Zettle vs Square: Which Is Best For Small Businesses?

Zettle by PayPal and Square offer very similar products and services, so it can be hard to tell which is better. Both offer payment processing services, great card machines, EPOS systems, and tools for taking online payments.

We’ve tested and researched both providers thoroughly, and Square is better than Zettle by a small margin. Square offers slightly better value for money than Zettle, and is far more scalable, thanks to its tiered EPOS and ecommerce platform plans. That being said, Zettle offers a better range of card machines than Square, and it’s just as easy and quick to get up and running with Zettle as it is with Square.

We’ll compare Zettle and Square in more detail in our review, but if you want help choosing a payment processing provider, you can use our free quotes tool. We’ll match you up with trusted providers, who will contact you with obligation-free quotes.

Zettle vs Square: Side-by-Side Comparison

Zettle and Square are both zero-contract providers that charge fixed transaction fees, no monthly fees for basic payment processing, and sell their hardware upfront. Both also offer free EPOS software and free tools for taking online payments.

Here’s a quick comparison:

For an in-depth look at each platform, see our Zettle Review and Square Review pages.

Card Machines: Zettle Has a Slight Edge

Zettle has a slight edge over Square when it comes to its card machines for a few reasons. Zettle’s basic card machines feature PIN pads and screens, while Square’s doesn’t, making Zettle’s card machines better for chip and PIN transactions. When it comes to each providers’ more advanced card machines, Zettle’s comes with Wi-Fi and 4G connectivity, while Square’s only works with Wi-Fi.

Both providers offer two types of card machines:

• Simple card readers that need to be paired with each respective providers’ apps to take payments.
• Advanced card machines that double as EPOS devices and work in a standalone capacity.

We’ll compare the simple readers first.

Zettle Reader 2 and PayPal Reader vs Square Reader

Verdict: Zettle’s card readers are better for usability 

Both of Zettle’s basic card readers, the Zettle Reader 2 and the PayPal Reader, and the Square Reader need to be paired with each providers’ respective apps in order to be operated. The key difference is that Zettle’s basic card readers have PIN pads and screens, while the Square Reader does not. This means that if a customer needs to enter their PIN when using the Square Reader, they’ll need to do it on the merchant’s phone via the app, which can be awkward.

Here’s a look at the other similarities and differences:

The Zettle Reader 2 is Zettle’s original card reader. However, this year, it released the PayPal Reader, essentially an updated, more modern-looking card reader. Both are functionally very similar, except that the PayPal Reader has a larger screen that’s also a touchscreen.

Zettle’s two basic card readers and the Square Reader are all compact and perfect for taking payments on the go, although they can all also be used as part of an EPOS kit.

While the Square Reader is the most compact, the lightest, and cheapest of the three card readers at £19 + VAT, its lack of screen or PIN pad means it’s not as good for taking chip and PIN payments.

That said, the Square Reader has an offline mode, which means you can keep taking payments even if you lose connection. This isn’t a feature that either of Zettle’s basic card readers have, making the Square Reader slightly better for on-the-go payments if you operate in areas with a poor connection.

For use paired with an EPOS kit, Zettle’s card readers are a better choice, while the Square Reader is a better option for taking table-side payments.

That’s because the Zettle Reader 2 and PayPal Reader can be paired with a £29 + VAT charging dock, so customers can easily see the amount they need to pay and enter their PIN if necessary. They are also compatible with third-party EPOS systems, not just Zettle’s native EPOS system, unlike the Square Reader, which only works with Square’s EPOS system.

The Square Reader, on the other hand, is better for taking payments at a table or on the shop floor, since Square sells a £65 + VAT iPad case with a slot for the Square Reader.

PayPal Terminal vs Square Terminal

Verdict: Zettle’s card machine comes with 4G connectivity while Square’s doesn’t

The PayPal Terminal (formerly called the Zettle Terminal) and the Square Terminal are both standalone card machines that feature each providers’ respective EPOS software.

The PayPal Terminal is a slightly better option than Square Terminal, since it connects to 4G, not just Wi-Fi, which means it can be used on the go as well as in an establishment.

Here’s a look at the other similarities and differences:

Although both card readers cost the same on the surface, the PayPal Reader is actually more expensive than the Square Reader, if you want both readers to have a receipt printer. The Square Reader costs £149 + VAT and has a built-in receipt printer, whereas to get a receipt printer with the PayPal Terminal, you need to purchase the £89 + VAT charging dock, which brings the total up to £238 + VAT.

If you’re looking to save, you should know that Zettle currently has a deal on that reduces the price of the charging dock to £50 + VAT if purchased alongside the PayPal Reader.

Even though the PayPal Terminal is more expensive than the Square Terminal, if you include the charging dock, the extra price might be worth it if you plan on using the PayPal Terminal as a substitute EPOS system for taking payments on the go. That’s because the PayPal Terminal comes with Wi-Fi and 4G connectivity, while the Square Terminal only connects to Wi-Fi.

The PayPal Terminal is also much lighter than the Square Terminal if you discount the dock, which, paired with its 4G connectivity, makes it more versatile. The PayPal Terminal works well for counter service, table service, or on-the-go selling, while the Square Terminal is really only designed for countertop use because of its size and weight.

Processing Fees: Square Offers Better Value

Both Square and Zettle charge the same transaction fee for in-person payments, 1.75%, but Square charges cheaper fees for online payments, and is one of the rare merchant service providers to not charge chargeback fees.

Square also lowers its in-person transaction fees on certain paid EPOS software plans, making it better value overall than Zettle for businesses.

Here are the key differences:

For a more detailed look at the cost of each provider, see our Square Pricing and Zettle Pricing guides.

As you can see, Zettle and Square charge the same fees for selling in-person, 1.75%. However, Square lowers this fee to 1.6% on select paid EPOS software plans. There’s obviously a trade-off here, since what you save in transaction fees, you might end up paying in monthly software fees, but if you’re a high-volume seller, there’s a high chance you’ll make up the cost of paid software with savings from the lower fees.

Additionally, Square is a much better value option than Zettle when it comes to taking online payments. While Zettle charges fees of 2.5%, Square charges 1.4% + £0.25 for UK cards. That said, if most of your customers are international, Zettle is actually cheaper than Square for selling online, since its 2.5% remains the same regardless of the card type, while Square’s fees increase to 2.5% + £0.25 for non-UK cards.

Both providers have the same refund policy, but Square has a better chargeback policy. It charges no additional fee for chargebacks, whereas most competitors charge between £10 and £25 per successful chargeback claim.

Zettle also has a decent policy, covering up to £250 in chargebacks per month. However, if chargebacks exceed this amount, Zettle will charge a fee, although it doesn’t specify how much.

EPOS System: Square Offers Better Features

Both Zettle and Square offer easy-to-use native EPOS systems, and both have free software plans. However, Square’s EPOS software comes with more advanced features than Zettle’s and is more scalable.

That’s because Square offers three types of EPOS software with features tailored to hospitality, retail, and appointment-based businesses, and offers free and advanced paid plans for each. Zettle, on the other hand, only offers its free EPOS app and doesn’t have tailored software for different industries.

Here’s a quick summary of what each system offers:

EPOS software

Verdict: Square offers more features and is scalable

When it comes to software, Square offers a wider range of features than Zettle. As noted earlier, Square has three different types of EPOS software dedicated to separate industries, whereas Zettle just has one, which means Square’s EPOS features are more tailored to businesses’ needs.

Square’s EPOS features are also more advanced than Zettle’s. Starting with the basics, Square’s restaurant EPOS software comes with table plan management, menu creation, and mobile QR code ordering, all features that Zettle’s EPOS system is missing. Square also offers KDS (kitchen display system) software for kitchen workers, and automated tip sharing, all features missing from Zettle’s kit.

These features make Square’s restaurant EPOS system more suited to a variety of hospitality businesses, from counter service to table service establishments, and more capable of handling large numbers of orders.

When it comes to suitability for retail businesses, Zettle fares a little better, but it still offers fewer features than Square’s dedicated retail EPOS system. To its credit, Zettle offers a free digital gift card creation tool, different employee permissions, and barcode scanning.

However, Square offers all these tools and more. For example, Square offers free digital gift card creation, but also lets businesses order physical gift cards. It also offers more native marketing tools than Zettle, such as SMS and email marketing. To use these with Zettle, you need to integrate with third-party apps.

EPOS hardware

Verdict: Square offers a wider range of hardware and accessories 

Square offers a wider range of EPOS terminals and accessories than Zettle.

Since Zettle’s EPOS system is only iPad-based, it only sells iPad stands, whereas Square offers both an iPad stand and a physical countertop register. Square’s iPad stand is also better value than Zettle’s since it costs just £99 + VAT, and has a built-in contactless and chip and PIN card reader, whereas Zettle’s iPad stand and card reader kit costs £149 + VAT.

Additionally, since Zettle doesn’t offer countertop registers, it also doesn’t offer any registers with a customer-facing screen, whereas Square does for £599 + VAT.

Looking at accessories, Zettle has a decent collection, offering a printer, barcode scanner, and a cash drawer. However, Square offers all these items, plus KDS screens and kitchen scales.

Ecommerce and Online Payments: Square Offers More Tools

Both Zettle and Square offer an online payment gateway for taking payments via your existing website. However, Square also offers its own online store builder.

While Square’s online store builder isn’t as sophisticated as those offered by dedicated ecommerce platforms, such as Shopify, it’s moderately scalable for small businesses. Using the same provider for your payment processing, EPOS system, and ecommerce platform also guarantees seamless integration, something you don’t get with Zettle.

Combine this with the fact that Square charges lower transaction fees for online selling than Zettle – 1.4% + £0.25 compared with 1.75% – and it’s a better option for merchants who sell both in-person and online.

The two competitors offer additional ways to take payments virtually. The full list includes:

As you can see, Square offers two features that Zettle doesn’t; an ecommerce platform builder and a QR code generator. Square also offers both a free and paid version of its invoicing tool, whereas Zettle only offers a free invoicing tool.

Both Zettle and Square’s free invoicing tools include unlimited monthly invoice sends and pre-built templates, but Square’s paid invoicing tool allows for more control and customisation. The paid version allows for batch sending, template customisation, and multi-package quote creation, features that Zettle’s invoicing tool is missing.

Alternatives to Zettle and Square

Here are some Zettle and Square alternatives that are also zero-contract and come with no monthly fees:

The most similar to Zettle and Square, in terms of pricing structure and services offered, is SumUp. It’s zero contract, has no monthly fees, and offers a native EPOS system and a free online store builder. Its in-person transaction fees are also lower than Zettle and Square’s at 1.69%.

We’ve compared Square and SumUp directly if you’re interested in a more detailed overview.

Options such as Stripe and Tide differ slightly from Zettle and Square, as their focus is on business financial management rather than sales solutions such as EPOS. They both offer card machines for selling in-person and online gateways for taking payments online, but also offer business bank accounts and invoicing tools.

Tyl by NatWest is more of a traditional payment processing provider. It offers bespoke contract-based services for businesses with a high card turnover. But it also has a contract-free plan with fixed transaction fees of 1.39% + £0.05, some of the lowest on the market, for small businesses. Alongside this, it offers a variety of card machines, an online gateway and a virtual terminal, making it a great value option for basic payment processing needs.

Our Methodology: How We Compared Zettle and Square