PayPal POS Card Machine Review 2026: Fees, Costs, Pros & Cons Quick answer
PayPal POS is a pay-as-you-go card payment and point-of-sale system aimed at UK small businesses, sole traders and mobile sellers and has been previously known as:
iZettle
Zettle
Zettle by PayPal
Current PayPal POS pricing includes:
Card Reader: £29 + VAT for the first eligible readerAdditional Readers: £69 + VAT eachPayPal Terminal: £149 + VATTerminal with barcode scanner: £199 + VATCard-present payments: 1.75%Manual card entry: 3.4% + 20pPayment links using PayPal: 2.9% + 30pPayment links using cards / supported wallets: 1.2% + 30pCore POS app: no monthly or setup fee
Our view: PayPal POS is strongest for small businesses that take most payments face to face and want a low-commitment setup. If you take a lot of telephone, manual or remote payments, compare the higher transaction fees carefully.
Business type Our view
Sole trader
Strong fit
Market trader / pop-up
Strong fit
Mobile business
Strong fit
Small café
Strong fit
Salon / barber
Strong fit
Small retailer
Good fit
High card turnover
Compare merchant pricing
Remote-payment-heavy business
Compare alternatives carefully
Advanced restaurant / multi-site POS
Probably too basic
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How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, pricing data and UK business buying criteria. See how Compare Your Business Costs works .
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Reviewed by: James Ward – Telecoms Specialist, 12+ years’ experience.
Last Updated: October 2026
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Use our calculator and comparison guide to estimate monthly fees, transaction costs and whether a different provider could be cheaper.
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Card Machine Fees Calculator Use the calculator below to estimate your PayPal POS processing cost and compare it with another card-machine quote.
For standard PayPal POS in-person payments, enter:
percentage fee: 1.75%per-transaction fee: £0monthly fixed fee: £0
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This calculator provides an estimate only. Actual costs vary by payment type, turnover and provider.
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
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Estimated annual fees
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Potential monthly saving
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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
PayPal POS currently charges 1.75% for card-present payments.
The core POS service has no monthly or setup fee.
The first eligible PayPal Reader currently costs £29 + VAT.
Additional Readers currently cost £69 + VAT.
PayPal Terminal currently costs £149 + VAT.
The Terminal with built-in barcode scanner costs £199 + VAT.
Manual card entry costs 3.4% + 20p.
PayPal payment links cost 2.9% + 30p.
Standard card/wallet payment links currently cost 1.2% + 30p.
Tap to Pay lets compatible phones accept contactless payments without extra hardware.
PayPal offers custom POS pricing for qualifying higher-volume businesses.
The main alternatives are Square, SumUp, LoPay, Dojo, Tyl and Worldpay.
PayPal POS at a Glance
Category PayPal POS
Previous name
Zettle/iZettle
Monthly POS fee
£0
Setup fee
£0
In-person transaction fee
1.75%
Manual entry
3.4% + 20p
PayPal payment links
2.9% + 30p
Card / wallet payment links
1.2% + 30p
First Reader
£29 + VAT for eligible new users
Additional Reader
£69 + VAT
Terminal
£149 + VAT
Terminal + barcode scanner
£199 + VAT
Tap to Pay
Yes
Is Zettle Now PayPal POS? Yes.
PayPal has rebranded Zettle by PayPal as:
PayPal Point of Sale / PayPal POS.
The older names are still heavily searched, so customers may still refer to the product as:
iZettle
Zettle
PayPal Zettle
PayPal states that existing Zettle accounts continue to operate under the new branding.
How Much Does PayPal POS Cost?
Cost Current published price
POS app
£0/month
Setup
£0
Card-present transactions
1.75%
Manual card entry
3.4% + 20p
PayPal payment links
2.9% + 30p
Card/wallet payment links
1.2% + 30p
First Reader
£29 + VAT
Additional Reader
£69 + VAT
Terminal
£149 + VAT
Terminal + scanner
£199 + VAT
Our View on PayPal POS Pricing The in-person pricing is simple.
You pay 1.75% when you take a standard face-to-face payment.
There is no normal monthly software fee to recover first, which makes it attractive for:
seasonal sellers
start-ups
businesses with irregular turnover
But the economics change if much of your revenue comes through:
manual card entry
PayPal payment links
Example: £5,000 Monthly Card Turnover At 1.75%:
£5,000 × 1.75% = £87.50/month
Annualised £1,050 in processing fees.
Illustrative example using the current standard card-present rate.
Example: £20,000 Monthly Card Turnover At 1.75%: £350/month
or approximately: £4,200/year.
Our View
This is the point where comparing lower-rate merchant pricing becomes more important.
A provider with a monthly terminal fee but lower processing percentage may cost less overall.
See our Lowest Fee Card Machines guide .
PayPal Reader The PayPal Reader is the simplest dedicated hardware option.
Current pricing:
first eligible Reader: £29 + VATadditional Readers: £69 + VAT
The Reader pairs with a:
using Bluetooth.
It accepts:
chip and PIN
contactless cards
Apple Pay
Google Pay
Samsung Pay
Best For
sole traders
mobile businesses
market stalls
small cafés
salons
PayPal Terminal The PayPal Terminal is the more self-contained option.
Current price £149 + VAT.
Unlike the Reader, it does not need a separate smartphone or tablet to run the POS app, and current hardware includes:
Wi-Fi
mobile data
integrated POS software
contactless
chip and PIN
PayPal says mobile data usage is included with the Terminal purchase.
Our View
The £149 Terminal is the more relevant comparison for businesses taking payments all day.
The £29 Reader is better for businesses prioritising minimum upfront cost.
Terminal With Barcode Scanner PayPal also currently sells a terminal with built-in barcode scanner for £199 + VAT.
This is more relevant to:
retailers
product-led businesses
than cafés, tradespeople or salons.
Tap to Pay PayPal POS now also supports Tap to Pay on compatible phones.
This allows eligible businesses to accept contactless payments using the phone itself without buying separate card-reader hardware.
Our View
Tap to Pay is now one of the strongest reasons to consider PayPal POS for an occasional or mobile seller.
It can remove the need to buy even the £29 Reader.
PayPal POS Payment Fees Card & Contactless
1.75%
Manual Card Entry
3.4% + 20p
Payment Links – PayPal
2.9% + 30p
Payment Links – Cards/Alternative Wallets
1.2% + 30p
Our View: Remote Payments Need a Separate Comparison A business should not look at the 1.75% headline fee if a meaningful share of payments are taken remotely.
For example – A £100 manually entered transaction would currently cost £3.60.
A £100 standard in-person transaction would cost £1.75.
The payment channel nearly doubles the cost.
PayPal POS Software The POS app provides functionality including:
taking payments
product management
inventory tracking
sales reporting
checkout
Our View
This is enough for many small businesses.
But it should not be confused with a full advanced retail/hospitality EPOS system.
Businesses needing:
complex stock purchasing
multi-site reporting
advanced restaurant tables
kitchen displays
deep staff management
should compare specialist EPOS.
See our EPOS Systems guide .
PayPal POS Pros & Cons
Pros Cons
No monthly core POS fee
1.75% is not the lowest in-person rate
No setup fee
Manual entry is expensive
Low-cost Reader
Some payment-link routes cost more
£149 standalone Terminal
Less advanced than specialist EPOS
Tap to Pay
Reader needs phone/tablet
Strong PayPal ecosystem
High-volume merchants should compare bespoke pricing
Simple PAYG pricing
Support may be less hands-on than traditional merchant providers
Who Is PayPal POS Best For? Sole Traders
Strong fit because there is:
low upfront cost
no monthly core POS fee
Tap to Pay
Market Traders & Pop-Ups
Strong fit for irregular or seasonal selling.
Mobile Businesses
Reader or Tap to Pay can be more practical than renting a traditional terminal.
Cafés
Good for smaller cafés with simple counter service.
Busier venues should compare more advanced EPOS.
Salons & Barbers
A good fit where the main requirement is:
face-to-face payment
simple POS
Retailers
Good for relatively simple retail – the barcode-scanner Terminal may improve the fit.
Who Should Compare Alternatives? Compare other providers if:
you process high monthly card turnover
you need advanced EPOS
you take lots of telephone payments
you need complex online checkout
you want dedicated account management
you operate multiple complex sites
PayPal POS vs Square
PayPal POS Square
In-person rate
1.75%
1.75%
Core monthly POS fee
£0.00
£0
Entry reader
£29 + VAT promotional first-reader price
£19 + VAT
Standalone terminal
£149 + VAT
£149 + VAT
POS ecosystem
Simple
Broader
Our View
The basic transaction economics are remarkably similar.
Square generally has the stronger broader POS ecosystem.
PayPal becomes more attractive if you already use:
PayPal Business
PayPal online payments
and want a more unified account.
See our PayPal POS vs Square comparison .
PayPal POS vs SumUp SumUp currently charges 1.69% PAYG
for standard in-person processing.
PayPal POS currently charges 1.75%.
Our View
The difference is small at low turnover.
At £5,000/month:
PayPal POS at 1.75% = £87.50
SumUp PAYG at 1.69% = £84.50
Difference £3/month.
Hardware, software and workflow may therefore matter more than the headline rate.
See our SumUp vs PayPal POS comparison .
PayPal POS vs LoPay LoPay competes more aggressively on transaction pricing.
PayPal competes more on:
brand recognition
PayPal integration
POS ecosystem
Our View
If your main goal is the lowest possible processing fee compare LoPay.
If your main goal is simple POS + PayPal ecosystem then PayPal deserves the stronger shortlist.
See our LoPay Card Reader review .
PayPal POS vs Dojo Dojo is more relevant once a business wants:
traditional merchant pricing
stronger support
integrated terminals
higher-volume card processing
PayPal is better suited to low-commitment PAYG selling.
See our Dojo Card Machine review .
PayPal POS vs Worldpay Worldpay is a more traditional merchant-service proposition, it’s worth comparing once:
turnover becomes consistent
multiple terminals are needed
negotiated rates become valuable
See our Worldpay Card Machine review .
Does PayPal POS Need Internet? PayPal POS is designed to operate with internet connectivity.
The Reader uses a connected phone/tablet, while the Terminal includes:
Wi-Fi
mobile-data capability
Our View
Businesses that depend heavily on card payments should still consider:
Wi-Fi quality
mobile backup
what happens during an outage
PayPal POS Hardware Warranty PayPal currently states that POS hardware includes a 12-month warranty -t hat applies from the date the product is shipped.
High-Volume Pricing PayPal currently invites businesses with high-volume sales to request custom POS pricing.
Our View
If your business processes meaningful monthly card turnover, do not assume you must remain on the standard 1.75% rate indefinitely.
Compare:
PayPal custom pricing
SumUp tailored pricing
Tyl
Dojo
Elavon
Worldpay
Our Verdict: Is PayPal POS Worth It? Yes. PayPal POS remains one of the simplest card-payment options for small UK businesses.
Its strongest areas are:
£0 core monthly POS fee
low-cost Reader
£149 standalone Terminal
Tap to Pay
PayPal integration
simple 1.75% card-present pricing
Its biggest weaknesses are:
3.4% + 20p manual card-entry fee
higher fees on some payment-link transactions
less advanced POS functionality than specialist platforms
Our recommendations:
Sole trader: strong shortlistMobile seller: strong shortlistMarket trader: strong shortlistSmall café: strong shortlistSmall retailer: good shortlistHigh-volume merchant: compare tailored merchant pricingRemote-payment-heavy business: compare alternatives carefullyComplex hospitality/multi-site: compare specialist EPOS
PayPal POS is strongest when the majority of payments are taken face to face and you value low fixed costs more than having the absolute lowest transaction percentage.
Compare PayPal POS & Card Machine Providers
Frequently Asked Questions Is Zettle now PayPal POS?
Yes. Zettle by PayPal has been rebranded as PayPal Point of Sale / PayPal POS. Existing Zettle users continue to use the service under the new branding.
How much does PayPal POS cost?
The core POS service has no monthly or setup fee. Standard card-present transactions currently cost 1.75%.
How much is the PayPal Reader?
The first eligible Reader currently costs £29 + VAT for new qualifying business users. Additional Readers cost £69 + VAT.
How much is the PayPal Terminal?
The standard PayPal Terminal currently costs £149 + VAT. The version with built-in barcode scanner costs £199 + VAT.
Does PayPal POS have monthly fees?
No monthly fee applies to the core POS app/service. Transaction and hardware charges still apply.
How much does PayPal charge per card payment?
Standard card-present transactions currently cost 1.75%.
How much is manual card entry?
Manual card entry currently costs 3.4% + 20p per transaction.
How much do PayPal POS payment links cost?
PayPal payment links currently cost 2.9% + 30p, while standard card and supported alternative-wallet payment links cost 1.2% + 30p.
Can I use my phone as a PayPal card reader?
Yes. PayPal POS supports Tap to Pay on compatible phones, allowing eligible businesses to accept contactless payments without separate reader hardware.
Does the PayPal Reader need a phon e?
Yes. The Reader connects by Bluetooth to a compatible smartphone or tablet running the POS app.
Does the PayPal Terminal need a phone?
No. The Terminal runs the PayPal POS software directly and includes Wi-Fi and mobile-data connectivity.
Is PayPal POS cheaper than Square?
Both currently charge 1.75% for standard UK in-person card transactions, so the better choice depends on hardware, POS functionality and the rest of your payment mix.
Is PayPal POS cheaper than SumUp?
SumUp’s standard PAYG rate is currently slightly lower at 1.69%. The difference may be small at low turnover, so compare hardware and software as well.
What are the best PayPal POS alternatives?
Alternatives include Square, SumUp, LoPay, Dojo, Tyl, Worldpay, 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.
