers
Maybe
Good for simple POS needs, but compare Square and Clover
Restaurants
Maybe
Suitable for small venues, but larger venues may need stronger POS tools
Online-heavy businesses
Less likely
Payment link and manual entry fees may be higher
Multi-site businesses
Less likely
May need more advanced reporting and management tools
How to Purc hase the PayPal POS Card Machine
You can buy their readers via their website, here .
Amazon also stock their readers here .
You can also find them on Card Pay Accept here .
Our verdict on PayPal POS in 2026 PayPal POS is a great little card machine option for UK small businesses that want simple in-person payments without monthly fees or a long contract, and is especially useful for businesses already using PayPal, as well as cafés, salons, pop-ups, market traders, mobile businesses and sole traders.
Its biggest strengths are simple pricing, PayPal integration, no monthly fee, no lock-in contract and easy setup. Its main weaknesses are higher fees for some non-face-to-face payment methods, mixed customer support feedback and fewer advanced POS features than some larger retail or hospitality systems.
Choose PayPal POS if:
you already use PayPal
you mainly take in-person payments
you want a low-commitment card reader
you do not want monthly POS fees
you run a small shop, café, salon, stall or mobile business
Consider alternatives if:
you need the lowest possible transaction fees
you take lots of payment links or manual payments
you need advanced hospitality or retail POS features
you want more hands-on account management
you process high monthly card turnover
Overall, PayPal POS is one of the easiest card machine options for small UK businesses, but it is worth comparing against Square, SumUp, LoPay, Dojo and Worldpay before choosing.
PayPal POS Card Machine FAQs Is PayPal Zettle now PayPal POS?
Yes. Zettle by PayPal is now called PayPal POS or PayPal Point of Sale. PayPal says the core products and services are not changing, but product names are moving under the PayPal brand.
Is PayPal POS the same as iZettle?
Yes. iZettle became Zettle by PayPal, and Zettle by PayPal is now PayPal POS. Many customers still use the older names when searching.
How much does PayPal POS charge per transaction?
PayPal POS charges 1.75% for card and contactless payments. Manual card entry is listed at 3.4% + 20p per transaction.
Does PayPal POS have monthly fees?
No. PayPal POS has no monthly fee for the core app/card reader service. The Google Play listing also states there are no monthly fees, no set-up costs and no lock-in contracts.
How much does the PayPal Reader cos t?
PayPal lists one PayPal Reader at £29 excluding VAT for eligible new business users, subject to availability. Additional readers are listed at £69 excluding VAT.
How much does the PayPal Terminal cost?
PayPal’s UK hardware page lists the PayPal Terminal with barcode scanner at £199 excluding VAT, with delivery fees applying.
Is PayPal POS good for small businesses?
Yes. PayPal POS is good for small businesses that take in-person payments and want simple pricing, no monthly fee and a recognisable payment brand.
Is PayPal POS good for cafés and salons?
Yes. PayPal POS can work well for cafés, salons, barbers, beauty businesses and small service businesses that mainly take face-to-face payments.
Is PayPal POS cheaper than Square?
It depends on your payment mix. PayPal POS has a 1.75% in-person transaction fee, but manual entry and PayPal payment link fees are higher. Square may be better for some businesses that want broader POS features.
Is PayPal POS cheaper than SumUp?
PayPal POS and SumUp are both popular low-commitment card reader providers. The cheaper option depends on hardware cost, transaction volume, payout needs and whether you need POS features.
Does PayPal POS work offline?
Card machines generally need an internet connection to authorise payments. PayPal POS is best used with a stable WiFi, 4G or mobile data connection.
What are the main PayPal POS alternatives?
The main PayPal POS alternatives include Square, SumUp, LoPay, Dojo, Worldpay, Clover, Tyl by NatWest, Stripe Terminal, Takepayments and Elavon.
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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.
