Zettle Review: Is It Right for Your Business?

Zettle by PayPal is a zero-contract payment processing provider that offers fixed in-person transaction fees of 1.75%. It offers clear pricing and some of the best card machines for on-the-go selling, making it a good option for low-volume sellers or new businesses, such as market vendors or tradespeople.

On top of payment processing, Zettle offers free EPOS software and affordable hardware, as well as solutions for taking online payments.

This doesn’t mean Zettle is perfect. Its high transaction fees mean it might not be the best option for high-volume sellers, plus it’s not a very scalable solution.

We’ll get into why in our review. But if you’d like to skip ahead and just be matched with a payment processing provider, we can help. Just tell us about your business using our free quote tool and we’ll match you with suitable providers who’ll contact you with tailored quotes.

Zettle Review: Summary

Zettle offers an easy-to-use payment processing app and lightweight card machines. It also doesn’t charge monthly fees, and has fixed transaction fees, making it a great option for small businesses that need portable equipment and don’t have a big budget.

Here’s a quick summary of what Zettle has to offer:

What products and services does Zettle offer?

Zettle by PayPal is a payment processing service that offers small businesses a variety of tools for taking payments in person and online. These include:

• Card machines (choose from three models)
• EPOS app and software
• EPOS countertop terminal and accessories
• Invoicing tool
• Online payment gateway

Zettle’s Pros and Cons

Here’s a quick summary of Zettle’s pros and cons:

✔️ No monthly fees

Zettle doesn’t charge any monthly fees, making it a great option for small businesses with a low turnover, or casual or seasonal sellers. There are no monthly account fees or monthly card machine rental fees, since Zettle sells its card machines outright. It’s not the only provider to do this, with Square, SumUp, and Stripe all doing the same.

Monthly fees and card machine rental fees can cost between £10 and £30 per month, each, so you’ll be saving a lot with Zettle.

✔️ Free EPOS system

Zettle offers businesses a forever-free EPOS app which runs on iOS and can be used on iPads or iPhones. This provides small businesses with an affordable way to build a complete solution for taking payments and managing sales and products, since EPOS software typically costs from £50 per month.

Once again, Zettle isn’t the only provider to offer a free EPOS system, with Square and SumUp offering the same. However, Zettle only offers a free version of its EPOS software, whereas Square and SumUp also offer more advanced paid versions.

✔️ Plentiful third-party integrations

Zettle integrates with 30 software partners, and its card machines work with 17 different EPOS systems, including heavy hitters such as Lightspeed and Epos Now. This makes Zettle a great option if you already have an EPOS system and want to use Zettle only for payment processing.

Not all payment processors work with third-party EPOS systems, with popular Zettle alternative Square restricting users to its own EPOS software.

Besides that, it links up with nine ecommerce platforms and shopping carts, including Shopify and WooCommerce, and four accounting powerhouses, including Xero and QuickBooks. For context, competitor Tyl by NatWest only has four ready-made plugins for ecommerce platforms, fewer than Zettle offers.

❌ No offline payments

Zettle doesn’t have an offline mode, which means you can’t continue to process payments with its card machines or its EPOS system if you lose internet or broadband connection.

Several competitors do offer an offline mode, including Square, SumUp, Tyl by NatWest, and takepayments. It’s an especially useful tool for businesses that operate in areas with poor connectivity, such as at a rural festival or market.

❌ Transaction fees can build up

Although Zettle doesn’t charge any monthly fees, its 1.75% transaction fee for in-person payments is higher than some competitors. Most providers that charge zero-monthly fees, like Zettle, tend to have high transaction fees, but SumUp manages to charge only 1.69%, while Tyl by NatWest charges 1.39% + £0.05.

If you’re taking regular card payments or have a high turnover, these fees can add up over time, and you might be better off with a provider that charges monthly fees but custom transaction fees, such as takepayments.

❌ No card machines with built-in printer

Zettle is one of the few payment processing providers we researched that doesn’t offer a card machine with a built-in printer, although its £149 + VAT PayPal Terminal can be combined with a charging dock and printer for an additional £89 + VAT.

Nevertheless, that doesn’t replace devices such as Square’s Square Terminal, or takepayments’ takepaymentsplus, which are touchscreen card machines with built-in receipt printers, perfect for table service at restaurants or cafes.

How Much Does Zettle Cost?

Zettle’s pricing is very transparent. It charges no monthly fees, in-person transaction fees of 1.75% and its card machines cost from £29 + VAT.

Here’s a quick summary:

For a full breakdown of Zettle’s pricing, see our in-depth review.

Overall, Zettle offers decent value for money for small businesses, especially those with a low monthly transaction volume that want to avoid the hefty monthly fees charged by more traditional merchant service providers.

Zettle’s in-person and online transaction fees are in line with industry averages, but that doesn’t mean you can’t get cheaper fees with competitors. SumUp, for example, charges lower in-person fees of 1.69%, while Square charges cheaper fees of 1.4% + £0.25 for online transactions.

When it comes to Zettle’s card machines, its starting price of £29 + VAT for its new PayPal Reader is cheaper than most competitors. It’s only beaten by the £19 + VAT Square charges for its Square Reader.

What Are Zettle’s Card Machines Like?

Zettle has three card machines:

• Zettle Card Reader 2: A portable card machine with a PIN pad and small screen that needs to be paired with the Zettle app, or third-party EPOS software, in order to take payments.
• PayPal Reader: A portable card machine with a PIN pad and a wide screen that needs to be paired with the Zettle app in order to take payments.
• PayPal Terminal: A standalone card machine that doubles as a handheld EPOS device, with touchscreen and optional barcode scanner and printer.

The Zettle Card Reader 2

The Zettle Card Reader 2 is Zettle’s most popular card machine and its original design. At £49 + VAT, it’s a moderately priced option, although competitors Square and SumUp offer cheaper card machines, costing £19 and £34 respectively.

The Zettle Card Reader 2 is a very lightweight card reader, and its small size and eight-hour battery life make it a good option for taking payments on the go.

We especially liked the fact that it includes a traditional button PIN pad, so customers get a clear response when entering their PIN. This is something many new compact card machines are missing, as rivals SumUp, Revolut, and Square opt for flat PIN pads or touchscreens.

These features helped get the Zettle Card Reader 2 onto our list of the best card machines for small businesses.

That said, one minor inconvenience is that the Zettle Card Reader has to be used with the Zettle app on your phone via Bluetooth. This could make processing transactions while standing slightly awkward, because you need to use both hands. Luckily, during testing, we found that the Zettle app was very easy to navigate, since it didn’t have an overwhelming number of tabs, and used clear signposting.

If you’d prefer a standalone card machine that doesn’t require an app, there’s Zettle’s £149 + VAT PayPal Reader. Most competitors, including SumUp, Square, and Tide, also offer standalone card machines.

The PayPal Reader

The PayPal Reader is Zettle’s newest card reader, only launched this year. Your first reader will cost just £29 + VAT, making it one of the cheapest options on the market, only beaten by the £19 + VAT Square Reader. However, any additional readers will cost £69 + VAT, which is on the expensive side. You can also add a charging dock for £29 + VAT.

The main difference between the PayPal Reader and the Zettle Card Reader 2 is size. The new PayPal Reader is slightly longer than the Zettle Reader 2 to make room for its larger screen. This design change means it’s easier for customers to read instructions on the PayPal Reader, compared with the Zettle Card Reader 2.

Other than that, the PayPal Reader has the same eight-hour battery life as the Zettle Card Reader 2, a button PIN pad, and needs to be paired with the Zettle app on your phone via Bluetooth.

The PayPal Terminal

The PayPal Terminal, which used to be called the Zettle Terminal, is Zettle’s only standalone card reader. At £149 + VAT, it’s an expensive option, with SumUp and Tide charging less for their standalone readers (both charge £79 + VAT for the first reader).

It also comes with an optional charging dock and a receipt printer combo, for £89 + VAT, and you can add a built-in barcode scanner to your PayPal Reader for an additional £50 + VAT.

That said, the PayPal Terminal is more than just a card machine; it’s a handheld EPOS device, and users can access Zettle’s complete EPOS software directly from the PayPal Terminal. This isn’t a feature that SumUp and Tide’s card machines have.

Unlike the PayPal Reader and Zettle Card Reader 2, the PayPal Reader works alone with a Wi-Fi or 4G connection thanks to a built-in SIM card. Plus, since it doesn’t have a built-in printer, it’s very slim for a standalone card machine, roughly the size and width of a smartphone. This makes it an equally good option for taking payments on the go, or from a counter with the charging dock and receipt printer combo.

What payment methods does Zettle accept?

All Zettle card machines accept the following payment methods:

• Contactless and chip and PIN
• Visa, Mastercard, Maestro, Amex, JCB, UnionPay, Diners Club, Discover, Visa Electron, V Pay
• Google Pay, Apple Pay, Samsung Pay

Zettle accepts a very wide variety of card types – more than competitors Square and SumUp. Being able to take cards from providers like Union Pay, that are popular outside the UK, puts you at an advantage if you have international customers.

Is Zettle’s EPOS System Worth It?

Zettle offers one of the best free EPOS systems on the market, and the iPad-based system is perfect for hospitality businesses that need a compact solution, such as food trucks.

Unlike its key rivals, Square and SumUp, Zettle only offers free EPOS software and has no paid version. This does make it slightly less scalable than its competitors, but Zettle is a great choice if you’re a business that’s just starting out and you want a quick and simple free EPOS system.

It’s the easiest EPOS system to use out of all the ones we tested, making it a great option for those who have never used an EPOS system before. Plus, it packs helpful reporting features that allow you to track sales performance and manage inventory by tracking stock levels and receiving low stock alerts.

Even though Zettle’s EPOS software is app-based, it does sell hardware besides card machines. For between £169 and £619 + VAT, you can buy a kit that includes, at minimum, an iPad stand and the Zettle Reader 2, but can extend to include a printer, cash drawer, and barcode scanner.

This is less than you’d pay if you purchased each of these items separately, making Zettle’s hardware great value, especially for new businesses starting from scratch.

That said, Zettle’s hardware range isn’t extensive and is missing items such as kitchen display systems (KDSs), a must for busy restaurants, or fully fledged countertop devices. If you want a provider with a more extensive range of hardware, we’d recommend Square or Clover. Both are also very scalable options.

What Types of Online Payments Are Available with Zettle?

Zettle offers businesses several ways to take payments online and remotely:

• Online payment gateway (free, except for a 2.5% transaction fee)
• Payment links (free, except for a 2.5% transaction fee)
• Invoices (free, except for a 2.5% transaction fee)

Zettle offers a decent range of tools for taking payments online and remotely. However, it’s missing a few features – namely, Zettle does not offer an online store builder, just a payment gateway you can integrate into an existing website. Most traditional payment processors, such as Worldpay, Barclaycard, and takepayments don’t offer online store builders, but Zettle’s closest rivals, SumUp and Square, both do.

Additionally, Zettle does not have a virtual terminal, a secure gateway used for taking keyed-in payments, such as those done over the phone. Most contract-free, non-traditional payment processors – of which Zettle is one – don’t offer this tool. However, close Zettle rival Square does.

Online payment gateway

Zettle’s online payment gateway easily integrates with nine different ecommerce platforms and shopping carts, including Shopify, BigCommerce, and WooCommerce. You can start selling online quickly by using the Zettle app to connect with any of these nine options, which earned Zettle a spot on our list of the best payment gateway providers.

That’s better than competitor Tyl by NatWest, which only offers four ready-made integrations with ecommerce platforms.

If the platform you use for your online store isn’t one of Zettle’s nine integration partners, you can still add Zettle’s payment gateway to it with API coding, although this does require more technical expertise.

Payment links

A simpler way to accept payments online without a website is through Zettle’s payment link tool.

You can generate unique payment links in the Zettle app, which you can send to customers through several messaging channels, including WhatsApp, Instagram, text, and email. Customers are then taken to a secure payment page, where they can enter their card details.

Unfortunately, unlike rivals Square and SumUp, Zettle’s payment link tool can’t be used to generate QR codes, which can be handy for food trucks or pop-up sellers.

Invoicing tool

Zettle has a free invoicing tool that can be accessed via the Zettle app. The tool features ready-made invoice templates, and customers can receive invoices via email that include payment links.

You can also set up automatic payment reminders and give customers the option of paying in advance for services.

All in all, Zettle offers a pretty basic invoicing tool, although businesses that send out frequent invoices might want to consider dedicated invoicing software, such as the kind offered by accounting platforms QuickBooks and Xero.

Does Zettle Offer Good Customer Support?

Zettle offers decent customer support, although its operating hours could be longer.

Zettle offers customer support from 8:30am to 5:30pm on weekdays, through phone, email and live chat. While it offers a variety of contact channels, the fact that Zettle doesn’t offer weekend support is a downside, considering this is the busiest time for many small hospitality and retail businesses.

Many competitors offer weekend support, including Worldpay, takepayments, and Tyl by NatWest, although Zettle’s closest rivals, Square and SumUp, only offer weekday support from 9am to 5pm.

How Does Zettle Compare With Competitors?

Zettle’s closest competitors are Square and SumUp, since all three providers offer EPOS systems and tools for online payments, on top of card machines and payment processing.

Here’s a quick side-by-side comparison:

Zettle vs Square

Zettle and Square offer similar products and services. Both are zero-contract providers with no monthly fees, which, on top of payment processing and card machines, offer EPOS systems.

Looking at pricing, Zettle and Square have the same in-person transaction fees of 1.75%. However, Square charges cheaper fees of 1.4% + £0.25 for online payments, compared with Zettle’s 2.5%. When it comes to card machines, Square also has Zettle beat, charging just £19 + VAT for its Square Reader, compared with £29 for Zettle’s PayPal Reader.

Besides pricing, Square also offers more software tools than Zettle, since it has not only an online payment gateway, but also an online store builder and a virtual terminal. Square is also a more scalable option than Zettle, since it offers both free and advanced paid versions of all its tools, including its EPOS software, online store builder and invoicing tool.

For a more detailed comparison, see our Zettle vs Square review.

Zettle vs SumUp

Like with Square, Zettle by PayPal, and SumUp offer very similar products, but SumUp has a slight edge over Zettle.

SumUp has lower in-person transaction fees than Zettle – 0.99% to 1.69% compared with Zettle’s 1.75%, but both providers charge the same 2.5% fee for online payments. When it comes to hardware, Zettle offers cheaper card machines than SumUp, starting at £29 compared with £34.

What really gives SumUp an edge over Zettle is its software offering. Like Square, SumUp offers both free and paid versions of its EPOS software, unlike Zettle, which only offers free EPOS software. SumUp also offers an online store builder, not just a payment gateway like Zettle. However, SumUp only offers a free version of its online store builder, with no paid versions for growing businesses, unlike Square.

For a more detailed comparison, see our Zettle vs SumUp review.

What Kind of Business is Zettle Best for?

Zettle’s insight tools and third-party integrations with accounting and ecommerce providers, combined with its low-cost hardware and free software, make it particularly suitable for small businesses. That’s because they’ll mostly benefit from Zettle’s free reports and EPOS system.

We corroborated this with our research, interviewing Zettle users and comparing its features to its competitors. The overall 4.8/5 score it receives makes Zettle the best mobile merchant account for small businesses.

Zettle’s high transaction fee could become a huge expense for large businesses dealing with a high volume of sales. If yours fits this bill, you’ll be better served by Revolut or Stripe, which have lower fees.

How We Reviewed Zettle by PayPal