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.

After testing 11 of the UK’s leading point-of-sale (POS) platforms across 37 categories, including fresh hands-on testing in May 2026, we determined that Square is the best free POS system, thanks to the incredibly easy-to-use interface and reasonable 1.75% transaction fees.

Cash flow margins are tighter than ever in 2026 and, according to new data from The Director’s Helpline, 76% of SMEs are uncertain if they can even cover next month’s bills. As a result, it’s important not to be locked into an expensive monthly contract for your POS system if you have unpredictable revenue.

That’s why we’ve used our expert research to recommend the best POS systems for small businesses that have a free plan.

Compare free POS software at a glance

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		Overall Score Based on our in-depth research and user testing	Software cost	Hardware cost	Key benefits
BEST OVERALL
Square	PayPal Point of Sale	SumUp
4.8	3.6	4.2
Free	Free	Free
From £19 + VAT	From £29 + VAT	From £25 + VAT
Easy to use and quick to set up In-depth real-time reports Great range of hardware	Simple and intuitive to use Customer engagement tools Customisable gift cards	Various features, such as discounts and sales tracking Mobile and QR code ordering Free Business Account

1. Square: best overall free POS software

Overall rating: 4.7
Transaction fees: 1.75%
Read our full Square review

Square is the best free POS software for small business owners due to how well designed and easy-to-use the interface is. It was easily the most straightforward software I’ve tested. I loved the exceptionally clear and clean Square interface, which made processing sales and making adjustments on the fly incredibly simple.

We conducted test runs of a complex food and drink order, with nested modifiers and discounts, and found that Square was able to manage a completion time of 8.7 minutes, far quicker than SumUp’s 16.1 minutes.

Square isn’t just easy-to-use, but it also provides impressively sophisticated features for a no-contract plan, including:

• Multi-channel inventory syncing
• Specific item variation
• Automated alerts for stock levels
• Real-time reports
• Customer support 9-5 on weekdays

I was also impressed to see that Square has embedded Square AI into the back office, on the free plan. Launched in February 2026, Square AI is the business productivity assistant that you can use as a chatbot to get quick answers about your sales.

Square’s free plan is also suitable for scaling startups that need a low-cost option for the moment but want to be supported in the future. Unlike PayPal Point of Sale, Square has industry-specific premium plans – Square for Restaurants Plus and Square for Retail Plus – which are ideal for growth.

What do I need to pay for?

Square charges a flat 1.75% fee per in-person card payment, with no ongoing monthly costs, but just note that there’s a higher rate for non-UK card transactions:

What hardware does Square provide?

You can save money by using just the Square POS app on a smartphone or tablet, but Square does provide an excellent range of card readers and terminals, including:

• The Square Reader (£19 + VAT): a simple, basic card reader that pairs to your smartphone, with 24/7 fraud protection
• The Square Terminal (£149 + VAT): a handheld POS terminal with a built-in printer, which I’ve tested personally and was extremely impressed with
• The Square Handheld (£169 + VAT): the latest edition to the lineup, this is a pocket-sized POS terminal with a built-in barcode scanner and camera

Square also provides a range of accessories including stands, docks, cash drawers, printers, and more.

Who do we recommend Square’s free plan to?

We recommend Square to microbusinesses that need a free plan with the highest level of functionality. Our testing found that Square outperforms both PayPal Point of Sale and SumUp when it comes to the depth of features the free plans offer, with Square being a better option for handling advanced item modifications.

However, we would not recommend Square’s free plan to all-night hospitality businesses, due to the lack of 24/7 phone support.

My thoughts on Square's free plan…

I’ve tested a range of different POS platforms, and Square stands out for for how easy it makes every step of the process. Signing up to the free plan was so quick and simple, and the frontend interface is so smooth to navigate around. It’s an impressively well-designed platform considering you’re getting it on a completely free plan.

Eddie Harris Senior Reviews Writer

2. PayPal Point of Sale: best free POS for short-term, casual traders

Overall rating: 4.5
Transaction fees from: 1.75%
Read my head-to-head comparison:PayPal Point of Sale vs Square

PayPal Point of Sale is the best free POS for very simple, short term, and seasonal businesses, as you’ll have a POS system that’s seamlessly integrated with the existing PayPal ecosystem. If you already have a PayPal account, it’ll be an extremely painless process.

If you’re a solopreneur with no ambitious plans to scale and you just need to take payments as quickly and easily as possible (let’s say you’re setting up a market stall over the summer), then PayPal Point of Sale is an ideal option. You’ll also get the benefit of PayPal’s sophisticated financial infrastructure, preventing fraud and helping to fight bad-faith chargebacks.

In my testing, I found that PayPal Point of Sale’s interface excels at simplicity, meaning a very short-learning curve. PayPal Point of Sale opts for a clean, minimalist design, that can handle a smooth payment process, including an automated “repeat payment” tool that can really speed orders if you’re dealing with a busy crowd.

What do I need to pay for?

PayPal Point of Sale has no monthly fees, and charges a flat 1.75% transaction fee for all in-person card payments, the same as Square:

Just keep in mind that manual card entry (payments that are keyed in) has a far higher 3.4% + 20p transaction fee. If you suspect a lot of your payments will be coming from phone orders, or backend invoicing, then Square’s free plan is a better option.

What hardware does PayPal Point of Sale provide?

You can start accepting contactless payments immediately with just the PayPal Point of Sale app. You can download it onto a smartphone or tablet, so any additional hardware isn’t necessary, though if you do want a dedicated card reader, there are two to choose from:

• The PayPal Card Reader connects to your phone via Bluetooth and can be bought at a first-time purchase price of just £29 + VAT (each additional reader then costs £69 + VAT). It includes a basic touchscreen, to make it easier for customers to tip you
• The PayPal Terminal is an all-in-one portable POS device with a pre-loaded SIM card, which can be bought for a one-off fee of £149 + VAT. Retailers can add on a barcode scanner for £50 +VAT, and a printer (with dock) for £50 + VAT

Who do we recommend PayPal Point of Sale for?

We recommend PayPal Point of Sale for casual traders, market stalls, and pop-up shops due to the simplicity of connecting your POS system to your PayPal account. Square might present better functionality and a better-designed interface, but merchants on-the-go who just want the simple, short-term reliability of the PayPal payment ecosystem will be best off with PayPal Point of Sale.

We would not recommend PayPal Point of Sale to retail businesses with complex stock, as you’ll need the deeper functionality of Square POS.

Read next:SumUp vs PayPal Point of Sale

My thoughts on PayPal Point of Sale's free plan…

When I tested PayPal Point of Sale, I was really impressed with how clean and modern it felt for a free plan. It’s solidly designed, and really easy to navigate around, and I liked how it categorised everything, which made it easy to find whatever I was looking for. It might not have the depth of other POS systems, but if you’re a seasonal trader who just wants to get set up as quickly as possible with an easy-to-learn platform, then PayPal Point of Sale is going to fit the bill nicely.

Eddie Harris Senior Reviews Writer

3. SumUp: best for low-fees and fast ordering

Overall rating: 4.4
Transaction fees: 1.69% for in-person transaction fees
Read ourfull SumUp review

SumUp has an exceptionally slick frontend interface that makes it the best free plan for dealing with rapid orders. It requires virtually no onboarding to get to grips with and it also has a low 1.69% transaction fee. SumUp’s frontend is clean, visually appealing, and highly responsive, so it’s great for making quick-adjustments mid-sale.

SumUp’s minimalist black-and-white interface design streamlines basic ordering and menu navigation. While it lacks the depth of a more enterprise-level software, this simplicity will be appreciated by solopreneurs with basic needs.

Beyond the simplicity of the software, merchants will also benefit from opening up a free SumUp Business Account, which allows you to send instant transfers and, crucially, fast next-day access to funds (including weekends and public holidays).

What do I need to pay for?

SumUp charges the lowest in-person transaction fee on the roundup at just 1.69%:

SumUp also provides more options for scalability than PayPal Point of Sale, as it has the option to upgrade to SumUp Payments Plus for £19 + VAT per month, which unlocks low 0.99% transaction fees and 24/7 support. While you might need a free POS plan for the moment, if you start taking in more than £3000 per month in card sales, Payments Plus will save you money in the long run.

What hardware does SumUp provide?

As with Square and PayPal Point of Sale, you can use the free POS app on a tablet or smartphone, but you can also upgrade to a reader or terminal from SumUp’s range of physical hardware:

• The SumUp Solo Lite (£25 + VAT): a lightweight but durable reader that connects to your smartphone and gives your customers the option to tip
• The SumUp Solo (£59 + VAT): a standalone touchscreen reader, which comes with free built-in 4G
• The SumUp Terminal (£135 + VAT): a handheld POS system with built-in printer, real-time sales tracking, and AI-powered catalogue creation

Who do we recommend SumUp’s free plan to?

We recommend SumUp for micro-businesses that are processing less than £2,500 per month, including seasonal traders, pop-up stalls, and mobile solopreneurs who need low monthly fees, zero lock-in, and a simple system that’s very easy to learn.

If you’re a running a food market stall, you’re a craft fair vendor, or you’re an on-the-go service provider (like a hair stylist or personal trainer) and you don’t need to depth of functionality that Square provides, then SumUp’s operational simplicity will be a great fit for you.

My thoughts on SumUp's free plan…

SumUp certainly excels at simplicity, and while the back office can be a little clunky, if your priority is fast customer-facing functionality on a free tier, then this is the POS for you. During my testing, a nifty feature I particularly appreciated was the “park order” function, which meant balancing multiple customer carts at once was really easy.

Eddie Harris Senior Reviews Writer

How to choose free POS software

Choosing a free POS software system means considering the three Ss: your scale, sector, and sales.

Can the free plan scale alongside my business as it grows?

Free 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.

How to choose a POS based on your industry sector

Different industries demand different POS features. For example, small and medium-sized retailers need barcode tools and inventory-tracking features, while small hospitality 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.

Analysing your monthly sales volumes and needs

Lastly, 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.

Methodology: how we ranked the best free POS software

To rank the best free POS software, we analysed providers offering a genuinely free plan and tested them across six key categories deemed to be most important to merchants looking for a free POS platform.

Our user-led 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. We conducted a new round of testing as recently as May 2026 for Square and SumUp.

Each of the following categories was weighted by importance, and split between retail and hospitality respectively to ensure we’re factoring the needs of both industries:

What are the software capabilities of the free POS platform?

• Hospitality: 35%
• Retail: 35%

We assessed the capabilities for inventory management, data reporting, app integrations, customer engagement tools, menu creation, bill splitting, and the offline functionality.

Do I need additional hardware with the free plan, and what range of readers and accessories are available?

• Hospitality: 20%
• Retail: 25%

We examined the range of terminals and card readers the free platform sells, if required by merchants, including the portability of the device, display quality and size, customer display options, and the option for a receipt printer.

How easy is the software to use?

• Hospitality: 20%
• Retail: 15%

I carried out actual, hands-on user testing across the three platforms to test-run an end-to-end sales order, to see how easy-to-use the platform would be for a merchant to use.

What are the additional costs involved with the no-cost tier?

• Hospitality: 10%
• Retail: 15%

No free platform is every truly free: we examined all the other possible costs involved, including the payment processing fees and the price of any hardware if you choose to use a physical reader.

What help and support options are available on the free plan?

• Hospitality 10%
• Retail 15%

We examined the range and types of customer support available, including by phone, email, live chat, forums, and in-platform support, as well as testing the accuracy of the knowledge centre.

What is the overall reputation of the POS brand?

• Hospitality: 5%
• Retail: 5%

We researched the brand reputation of each provider, through competitor reviews, how likely our expert testers are to recommend the platform, online comments via platforms like Trustpilot, and price comparison analysis.

Verdict: which is the best free POS software?

Square is the best free POS software for small businesses, thanks to the exceptionally intuitive interface, impressive functionality, and option for premium plans if you scale in the future.

SumUp is the top choice if keeping transaction fees low and checkouts fast are your main priorities, whereas PayPal Point of Sale offers straightforward in-person payments connected to PayPal.

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.

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Reviewed By

Katy Ward Business journalist

Katy Ward is a seasoned business and finance writer with a 15-year career focused on where corporate finance meets consumer payment solutions.

A graduate of Oxford University, Katy’s considerable institutional expertise was cultivated through long-term roles and collaborations with global finance titans, including Barclays, Tandem Bank, Grant Thornton, and the London Stock Exchange Group. Her work portfolio includes comprehensive analysis of complex financial products, from credit cards and commercial loans to B2B payment systems.

For Startups.co.uk, Katy provides authoritative, regulatory-aware reviews of high-value commercial solutions. Leveraging her extensive background in banking and financial infrastructure to evaluate the stability, security, and fee structures of Merchant Accounts and POS Systems, she ensures our small business audience receive trustworthy guidance.

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