PayPal Point of Sale vs Square: which is better for taking payments? PayPal Point of Sale and Square are two of our top-rated POS systems - but there are also some significant differences that impact what you'll get for your money. Find out which one is best for your business. Written by Helena Young Updated on 16 February 2026 Our Research Our expert team of writers and researchers worked to identify the best payment processing and merchant account providers by focusing on the factors small businesses care about most – value for money, including fees and hidden extras; security protocols and fraud protection; customer support, and ease of access across platforms including mobile. 1 of 3 Square - Limited time: 25% off Square Reader or Terminal Learn more 2 of 3 PayPal Point of Sale - Free to get started Learn More 3 of 3 Get matched with our providers Learn More 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. Square and PayPal Point of Sale (previously known as Zettle) are two of the biggest rivals in the payment processing space. They share many traits like having modern, sleek hardware and cheap POS pricing with no upfront fees. They’re also two of the best free POS systems on the market.Though having researched 11 of top POS systems (with six main testing categories), we found that Square is the best POS system for UK small businesses, thanks to its usability and excellent range of card machines and terminals. Though PayPal Point of Sale is one of the simplest POS systems we’ve tested, that simplicity does come at the cost of some more advanced functionality. 0 out of 0 backward forward Monthly fees: Card reader cost Card present transaction fees Free trial? Customer Support Square PayPal Point of Sale Zero Zero £19 + VAT £29 + VAT for your first card reader (price then goes up to £69 + VAT) 1.75% 1.75% Email, live chat, and phone support (only available during working hours) Email, live chat, and phone support (only available during working hours) Keep reading for an in-depth comparison between PayPal Point of Sale and Square. By the end, you’ll know which has the best value for money, which is best-suited to retail or hospitality, and which came out on top during our extensive user testing. In this article, we cover: PayPal Point of Sale vs. Square: summary PayPal Point of Sale vs. Square: which is better value for money? PayPal Point of Sale vs. Square: software features PayPal Point of Sale vs Square: ease of use PayPal Point of Sale vs Square: hardware PayPal Point of Sale vs Square: set up PayPal Point of Sale vs Square: security Square and PayPal Point of Sale alternatives Final verdict Our methodology PayPal Point of Sale vs Square: interviews with business owners Compare POS costs with ease To save yourself time and money, we’ve developed a simple 🔍POS cost comparison tool, which you can use for free. You just need to answer a few simple questions about the needs of your business, and you’ll be given personalised quotes from top brands in the POS market. PayPal Point of Sale vs Square: summaryWe carried out a mix of user testing and consumer research to reach a conclusion on these two POS systems. Both are easy-to-use software products with brands that carry out consistent updates – although Square performed much more strongly in most of our key testing areas than PayPal Point of Sale did.The biggest difference between the two, however, is in their primary consumer base. Our full Square POS review details how the platform is suitable for both basic and more advanced operations, while PayPal Point of Sale is more suited to simple, single-location businesses.Affordability is, of course, a big concern for small business owners at the moment when it comes to small business POS systems. Neither Square nor PayPal Point of Sale charges monthly fees for the entry level plans, which is great for business owners on a limited budget.In terms of low-cost card readers, Square just takes the crown here with a card reader that costs £19 + VAT. The PayPal Reader, in comparison, starts from £29 + VAT (this is the price for your first card reader, the full price is £69 + VAT).Square: overviewSquare’s POS excels in usability. It also provides options for scaling your business with industry-specific plans for both restaurant and retail, as well as boasting an extensive ecosystem of apps. Plus, it comes with handy reporting features for multi-location businesses, like the ability to compare performance across different locations in a single dashboard view. Square Visit Square Starting software price: Free plan Transaction fees from: From 1.75% Specific plans for both retail and restaurants, providing industry specific features An extensive ecosystem that allows you to create websites, email marketing and loyalty programmes, all under the same roof Free plan provides a low-cost option for businesses just starting out Summary Square is headed up by Twitter co-founder Jack Dorsey. Specifically designed for small to medium-sized businesses, it leads the US market for POS systems, currently serving four million clients. Show moreless Pros The POS system is the easiest-to-use out of all the platforms we tested You get a free online site included with Square Square has a range of plans to choose from covering specific industries, whereas PayPal Point of Sale is less flexible and has only one plan Cons Some of Square's more advanced features, such as loyalty management, cost extra No training mode available on tills to help new staff (not available with PayPal Point of Sale either) PayPal Point of Sale: overviewPayPal Point of Sale is simple, free, and while it may lack some advanced POS functionality, it’s a great choice for single location and on-the-go businesses (like a food truck for example, or pop-up retail shop). The small, lightweight card reader is a solid asset for the growing pop-up and market stall economy in the UK. PayPal Point of Sale Compare Quotes 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 The simple and easy to use POS platform is great for small, single location businesses The free plan is great for merchants who are on a tight budget, and only have a small number of items to sell PayPal Point of Sale connects seamlessly to the PayPal ecosystem: this will be an easy choice if you're already using PayPal for online payments Cons PayPal only integrates with a few dozen add-ons, while Square users can access a library of hundreds of apps PayPal Point of Sale is limited to the free plan only, whereas Square provides scalability with industry-specific premium plans PayPal Point of Sale vs. Square: which is better value for money?In terms of pricing, there’s not much that divides these two platforms: both offer free plans, both have the same 1.75% transaction fee, and both their terminals cost £149 + VAT.So what do you get for your money? Take a look at the table below for an at-a-glance understanding: 0 out of 0 backward forward Best for Suitable for retail and hospitality? Card reader cost Card present transaction fees Terminal pricing Cards accepted: Minimum sales volume: Free trial? Payment links: Refunds? Customer Support Square PayPal Point of Sale Small businesses wanting to scale and grow Food trucks and on-the-go businesses £19 + VAT £29 + VAT for your first card reader (price then goes up to £69 + VAT) 1.75% 1.75% £149 + VAT £149 + VAT All major credit or debit cards as well as mobile wallets such as Apple, Google, and Samsung Pay. All major credit or debit cards as well as mobile wallets such as Apple, Google, and Samsung Pay. None, although there is a minimum payment amount of £1 None, although there is a minimum payment amount of £1 (maximum £5,500 with manual card entry) Free Free Email, live chat, and phone support (only available during working hours) Email, live chat, and phone support (only available during working hours) You can see why people have a hard time choosing between Square and PayPal Point of Sale for pricing. Though PayPal Point of Sale’s card reader is more expensive than Square’s, which could be enough to sway some people.But the best way to work out which platform has the best value for money is to think about your own business operations. Square is a better choice for online sellers for example, thanks to the seamless connection with Square Online, with which you can build your own online store from scratch. PayPal Point of Sale vs. Square: software featuresSquares extensive features showcased at the “I Got That Crystal Healing” store. Source: Startups.co.ukPOS software features is an area where Square clearly pulls away from the competition, with its diverse arsenal of tools being one of the biggest selling points for our testers.These are split between specific plans for both retail and restaurant businesses, with the two plans providing industry targeted features (something PayPal Point of Sale lacks).PayPal Point of Sale, meanwhile, provides a more stripped back approach to taking payments. Its focus is on selling, with one a one-size-fits-all POS software that lacks some advanced functionality.Key featuresSquare comes out ahead with included features like standard next-day transfer and being able to access your funds in minutes for no additional cost (PayPal Point of Sale can take between one to two business days). Liquidity is king in 2026, as a volatile economy will put the pressure on getting your cash as quickly as possible.Another key strength of Square’s is its wide ecosystem of products. With Square, you get access to a completely free online store (including website templates) and you can also also access email marketing and loyalty programmes. Square Loyalty even comes with built-in CRM tools so you can provide a personalised customer experience (Square Loyalty starts from £25 per month).For hospitality owners, online ordering and basic POS functionality is standard with the free plan (like menu and table management), but larger and multi-location restaurants will most likely need the Square for Restaurants Plus plan. This includes advanced functionality like:Splitting bills by item and by seatSeat managementCourse managementCustomisable floor plansLive sales reporting24/7 supportThat’s not to say that PayPal Point of Sale’s software isn’t the best option for other businesses. Fuss-free, PayPal Point of Sale’s system is a fine choice for very small retail businesses and counter service hospitality businesses. And with the option to activate its repeat payment option, it’s not a bad choice for buskers and nightclub entry booths, either.PayPal Point of Sale also includes customisable gift cards in the free plan, although it cannot provide physical gift cards like Square can.IntegrationsThis is another key area where Square outperforms PayPal Point of Sale, thanks to the extensive Square App Marketplace.PayPal Point of Sale can sync up with a range of third-party apps, including big names like Adobe Commerce, BigCommerce, Shopify, QuickBooks, and Goodtill. However, it’s currently limited to only a few dozen integrations, whereas Square’s marketplace can connect the POS with hundreds of other apps.Square permits accounting, restaurant management, delivery and order management, and inventory management to build a full-functioning library of apps and add-ons. Being able to connect your POS system to accounting software is vital for compliance, especially in regards to HMRC’s Making Tax Digital system.Conversely, PayPal Point of Sale’s offering is limited to accounting and ecommerce. This means that, unlike Square users, PayPal Point of Sale fans won’t be able to woo their customers with clever features like TapTable’s contact-free menu, for example.Stock managementPayPal Point of Sale does include inventory management and (like Square) it sends you alerts if your stock is getting low. That’s a feature we particularly recommend SME users look out for as it can help you identify the products that are proving most popular when starting out.We also like that PayPal Point of Sale lets users carry out bulk-product imports which is a big benefit if you’re a small seller with miniature product lines.Square does take the cake overall for stock management, though. Its automatic restock feature is a huge time-saver for businesses, particularly dropshippers that sell at unconventional hours. Square AI: a new tool for business owners In February 2026, Square announced the arrival of Square AI. No longer about just taking payments, Square AI is a completely free tool built into the platform that can help business owners with:Deeper contextual insights, such as combining your own data with weather info, so you can better prepare staffing and inventory.Real-time insights with generated charts to so you can better identify key trends.Tracking your insights over time, such as when a promotion made a financial difference.Square AI is a conversational AI-assistant, and it can act as a crucial profit guard for business owners in 2026. PayPal Point of Sale vs Square: ease of useWe were thoroughly impressed with how easy to use the Square Terminal was. Source: Startups.co.ukIn our latest testing, Square came out as by far the easiest-to-use POS system. Not just between Square and PayPal Point of Sale either, but out of all the POS systems we tried. PayPal Point of Sale is good, but in our testing, we felt Square’s navigation was just that bit sleeker.The extremely intuitive interface means that Square is a very easy system to get to grips with, making it a great choice for first-time business owners. That’s not to say PayPal Point of Sale was difficult to use. On the contrary, its strength is its simplicity, and its straightforward interface made tasks like adding products reassuringly easy. However, it still couldn’t beat Square.Square for Restaurant’s ordering screen is highly intuitive, so your staff should find it quick to learn. Source: Startups.co,ukBoth are simple and intuitive systems, but in our testing, Square’s usability ultimately came out on top. This will be particularly important for the current hospitality hiring crisis, as you should be able to get staff “till-ready” in a short amount of time. If you do encounter an issue, Square and PayPal Point of Sale have online knowledge centres that can be accessed at any time – helpful if you trade during unsociable hours. However, actual customer support is only available during working hours (Monday-Friday, 9am-5pm).Though if you pay for Square for Restaurants Plus or Square for Retail Plus, you can access 24/7 phone support. PayPal Point of Sale vs Square: hardwareYou can access business management features directly from the Square Terminal. Source: Startups.co.uk.Another area where Square comes out on top is its impressive range of card readers and POS terminals.Square’s hardwareSquare has an impressive range of first-party hardware, from the basic Square card reader, to the high-end Square Register.The Square Reader is very basic: rather than keying in their pin number on the card reader device itself, customers need to type their pin into the mobile or tablet hosting Square’s POS software. This could create an accessibility issue for customers (optician businesses are an extreme example).We were able to test out the Square Terminal for ourselves, and were impressed with the sleek interface which made navigation easy, including making quick adjustments on the fly.The Square Terminal is the all-in-one solution for businesses, and comes with a built-in printer. Source: Startups.co.ukLast year, Square introduced the Square Handheld into its lineup. This is its pocket-sized POS device, which includes new native features like item-splitting and a Scan-to-Pay QR code. The Square Terminal (while still being portable) is designed to mostly live on the countertop, while the Square Handheld is made to be carried around by staff.The Square Register is the premium, dual-screen till system. It has the POS software pre-installed on it, and you can take payments through its own payment terminal. It’s not a low-cost bit of kit though, coming in at £599 + VAT. There’s also the the Square Stand, which is a lower cost method for turning an iPad into a POS terminal.PayPal Point of Sale’s hardwareAs we outline fully in our guide to the best card readers for small businesses, the Zettle Reader 2 (the PayPal Point of Sale card machine which we tested) is a small, basic, and lightweight card reader. This reader is all about the basics so if you only need to take payments in the simplest way possible, the Zettle Reader 2 will get the job done. PayPal Point of Sale also provides the more modern PayPal Card Reader, which features a larger screen than the Zettle Reader 2. There’s also the PayPal Terminal, which is a competitor to the Square Terminal. It’s an all-in-one POS system, and you can also embed a barcode scanner (bringing the price to £199 + VAT).Though currently PayPal Point of Sale doesn’t provide a designated countertop till system that’s a rival to the Square Register, it does sell its own tablet stand, that you can use with an iPad.AccessoriesBoth Square and PayPal Point of Sale provide a range of accessories such as barcode scanners, cash drawers and receipt printers to make sure your business is fully stocked. Though we would suggest using digital receipts for your customers, not just as a way of helping the environment, but to garner more positive online reviews.In addition to the accessories listed above, Square can also provide a kitchen touchscreen display, and the Square Kiosk: an iPad-based self-service device. PayPal Point of Sale vs Square: set upSetting up the Zettle Reader 2 was quick and easy. Source: Startups.co.ukPayPal Point of Sale and Square card machines are equally as easy to set up. All you need to do is order your point of sale products from their online stores, download the app, and follow the instructions. Initial setupOnce you’ve downloaded the app, you’ll be asked to fill in some basic information about your business. You’ll also be asked to provide your business bank details for payments. Both Square and PayPal Point of Sale require you to have a business bank account, or a bank account in the name of the company director. They’ll also run a credit check. If you or your business is deemed high risk – if you operate in an industry with a high rate of expensive refunds, for example – then they may not accept you. Pairing your equipmentPairing either card reader with its respective app is really intuitive. Just follow the simple directions on the app, and you can get set up within under five minutes. Because both systems communicate via Bluetooth, connecting receipt printers is simple too. For both PayPal Point of Sale and Square, simply head into the settings tab of your app and select the piece of equipment you’d like to connect. PayPal Point of Sale vs Square: securityBoth PayPal Point of Sale and Square have strong security. While some people may have reservations about the Square Reader’s pin entry (entering into a mobile phone or tablet, rather than into the card reader itself), Square has gone a long way to reassure people that its payment system is safe. Square’s payment system adheres to PCI Compliance Level 1 – the strictest security standards out there – and all its hardware has been installed with end-to-end encryption. PayPal Point of Sale’s payment system is highly secure too. It’s PCI DSS compliant, and it’s been approved by Europay, Mastercard, and Visa. Square and PayPal Point of Sale alternativesSquare and PayPal Point of Sale are both solid options for taking payments, but there are a few brands out there that will be more-suited to certain types of small business users. For example, Lightspeed.Lightspeed is an incredibly powerful software product that boasts some of the most impressive tools for driving customer engagement we’ve seen. But it comes with a matching price tag that only ambitious SMEs will be able to afford of £69 per month (billed annually) for restaurants, and £75 per month (billed annually) for retailers.If you’re looking for a full POS system, here’s how the top brands compare in terms of cost: 0 out of 0 backward forward Pricing from SPONSORED Hardware: from £249Monthly subscriptions: from £25 per month Hardware: From £239Software: from £25 per monthCurrently £1 per month for the first three months on select plans Hardware: from £450 + VATSoftware: Currently from £9.99/month (18-month contract) Hardware: from £135 + VATSoftware: free Hardware: quote-basedSoftware: from £80 per month Hardware: quote-basedSoftware: from £69 per month Hardware: from £45 per month (£250 setup fee)Software: included in hardware cost Final verdictIn a game of Square versus PayPal Point of Sale, Square performed much more strongly in our latest POS testing. However, that doesn’t mean it will be right for every business. Both are on an equal footing when it comes to the payment services they offer with the exact same transaction fees (1.75%), refund charges (none), and terminal cost (£149 + VAT). Still, they definitely have their USPs. Square is our ultimate choice for ecommerce and online sales, as a platform that streamlines digital payments and integrates with other virtual business functions like marketing and accounting tools. PayPal Point of Sale, in comparison, has a straightforward and user-friendly app that’s great for simple on-the-go businesses like a food truck. Get started with Square Visit Square now for more information on the low-cost Square Reader. Try Square for free It's 100% free to get set up. Our methodologyOur in-house research department combined hours of hands-on user testing, combined with industry research, to ensure our reviews are as accurate and helpful as possible.We carried out two separate rounds of testing: one focused solely on card machines, and another that was specifically for POS systems.POS systems: We tested and evaluated 11 of the top POS systems, including PayPal Point of Sale (then Zettle) and Square. This amounted to 40 user testing sessions, across six main testing categories: hardware, software, help and support, reputation, pricing, and usability.Card machines: We also separately tested and evaluated 18 top card machines, including the Square Terminal and the Zettle Reader 2 (Zettle has now become PayPal Point of Sale), rating them on the key factors most relevant for SMEs. This included a total of 22.5 hours of hands-on user testing. 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 Written by: Helena Young Deputy Editor Helena is Deputy Editor at Startups. She oversees all news and supporting content on Startups, and is also the author of the weekly Startups email newsletter, delivering must-know SME updates straight to their inbox. From interviewing Wetherspoon's boss Tim Martin to spotting data-led working from home trends, her insight has been featured by major trade publications including the ICAEW, and news outlets like the BBC, ITV News, Daily Express, and HuffPost UK. With a background in PR and marketing, Helena is particularly passionate about giving early-stage startups a platform to boost their brands. That's one reason she manages the Startups 100 Index, our annual ranking of new UK businesses.