PayPal Point of Sale review: is it the right POS for your small business?

PayPal Point of Sale is a stellar choice for new businesses and is one of the best free POS systems on the market.

However, PayPal Point of Sale may not be the ideal choice for online sellers, as its lacklustre business and stock management tools significantly restrict its suitability for more advanced sales requirements.

In this article, we will delve deeper into the reasons behind PayPal Point of Sale’s pros and cons, providing you with a detailed analysis of its strengths and weaknesses to help you make an informed choice for your specific business needs.

What is PayPal Point of Sale?

Formerly known as Zettle, PayPal Point of Sale is a renowned financial technology company offering a suite of payment and business management solutions.

Its primary offerings include point-of-sale (POS) systems, card readers, and payment processing services (it offers one of the best card readers on the market).

We strongly recommend PayPal Point of Sale for small businesses. Its fees are reasonable, with a key value indicator being its seamless integration with existing PayPal accounts, which is particularly handy if you sell on online marketplaces.

Pros and cons of PayPal Point of Sale

As an easy way to start taking payments, PayPal Point of Sale is a good option for startups and those with low-maintenance POS needs.

However, there are important features missing that will make it a poor choice for certain businesses. For example, it’s missing advanced hospitality tools, ingredient-level inventory tracking, multi-location stock redistribution, and visual table plan management, so it wouldn’t be suitable for full-service restaurant businesses.

How much does PayPal Point of Sale cost?

PayPal Point of Sale costs £0 a month for its standard POS software, which you can download for both iOS and Android devices.

In terms of POS equipment, PayPal’s Card Reader costs just £29 + VAT for your first reader (additional or replacement readers cost £69 each).

Meanwhile, its Terminal device costs £149 + VAT for the terminal on its own, or £199 + VAT with a built-in barcode scanner included.

How much are PayPal’s transaction fees?

As there are no monthly contracts for its paid products, PayPal Point of Sales instead charges card processing fees.

How do you take payments with PayPal Point of Sale?

PayPal Point of Sale has a range of products available to help you start taking payments. You can use their native app to manage them, which is designed to give users greater control over their payments and the ability to accept a transaction using a payment link.

PayPal’s card reader and POS equipment

PayPal Point of System offers several kinds of card readers, standalone terminals, and supported hardware designed for physical retail businesses and mobile trading.

Countertop docks and station stands

PayPal Point of Sale also offers countertop docks and station stands, which are designed to keep devices securely in place.

Additionally, for fixed retail counters needing a traditional POS layout, PayPal integrates with standard third-party desktop exteriors. This includes:

• Mobile/portable receipt printers: Star SM-L200 / Epson TM-P20II (Bluetooth)
• Stationary countertops: Star mC-Print3 / Epson TM-m30III (LAN, Wi-Fi, USB) (£249 + VAT)
• Cash drawers: standard 24V RJ-11 heavy-duty metal cash drawers (e.g., APG Vasario or ECD330) driven via a connected receipt printer (£49 + VAT)
• Barcode scanners: wireless bluetooth scanners (Socket Mobile S700 series) or using the built-in 1D/2D scanner on the PayPal Terminal (£199)

PayPal payment links

Payment links serve as PayPal Point of Sale’s main mechanism for handling card-not-present sales without needing a fully fledged ecommerce store.

Generating and sharing a payment link is executed directly within the PayPal POS app. Here’s a quick breakdown of how it works:

• Add items from the product catalogue or enter a custom amount to the till screen
• Select “Send Link” instead of a standard card payment at checkout
• Enter a customer reference name for internal tracking
• Choose a distribution channel directly from your device (like SMS, email and WhatsApp)

From there, the customer opens the link on their smartphone or browser and completes the payment using their credit/debit card details or PayPal account balance.

PayPal POS charges 2.5% for each Payment Link transaction made. This might sound like a lot, but it’s actually fairly average (our top-rated platform, Square, charges the same amount).

What features does PayPal Point of Sale have?

PayPal Point of Sale is designed to help businesses start taking payments quickly, with no monthly fees and an easy-to-use POS system. Its best features include:

• Visual product library: organise items into custom categories, assign colour-coded image titles, and configure variants like sizes, colours, and materials.
• Bulk import and export: upload large SKU catalogues via CSV spreadsheet uploads through the back-office portal.
• Stock tracking and alerts: monitor stock levels in real time and set up low stock notifications to prevent overselling.
• Barcode assignment: assign standard 1D/2D barcodes or internal SKU codes to products for easy scanning through mobile device cameras or dedicated terminal scanners.
• Grid-based register layout: a simplified checkout screen with quick navigation for tablets, smartphones, or dedicated hardware.
• Order holding (parking): save open orders or tabs mid-transaction to process other customers.
• Discounts and custom tipping: apply preset or custom percentage and monetary discounts directly to single items or the entire basket, and prompt custom tipping percentages at checkout.
• Gift cards: issue, track, and redeem custom digital or physical gift cards directly through the app.
• Real-time sales dashboard: track daily gross sales, net totals, payment method breakdowns, and average order values instantly.
• Product and staff performance: identify top-selling inventory items and evaluate staff performance across individual employee profiles.
• Data exporting: generate and export financial summaries in PDF or Excel formats to simplify value-added tax (VAT) preparation and accounting workflows.
• Customer directory: build a central database of customer contact information and record individual purchase histories to encourage repeat business.
• Staff passcodes and permissions: assign personal PIN codes to individual team members to restrict access to back-office settings, manual discounts, or sales reports.

What I liked about PayPal Point of Sale

When testing PayPal POS for myself, I was impressed with how clear, minimal, and fast the till system was to navigate. The visual layout also uses large, clearly labelled buttons and minimal sub-menu navigation, which helps staff process transactions with little to no prior software training.

I also appreciated how easy it was to edit orders and split bills, particularly compared to competitors like Epos Now. Its back-office web portal had a clean and clutter-free layout, making it easy to set up product catalogues and organise inventory into categories.

Finally, through gathering user feedback, users often described PayPal Point of Sale as a “safe pair of hands” for low-volume trading because it provides simple features without any monthly cost, which is great for early-stage vendors, market sellers, and pop-up shops that want a straightforward way to accept payments without committing to an ongoing subscription.

What I disliked about PayPal Point of Sale

On the other hand, despite the platform’s intuitive front-end, the app’s default monochrome colour scheme makes product tiles look too similar, which can make it harder for staff to distinguish between items quickly during busy trading periods (particularly when product images haven’t been added).

Another issue I noticed on tablet till setups was the lack of a search bar on the main checkout item grid, which is frustrating as it forces staff to scroll through categories manually.

Moreover, when configuring certain administrative settings or connecting third-party accounting software, it redirected me to a web browser outside the app, where I had to sign in again before completing the task – something that felt like an unnecessary step considering how seamless most of the platform is.

What are the best alternatives to PayPal Point of Sale?

The best alternatives to PayPal Point of Sale are Square, Shopify POS, Lightspeed Retail, Epos Now, Clover, SumUp, and takepayments.

While PayPal POS is a strong option for businesses that want a simple way to accept payments, it may not offer all the features needed as businesses grow or need more complex requirements. Below are the best alternatives for PayPal POS, depending on your business needs.

PayPal Point of Sale alternatives: overview

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		Pricing from
SPONSORED
Epos Now	Square	Shopify	Lightspeed Retail	Clover	SumUp	takepayments
Hardware: from £179 Software: from £25 per month	Hardware: from £19 + VAT Software: from £0	Hardware: from £59 + VAT Software: from £25 per month £1 per month for the first three months	Hardware: from £299 (+VAT) Software: from £75 + VAT per month	Quote-based	Hardware: from £25 + VAT Software: from £0	Hardware: from £12.50 + VAT per month Software: included in hardware cost

Get bespoke quotes from the top providers on the market with our free online tool Compare Quotes

1. Square (best overall)

Like PayPal Point of Sale, Square also has a £0 monthly fee structure. Its transparent transaction fees and quick onboarding help early-stage businesses start accepting payments with no fixed monthly software costs, making it a strong choice for preserving cash flow during the early stages of growth.

✔️Suitable for: startups and small businesses that want an affordable, easy-to-use POS system with room to grow.

❌Not suitable for: hospitality firms needing specific tools like multi-course table workflows and detailed ingredient-level tracking.

2. Shopify POS (best for multi-channel retailers)

While PayPal POS relies on third-party integrations to connect with online stores, Shopify POS unifies online and in-person sales within a single platform.

✔️Suitable for: retailers that operate across multiple channels, particularly businesses with an established ecommerce presence alongside a physical store.

❌Not suitable for: businesses that only operate in-person (such as pop-up stores) and don’t plan to sell online.

3. Lightspeed Retail (best for retailers managing complex inventory)

Lightspeed Retailer is made for inventory-heavy retailers that need better control over purchasing and stock management, with advanced tools to help businesses manage supplier orders, transfer stock between locations, and automate reordering.

✔️Suitable for: established retailers with large inventories, multiple suppliers, or more complex stock management requirements.

❌Not suitable for: market traders and pop-up shops that only need basic payment processing and sales tracking.

4. Epos Now (best for SMEs needing customisable app integrations)

Epos Now offers a scalable approach to POS software, giving businesses access to a wide range of add-on apps as they grow, including loyalty programmes, table management, online ordering, and accounting integrations.

✔️Suitable for: growing retail and hospitality businesses that want a POS system they can customise as their requirements evolve.

❌Not suitable for: startups and sole traders looking for a free or low-cost POS solution, or market traders and pop-up shops that only need basic payment processing.

5. Clover (best for counter-service businesses)

Clover is built around its dedicated POS hardware, offering a modern and responsive checkout experience for both staff and customers through touchscreen terminals, customer-facing displays, and integrated payment processing.

✔️Suitable for: independent retailers wanting a premium countertop checkout experience, or hospitality businesses that need fast and reliable payment processing.

❌Not suitable for: businesses that want to use their own tablets or existing hardware, rather than investing in dedicated POS terminals.

6. SumUp (best for sole traders and microbusinesses)

SumUp focuses on simple and affordable payment processing without a monthly software subscription, offering a straightforward way to take payments without investing in complex back-office tools.

✔️Suitable for: sole traders, market sellers, and small businesses that need reliable card acceptance without the complexity of a full POS system.

❌Not suitable for: businesses needing more advanced retail and hospitality features, or firms operating across multiple locations that need sophisticated reporting and centralised management tools.

7. takepayments (best for merchants looking for dedicated support)

takepayments is aimed at established merchants that want personalised support and tailored payment solutions – such as custom transaction pricing 0 over a self-service software model.

✔️Suitable for: established SMEs that want a more personal approach to payment processing, particularly those that want personalised solutions and to discuss their payment needs with a provider.

❌Not suitable for: low-volume businesses that only need occasional card payments and want to avoid contracts or account discussions.

Our methodology

We explored over 78 areas of investigation, amounting to a total of 22.5 hours of user testing for 26 payment providers, to compare PayPal POS against its major competitors.

We selected six key research areas and then used these findings to produce the above accurate and up-to-date review of PayPal POS.

• Usability (35%): how intuitive the interface is, as well as the speed of checkout workflows and staff onboarding.
• Software capabilities (25%): core till functions, catalogue management, basic inventory tracking, and integrations.
• Pricing (20%): total cost of ownership, upfront commitment, and transparency of transaction fees.
• Help & support (10%): access to 7-day UK support lines, onboarding assistance, and resolution speed during peak trading hours.
• Hardware (5%): support for mobile card readers, tablet POS stand compatibility, and basic till drawers/printers.
• Reputation (5%): trustworthiness in the UK market, user feedback, and the platform’s track record in reliability.

PayPal Point of Sale: Verdict

Overall, PayPal Point of Sale is an excellent choice for early-stage businesses that need a simple and affordable way to start accepting payments.

With no monthly software fees and cheap upfront costs, it allows new traders to get up and running quickly while keeping overheads low.

However, as a business grows, PayPal POS’s simplicity can become a limitation. Specifically, businesses expanding into multiple locations, managing more complex inventory, or needing more advanced operational tools may eventually need a more comprehensive POS system with deeper reporting, workflow management, and customisation options.