The 3 best free POS software systems for small businesses Starting a small business can be a costly endeavour, so we’ve rounded up the best free POS options to keep your operations running smoothly and overheads low. Written by Eddie Harris Reviewed by Ollie Simpson Updated on 2 January 2026 Our Research When judging the best POS systems, our writers work with expert researchers to focus on key features that matter most to small businesses. These include value for money – setup, hardware and transaction fees – help and support, plus the till, stock, and business management tools available. Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality. After testing 11 of the UK’s leading point-of-sale (POS) platforms in 2025, we found that Square is the best free POS software – thanks to its intuitive design, helpful features, and dependable customer support. Get started with Square POS for FREE Square is our top-rated POS system. You can find out how easy it is to use for yourself on its free plan Visit Square Pay no monthly fees But Square isn’t your only option. Several providers now offer genuinely useful POS software without any upfront fees.Below, we compare the top three free software options so you can choose the best POS system for your shop, café, stall, or mobile business. Key takeaways A free POS system is a strong starting point for budget-conscious small businesses, including retailers, cafés, food stalls, and service-based traders.Square is the best overall free POS system. It’s simple to set up and use, and offers strong tools for small businesses and scalable paid plans.SumUp offers the lowest transaction fees (1.69%), making it ideal for fast-paced small shops and mobile traders.PayPal Point of Sale (formerly Zettle, rebranded in November 2025) is great for micro-businesses already using PayPal. Compare free POS software at a glance 0 out of 0 backward forward Overall Score Based on our in-depth research and user testing Software cost Hardware cost Key benefits BEST OVERALL Square SumUp PayPal Point of Sale 4.8 4.2 3.6 Free Free Free From £19 + VAT From £25 + VAT From £49 + VAT Easy to use and quick to set upIn-depth real-time reportsGreat range of hardware Various features, such as discounts and sales trackingMobile and QR code orderingFree Business Account Simple and intuitive to useCustomer engagement toolsCustomisable gift cards We last updated this article on 02/01/2026All pricing and information are correct as of this date. Always check with each provider for the latest prices before you buy. How to choose free POS softwareChoosing a free POS software system means considering the three Ss: your scale, sector, and sales.ScaleFree POS software works well for small, single-location businesses, such as pop-up stalls, food trucks, market traders, boutique shops, and independent cafés. It gives you the essentials: taking card payments, managing simple inventory, and day-to-day reporting.But what happens when your business starts to take off? You’re going to need more from your POS software – more advanced inventory management tools, more powerful reporting, staff scheduling tools, etc.If you expect to scale, find a provider that offers clear paid tiers and more advanced hardware options you can upgrade to as you grow.SectorDifferent industries demand different POS features. For example, small and medium-sized retailers need barcode tools and inventory-tracking features, while hospitality small businesses need table-booking, order management, and ingredient-tracking features.But free POS systems typically offer the essentials all sectors need, while reserving more specialised, industry-specific tools for paid plans.All providers in our guide can work as a free retail POS system, but Square and SumUp offer stronger retail and hospitality tools overall.SalesLastly, consider your sales needs:Do you want monthly, annual, or quarterly sales reports?How many card transactions do you expect to make each month?Do you need online payments or invoicing?Have these answers ready before you sign any contracts.Also, consider the card fees you’ll pay as a merchant. A free plan can still cost you money – possibly even more in the long run – if fees are high and you process a lot of payments. 1. Square: best overall free POS software Square 4.8 Visit Square Square Review Transaction fees from: 1.75% Software price: Free Hardware price: From £19 + VAT Great range of hardware as well as a free iOS app Quick to set up and easy to use Wide range of help and support options Summary Led by Twitter co-founder Jack Dorsey and currently serving around four million customers, Square is – in our opinion – the best free POS system for most small businesses. It’s easy to learn, quick to set up, and flexible across industries. Show moreless Suitable if: You want a low-cost POS that’s easy to use You expect your business to grow and want clear upgrade options You want basic online ordering alongside in-person payments Not suitable if: You’ll need tools like inventory management You’d like dedicated training to help onboard staff What features are included on Square’s free plan?Square’s free POS software includes basic inventory tracking and online ordering, sales reporting tools, a customer list, and simple customer relationship management (CRM) functionality, among other features. There’s also a POS app for iOS and Android.However, Square’s free plan doesn’t include more advanced retail tools such as barcode label printing or multi-location stock control.For small retailers, Square works particularly well for simple product catalogues and speedy checkouts.We were left impressed by the range of support options that Square provides. Source: Startups.co.ukWhat is the cost structure for Square’s free plan?There are two key POS system expenses to know if you go with Square: transaction fees and hardware costs. (Square doesn’t charge a setup fee or monthly account fee.)The transaction fee is 1.75% per chip-and-PIN or contactless payment. This is roughly the industry average; it’s the same rate as PayPal Point of Sale (formerly Zettle) and only slightly higher than SumUp’s (1.69%).For online payments made with UK cards, the transaction fee jumps to 1.4% plus 25p. Square charges 2.5% plus 25p for online payments made with non-UK cards.As for hardware, you have two choices: Use your own smartphone or tablet to run the free Square POS software, or purchase dedicated hardware separately. Square has three options:Square Reader (£19 plus VAT)Square Terminal (£149 plus VAT)Square Register (£599 plus VAT)Square provides an excellent range of hardware if you need it, including its handheld POS device the Square Terminal. Source: Startups.co.uk What are the limitations of Square’s free plan?Before choosing Square’s free plan, just be mindful of the following limitations:Limited support hoursCustomer support on the free Square POS plan is available Monday to Friday, 9am to 5pm GMT. This means you’re out of luck if you hit a technical issue outside normal working hours. The upside is that paid plans include 24/7 phone support.Basic retail toolsSquare’s free POS gives you the basics, but advanced retail tools like purchase ordering, barcode label printing, and multi-location inventory are only available on paid Square for Retail plans.For small businesses with high sales volumes, upgrading can also make more financial sense, as Square for Retail Plus offers a lower 1.6% transaction fee.Limited functionality for full-service restaurantsThe free plan works well for basic coffee shops, bakeries, and simple food and drink sales, but not for full-service restaurants. With Square for Restaurants Plus or SumUp Plus, you can get access to key features such as floor planning. Try Square POS Get started with Square POS software for zero cost Try for free Our top-rated POS system for SMEs 2. SumUp: best free POS software for a fast-paced environment SumUp 4.2 Get Quotes SumUp Review Transaction fees from: 1.69% Software price: Free Hardware price: From £25 + VAT Superb range of hardware and accessories Mobile and QR code ordering Inventory management tools with stock alerts and cost management Summary In 2020, London-based payment service provider SumUp acquired GoodTill, an iPad-based POS software provider. Show moreless Suitable if: You want the lowest transaction fees on a free POS software plan You prefer a smartphone- or tablet-based POS setup You run a fast-paced hospitality or retail business Not suitable if: You want to be able to split bills You want the fullest range of help and support available You want a handheld POS device What features are included on SumUp’s free plan?SumUp’s free POS software gives you access to solid features, including sales tracking, discount and promotion tools, catalogue management for a range of products, mobile and QR code ordering, and a free SumUp Business Account for payouts and expense tracking.Since we last tested it in 2024, SumUp has made some improvements to its frontend. Its interface is simple and responsive, and we really like the “park order” function that allows users to adjust items quickly during transactions.If you need a card reader, then the SumUp Air is quick and easy to setup. Source: Startups.co.ukIf you need to upgrade in the future, SumUp’s paid tiers and range of card readers, terminals, and accessories offer some impressive options for scalability.What is the cost structure for SumUp’s free plan?SumUp charges 1.69% per in-person POS card payment – the lowest transaction fee among the providers in our guide. (Square and PayPal Point of Sale’s transaction fees start from 1.75%.)Much like Square’s POS, you can use SumUp’s free POS app on just a tablet or smartphone. If you want a dedicated card machine to take chip-and-PIN payments, you can pick up the SumUp Air for just £25.SumUp offers other hardware options, too, from standalone card readers to complete retail POS bundles.What are the limitations of SumUp’s free plan?Just keep in mind the below limitations when considering SumUp’s free plan:No bill splitting at the point of saleSumUp’s free POS software doesn’t enable splitting bills at checkout – but its paid plans do.Additionally, Square’s free POS supports bill splitting (just not item splits or seat splits).Single-location setupThe free system supports only one point-of-sale location. If you need multilocation management, you’ll need to pay for SumUp Pro.No online ordering outside the core POSIf your business relies on online ordering or delivery as well as in-person sales, you’ll need to upgrade to SumUp Pro, as these features aren’t included on the free plan.With Square, however, you can get these features; its free tier includes Square Online Ordering. 3. PayPal Point of Sale: best POS software for simplicity PayPal Point of Sale 3.6 Get Quotes PayPal Point of Sale review Transaction fees from: 1.75% Software price: Free Hardware price: From £49 + VAT Free POS app Easy-to-read sales reports PayPal Point of Sale reader easily integrates with other POS systems Summary Swedish financial technology company PayPal Point of Sale (formerly Zettle) launched in 2011 and was acquired by PayPal in 2018. It now provides a range of tools for merchants to take payments, including card readers and POS systems. Show moreless Pros You want a very simple POS system You already use PayPal for online payments You run a stall, pop-up, or one-person business Cons You want scalability Help and support is a priority You have an advanced inventory What features are included on PayPal Point of Sale’s free plan?PayPal Point of Sale’s free plan has remained largely unchanged since our last testing in 2024. It’s intuitive, user-friendly, and largely based around the till screen. You can add new products and discounts (and pre-set up discounts for even more efficiency), monitor customer engagement, manage inventory, and create customisable gift cards.Because PayPal Point of Sale connects directly to the PayPal ecosystem, all card and contactless payments flow straight into your PayPal Business account. This makes it easy to manage payouts, online sales, and invoicing in one place.We found that adding new products was a breeze with PayPal Point of Sale’s software. Source: Startups.co.uk Does your business use a POS system already? Yes No Save by comparing costs What is the cost structure for PayPal Point of Sale’s free plan?With PayPal Point of Sale, all you’ll need to pay for is the transaction fee on each payment you take. It charges a flat 1.75% fee on all card transactions, the same as Square’s rate and a bit higher than SumUp’s.As with Square and SumUp, you can start accepting contactless payments with the PayPal Point of Sale app on a smartphone or tablet; no additional hardware is required.But if you also want to take chip-and-PIN payments, PayPal Point of Sale’s cheapest card machine is the Zettle Reader 2, which costs £49, plus VAT.The small and lightweight Zettle Reader 2 has great haptic feedback. Source: Startups.co.ukWhat are the limitations of PayPal Point of Sale’s free plan?Some key limitations of PayPal Point of Sale’s free plan include:No floor or table planningPayPal Point of Sale’s free software doesn’t support floor planning, reservations, waitlists, or table management – and it doesn’t integrate with third-party reservation systems in the way Square and SumUp do.Most restaurants will need to look for a different provider. For recommendations, check out our full roundup of the best POS systems for restaurants.Limited scalabilityPayPal Point of Sale offers a single free POS software option. There are no paid tiers that offer more features, which can really limit how much the POS can grow with your business.No mobile or QR ordering through the POSThe system also doesn’t support mobile or QR code ordering, so if this is an option you’ll want for your customers, you should check out Square or SumUp. This will be most relevant for those looking for the best takeaway POS.Read next: SumUp vs PayPal Point of Sale Methodology: how we ranked the best free POS softwareIn May 2025, our dedicated Senior Research Executive led a new round of POS system testing to ensure our recommendations are accurate and up to date.To rank the best free POS software, we analysed providers offering a genuinely free plan and tested them across six key categories.Our scoring framework was developed by our Head of Research, and the evaluation process included hands-on testing by our Senior Reviews Writer and users at our London offices.Each of the following categories was weighted by importance, with the combined scores used to produce our overall rankings. Our six judging categories: Usability (30%): how easy the POS system is to set up and use.Software (25%): what features are included with the free POS software, and how useful they are for small businesses.Pricing (20%): how much each provider charges in transaction fees, as well as the cost of any hardware, such as a card machine.Help and support (15%): the range of support options each platform offers, alongside the accuracy and responsiveness of the live chat and knowledge centres.Hardware (5%): the range of POS hardware, such as card readers and terminals, that the provider offers, as well as if it’s if it is needed.Reputation (5%): what existing users think of the provider, based on third-party reviews, online comments, and our own user testing experience. Summary: the best free POS softwareSquare is the best free POS software for most small businesses, thanks to its easy setup, intuitive interface, and strong upgrade path as your operations grow.SumUp is the top choice if keeping transaction fees low and checkouts fast are your main priorities. It’s ideal for fast-paced environments such as coffee shops and pop-up shops.PayPal Point of Sale offers the simplest, most user-friendly experience and is perfect for micro-businesses that want straightforward in-person payments connected to PayPal.Ultimately, the best choice depends on what matters most to your business: scalability, speed, simplicity, or price. However, all three systems offer solid, no-cost entry points into modern POS software. Frequently Asked Questions How do free POS systems compare on transaction fees? SumUp offers the lowest transaction fees: 1.69% for in-person card payments. Square and PayPal Point of Sale both charge 1.75% for in-person transactions. Which free POS system is best for mobile-only businesses? Square, SumUp, and PayPal Point of Sale are all great options; you can run their free software on a smartphone or tablet. But SumUp is the best specifically for mobile-only businesses. Its free plan is solid and has the lowest transaction fees of the providers on our list. That said, Square is a better long-term option if you want room to grow or add online sales later. Can I process online payments or invoicing on these free plans? Square offers basic online payments and invoicing, including advanced eCommerce tools on paid tiers. SumUp supports online payment links and invoicing on its free plan, but remote payment fees are higher than in-person transaction fees. PayPal Point of Sale connects directly to your PayPal Business account, which means you can pair the free POS app with PayPal’s online payment and invoicing tools. This makes it the simplest option if you want to handle both online and in-person sales without upgrading to a paid plan. Jump back up to any of our reviews: Free POS comparison table How to choose free POS software 1. Square: best overall free POS software 2. SumUp: best free POS software for a fast-paced environment 3. PayPal Point of Sale: best POS software for simplicity Methodology: how we ranked the best free POS software FAQs Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews. Share this post facebook twitter linkedin Tags News and Features Written by: Eddie Harris Senior Reviews Writer Eddie is resident Senior Reviews Writer for Startups, focusing on merchant accounts, point of sales systems and business phone systems. He works closely with our in-house team of research experts, carrying out hours of hands-on user testing and market analysis to ensure that our recommendations and reviews are as helpful and accurate as possible. Eddie is also Startups video presenter. He helps create informative, helpful visual content alongside our written reviews, to better aid customers with their decision making. Eddie joined Startups from its sister site Expert Reviews, where he wrote in-depth informational articles and covered the biggest consumer deals events of the year. And, having previously worked as a freelancer providing screenplay and book coverage in the film and television industry, Eddie is no stranger to the demands of the sole trader. Reviewed by: Ollie Simpson Senior Research Executive After three years of refining my skills in data analysis, I transitioned to a role as a researcher to help understand our readers' preferences and needs. My professional journey started as a researcher in law enforcement, where I developed strong analytical abilities. Later, I moved into operations, strengthening my understanding of quantitative data. Now, I blend my quantitative analysis skills with qualitative research to explore both audience preferences and product nuances. Armed with a UX design diploma, I translate research findings into actionable insights that facilitate informed decision-making. Whether enhancing Startups offerings or delivering research presentations, I am driven by a relentless pursuit of improvement and results.