Square, SumUp, and Zettle on transaction fees, hardware cost, and features. Find out which mobile card reader is the cheapest and best for your small business.
🏆 The Mobile Payments War: Square vs. SumUp vs. Zettle – Which Reader Wins on Price?
By: Carlos Santos
The democratization of digital payments has been a boon for small business owners, market vendors, and freelancers. The era of bulky, expensive traditional point-of-sale (POS) systems is over, replaced by sleek, inexpensive mobile card readers. These devices—pioneered by giants like Square, SumUp, and Zettle—have radically lowered the barrier to entry for accepting card payments, transforming sidewalk stalls and pop-up shops into fully digitalized enterprises. For any business owner, the decision of which reader to choose often boils down to a single, critical factor: cost. The true price, however, is not just the hardware—it's the hidden percentage taken from every single transaction, the cost of advanced features, and the flexibility of the contract. This analysis will cut through the marketing noise to determine which of these three major contenders—Square, SumUp, or Zettle—offers the most cost-effective solution for different business needs.
I, Carlos Santos, believe that an informed financial decision is the foundation of any successful venture. It is the mission of Diário do Carlos Santos to provide the clarity necessary to navigate complex financial choices.
Breaking Down the Fees: Hardware, Transaction Rates, and the Hidden Costs of Mobile POS
🔍 Zooming In on Reality
The mobile card reader landscape is defined by two fundamental pricing models that appeal directly to the flexibility demands of small businesses: low-cost hardware and pay-as-you-go processing. These providers—Square, SumUp, and Zettle (now primarily marketed as PayPal Zettle)—target merchants who value simplicity and avoiding fixed monthly overheads.
The current reality is that while the purchase price of the physical reader is a one-time expense, the transaction fee is the recurring cost that truly impacts profitability. These flat-rate systems appeal because they roll the complex layers of interchange fees, assessment fees, and processor markups into a single, predictable percentage. However, this simplicity comes with a trade-off. For businesses with very high volume, a fixed flat rate may ultimately be more expensive than a tiered or Interchange-Plus pricing model offered by traditional merchant services.
Another critical aspect of the reality is feature creep. What began as simple card readers has evolved into comprehensive POS ecosystems. Square, in particular, has leveraged its initial hardware advantage to build industry-specific POS software for retail and restaurants, offering staff management, loyalty programs, and inventory control. SumUp and Zettle have followed suit but often maintain a simpler, more streamlined focus, appealing to merchants who only need the core payment function. Therefore, the "cheapest" option depends entirely on the merchant's scale and whether they can utilize these bundled software features. The cheapest transaction fee is irrelevant if the merchant later needs to pay a hefty monthly subscription to gain essential retail functionality that a competitor offers for free. The market reality demands a comparison that goes beyond the basic percentage.
📊 Panorama in Numbers
A direct comparison of the base pricing structures in key markets (like the UK, where data is often clear) reveals distinct cost leaders for different business profiles:
| Cost Component | Square | SumUp | Zettle (PayPal) | Key Insight |
| In-Person Transaction Fee (UK Example) | 1.75% flat | 1.69% flat | 1.75% flat | SumUp is the marginal winner on base rate for pay-as-you-go. |
| Hardware Cost (Base Reader) | Typically £19 + VAT | Typically £22.50 + VAT | Typically £29 + VAT (first reader) | Square is often the cheapest point of entry. |
| Online Transaction Fee (Example US) | 2.9% + 30¢ | 2.5% flat (UK/EU links) or 2.9% + 15¢ (US invoicing) | 2.9% + 30p (UK) | Square and SumUp rates are competitive, but SumUp may offer lower flat rates in certain markets for links/invoices. |
| Monthly Fees (Standard Plan) | None | None | None | All three excel in low entry costs, making them ideal for new merchants. |
| Advanced Hardware (Standalone Terminal) | Square Terminal: £149 + VAT | SumUp Terminal: £121.50 + VAT | PayPal Terminal: £149 + VAT | SumUp generally offers the lowest-cost standalone terminals. |
The data confirms that for pure transaction cost on a pay-as-you-go model, SumUp marginally "wins" with its 1.69% base fee in European markets, being 0.06 percentage points cheaper than Square and Zettle. However, Square compensates with its advanced, feature-rich free software and often the cheapest initial hardware. The figures show that for a business processing a high volume of transactions, the slight difference in the percentage fee, like the 0.06% difference between SumUp and Square, can accumulate into significant savings over time.
💬 What People Are Saying
The general sentiment among small business owners highlights a clear preference for either simplicity (SumUp) or advanced features (Square), with Zettle often positioned in the middle, benefiting mainly from its seamless integration with PayPal.
SumUp users often praise its straightforward, no-frills approach and the consistently lowest base transaction fee. The consensus is that SumUp is the best choice for "budget setups" and merchants who are "just starting" or want "the lowest transaction fees". The platform is highly recommended for market traders or service providers who only need to accept card payments quickly and reliably.
Square users consistently point to the superior ecosystem and software as the winning factor. While the transaction fee is marginally higher, merchants find the value in the "advanced features", such as the ability to create custom receipts, loyalty programs, and use industry-specific POS systems for retail and hospitality. The prevailing view is that "Square is a better value if you plan to scale or if you want multiple tools under one roof".
Zettle (PayPal) users typically appreciate the brand's association with PayPal and the potentially faster payout times when integrated directly with a PayPal wallet. However, some critical voices note that Zettle's ecosystem and feature set can feel "more limited than those offered by Square". The market largely views Zettle as a reliable, mid-range choice, often benefiting from merchants already rooted in the PayPal ecosystem.
🧭 Possible Paths
The choice between these three platforms is not about finding a universally "cheaper" option, but about selecting the most economically sensible path for a specific business stage and operational model.
The "Minimalist Merchant" Path (SumUp): This path is ideal for small businesses, freelancers, or services with low transaction volumes and minimal inventory needs. They prioritize the lowest possible transaction fee (1.69% in the UK) and minimal hardware cost. This merchant needs a solution that is simple, portable, and has no hidden monthly fees. SumUp is the clear winner here, offering simplicity and affordability, and is well-suited for European markets.
The "Scalable System" Path (Square): This path is for the merchant who anticipates rapid growth, manages complex inventory, or operates a retail/restaurant location. Although the base transaction fee is slightly higher (1.75% in the UK), Square's superior free POS software for managing staff, advanced reporting, and loyalty programs justifies the cost. The long-term savings from efficient operation and better customer retention outweigh the fractional difference in transaction fees. Square is the preferred choice for businesses looking for a complete system.
The "PayPal Ecosystem" Path (Zettle): This path is for merchants who heavily rely on PayPal for online payments and want seamless integration between their physical and digital sales channels. While Zettle's base fee is similar to Square (1.75%), the ease of managing all funds through one PayPal account and the benefit of potentially faster payouts via the PayPal wallet can be a significant operational advantage. The choice here is driven by operational convenience rather than pure price.
🧠 Food for Thought…
The competition between Square, SumUp, and Zettle prompts a deeper reflection on the nature of financial inclusion and invisible taxation on small commerce.
While these mobile readers are hailed for democratizing payments, the flat transaction fee—regardless of its size—represents a non-negotiable tax on revenue for every small business. The fact that the average credit card processing fee falls between 1.5% and 3.5% per transaction means a significant portion of the global micro-economy is permanently funneled to payment processors and card networks. The question for policymakers and financial innovators is: is there an ethical ceiling to these fees? Should small, community-based businesses be charged the same percentage fee as a large multinational retailer?
Furthermore, consider the implications of advanced hardware costs. Square's ecosystem, while powerful, steers businesses toward purchasing more expensive standalone terminals (£149) for full functionality, potentially excluding the most cost-constrained micro-merchants. The choice of payment provider subtly dictates the future technological evolution of the business. Merchants must be critical of whether they are truly buying a simple payment solution or unwittingly subscribing to a complex, evolving hardware and software platform that might prove too costly to exit down the line. The price comparison, therefore, must be viewed through a critical lens of long-term economic sustainability.
📚 Starting Point
The starting point for any business owner evaluating these mobile readers should be a meticulous comparison of the total cost of ownership (TCO), not just the advertised transaction percentage.
Analyze Your Transaction Volume and Average Ticket Size: Use this data to calculate the monthly cost difference between the 1.69% fee (SumUp) and the 1.75% fee (Square/Zettle). This reveals the true savings potential.
Determine Your Required Features: If you need inventory tracking, employee management, or specialized retail POS, you must factor in the monthly cost of a paid subscription (which Square offers for retail/restaurants) versus the free features offered by competitors. The free version of Square's app is superior to its rivals.
Study Non-Standard Fees: Look for hidden fees for chargebacks (SumUp charges £10 per case), processing international cards (which can incur higher rates), and instant payouts (where some platforms charge 1%). These are the costs that often surprise merchants.
Hardware Needs: Decide if a basic Bluetooth reader (e.g., Square Reader at £19 or SumUp Air at £22.50) is sufficient, or if you need a standalone terminal (like the Square Terminal or SumUp Terminal) that eliminates the need for a smartphone. This initial investment can significantly alter the TCO.
📦 Box Informativo 📚 Did You Know?
The flat-rate pricing models of Square, SumUp, and Zettle simplify life for merchants, but they also obscure the complex network of fees underneath. Did you know that the transaction fee you pay is primarily composed of three components?
Interchange Fees: This is the largest component, paid by the processor to the customer's bank (the card-issuing bank). These fees vary significantly based on the card type (e.g., a standard debit card versus a premium rewards credit card) and the transaction type (in-person is cheaper than online/e-commerce).
Example: A Visa retail (in-person) transaction might have an interchange fee around 1.43% + $0.10, while an e-commerce transaction might be closer to 1.89% to 2.30% + $0.10.
Assessment Fees: These are small fees charged by the card networks themselves (Visa, Mastercard, etc.).
Processor Markup: This is the fee the payment processor (Square, SumUp, Zettle) charges on top of the interchange and assessment fees to make a profit.
The flat rate (e.g., 1.75% for Square) is essentially the processor's way of absorbing all those varying interchange and assessment fees and giving the merchant one simple, predictable number. This is great for predictability, but it means that merchants processing mainly low-cost, basic debit cards may actually be overpaying compared to an Interchange-Plus model.
🗺️ Where to From Here?
The trajectory of mobile payment solutions points toward even greater integration and specialization. The payment hardware is quickly becoming obsolete, replaced by software solutions.
One major future trend is Tap to Pay on Phone functionality, where no external reader is needed, and the merchant's smartphone acts as the terminal. Square, SumUp, and Zettle are all implementing this, reducing the hardware cost to zero. This will intensify the competition solely on the transaction fee and the software ecosystem.
The next significant development will be the increasing specialization of POS systems. Square is already ahead with tailored solutions for retail and hospitality. In the future, we will see highly specialized software bundles—for example, a "Landscaper Edition" of a POS that integrates scheduling and invoicing, or an "Artisan Edition" that links sales directly to raw material inventory. The winner on price will ultimately be the platform that provides the most valuable and specialized software features for free, thus making the slightly higher transaction fee irrelevant compared to the operational savings. The future of the mobile payment war is fought not on the chip reader, but on the code behind the app.
🌐 Tá na rede, tá oline
"O povo posta, a gente pensa. Tá na rede, tá oline!"
Online discourse regarding these mobile readers is dominated by direct comparisons and troubleshooting. On platforms like Reddit's small business communities, the most frequent topics are "My SumUp transaction failed, should I switch to Square?" or "Is Zettle's integration with PayPal worth the 1.75% fee?"
The collective online wisdom reinforces the split decision: SumUp is consistently praised for being the simplest, least complicated device, favored by those who need to "get selling fast". Conversely, when users begin discussing inventory sync, staff permissions, or loyalty programs, the conversation invariably shifts to Square's superior depth of features. The key takeaway from the network is that price is the entry point, but the ecosystem determines loyalty. Merchants actively seek community validation for their costly decision, underscoring the trust these services demand. The sentiment online serves as an essential, real-time feedback mechanism on both the reliability of the hardware and the true hidden costs of the software.
🔗 Anchor of Knowledge
The decision between Square, SumUp, and Zettle is part of a larger, systemic shift in the financial landscape, where technology is constantly challenging traditional banking models. The same principles of security and regulatory compliance that govern mobile payments are crucial in understanding how financial institutions protect consumer data. For a critical deep dive into how banks are responding to these evolving technological and security demands, focusing on the crucial need for enhanced cybersecurity education, clique aqui to continue the reading and explore this essential topic.
Final Reflection
The mobile reader debate is a microcosm of modern commerce: a battle fought on razor-thin margins and technological ecosystems. While SumUp currently holds the narrowest lead on the base transaction fee, true cost-effectiveness is a function of the merchant's ambition. Square offers the best value for the scalable, ambitious business, while SumUp remains the champion for the minimalist, cost-sensitive entrepreneur. The ultimate winner on price is the merchant who chooses the solution that fits their operational reality, ensuring that every cent saved on fees is not lost to inefficiencies or the later cost of a necessary upgrade. Choose wisely, for the price of your payment system shapes the future of your profit margin.
Featured Resources and Sources/Bibliography
Card Machine.co.uk: Card Reader Comparison 2025: Best Options for Small Business.
Noda: SumUp vs Zettle 2025: Full Breakdown for Online Merchants.
WP EasyPay: SumUp vs Square [Detailed Comparison 2025].
Expert Market: SumUp vs Square: We Compare Pricing & Features.
Mobile Transaction.org: Square vs SumUp vs PayPal (ex-Zettle): compare the UK's best card readers.
Business Expert: Top 9 Square Competitors in 2025.
Mobile Transaction.org: PayPal (ex-Zettle) vs SumUp: cheap card readers, increasingly different.
NerdWallet: Credit Card Processing Fees: A 2025 Guide for Businesses.
Stripe: Pricing & Fees.
Stax Payments: 2025 Merchant Credit Card Fees Explained.
Square: Learn about Square fees.
TechRadar: Best mobile credit card processor of 2025.
Forbes Advisor: 10 Cheapest Credit Card Processing Services Of 2025.
Metrobi: The 10 Best Credit Card Machine for Businesses in 2025.
Merchant Savvy: Square Vs Zettle Vs SumUp - Which Is Best For UK SMEs.
Tapp Remote: Square vs Zettle: Which One Is The Best for You?
Merchant Savvy: Square Reader vs Zettle 2: Which Is Best For Small Businesses in 2024.
Entrepreneur Hero (YouTube): SumUp vs. Zettle vs. Square.
Forbes Advisor: SumUp Vs. Square POS Comparison.
SumUp: SumUp vs Square | Why choose SumUp? | Compare Payment Providers.
⚖️ Editorial Disclaimer
This article reflects a critical and opinionated analysis produced for Diário do Carlos Santos, based on public information, news reports, and data from confidential sources. It does not represent an official communication or institutional position of any other companies or entities mentioned here.
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