In 2026, PayPal Point of Sale (previously PayPal POS) remains one of the most popular ways for UK small businesses to accept card payments and manage their operations. The company began in Sweden in 2010 as iZettle, and PayPal picked it up in 2018 for $2.2 billion.
Since then, it’s become a full point of sale system for businesses in several countries. The system combines mobile card readers with software that lets businesses accept payments, track sales, and manage inventory all in one place, with pricing unchanged heading into 2026.
Whether you’re running a coffee shop, retail store, or something more niche, PayPal Point of Sale offers flexible hardware and a genuinely user-friendly app. The platform supports chip and PIN, contactless, and mobile wallet payments, all while meeting international security standards.
The service adapts to different business needs. You can use Tap to Pay on a smartphone, grab a portable card reader, or go for an all-in-one terminal with built-in software.
Funds usually hit a PayPal balance within minutes for new PayPal Business accounts. If you’re coming from PayPal POS, it’s around 1-2 business days.
- Flat 1.75% transaction rate - Simple pricing structure with no monthly fees or hidden charges for UK small businesses
- Best for PayPal users - Seamless integration with existing PayPal business accounts and online payment processing
- Limited advanced features - Basic POS functionality compared to comprehensive systems like Clover or Lightspeed
- Cheaper than Square by 0.04% - Marginal cost advantage over Square’s 1.79% rate for in-person card payments
- Card readers from £59 - Affordable hardware entry point with tap, chip, and PIN payment acceptance
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What Is PayPal Point of Sale (formerly Zettle)?
PayPal POS (formerly Zettle/iZettle, acquired for $2.2 billion in 2018) charges 1.75% per in-person transaction with no monthly fees and a £29 card reader.
PayPal Point of Sale is a mobile POS system that helps businesses accept payments, manage inventory, and track sales through a free app and affordable card readers. As of 2026, it’s one of the UK’s most widely used mobile payment platforms for small businesses. It replaced PayPal Here in 2021 and brings tools for both in-person and online transactions.
Overview of the POS System
PayPal Point of Sale works as a complete payment solution for small and medium-sized businesses. The free mobile app turns smartphones or tablets into a working POS system.
Businesses can accept credit and debit cards from Visa, Mastercard, American Express, and Discover. The system also supports contactless payments like Apple Pay, Google Pay, and Samsung Pay, as well as PayPal and Venmo.
The app includes business management tools. You can build product libraries with photos and track inventory levels, getting alerts when stock runs low.
It generates daily sales reports and lets you keep an eye on staff performance. Payment processing is flat-rate: 1.75% for in-person card and contactless transactions, 3.4% + £0.20 for manual card entries, and 2.9% + £0.30 for PayPal Checkout/invoices.
Transition from PayPal POS
PayPal bought PayPal POS (formerly iZettle) in 2018 and gradually brought it into their business offerings. They rebranded PayPal POS to PayPal Point of Sale but kept the core features intact.
PayPal POS users kept their accounts and could still log in as usual. The main changes were in the product name and visuals, not the features.
PayPal Here, the previous POS option, was phased out in favour of this more advanced system. That move gave PayPal a bigger presence in the in-person selling space.
Some account holders still see both names in different places. The system remains compatible with hardware bought under the PayPal POS brand.
Key Use Cases for Businesses
Small retail shops like the straightforward setup and the low upfront cost. The first card reader is just £29, which suits tight budgets.
Shops can manage inventory, accept all sorts of payments, and track sales without any monthly software fees. Cafés and food vendors use the mobile system for fast transactions during busy spells.
Contactless support speeds up service for customers paying with phones or tap-to-pay cards. Owners can track best-selling menu items through the reporting features.
Market stalls and mobile businesses benefit from portable card readers. The system works anywhere with internet, so traders can accept cards at outdoor events or pop-up locations.
The Store Kit Portable option even includes a printer for receipts right at the stall. Service businesses like salons and barbers use the system to process payments and handle appointments.
They can enter card details for phone bookings or send payment links to customers. The staff tracking feature helps owners see how each employee is doing.
Core Features and Functionality
Three setup options: Tap to Pay (no hardware), PayPal Reader (£29), and Terminal (£149) – all with a free iOS/Android app, no subscription, and minutes-to-settlement.
PayPal Point of Sale gives you the basics for managing transactions and business operations through its POS app. It processes card payments, tracks sales, and offers flexible payment options for businesses of all sizes.
Customisable POS Solutions
There are three main setup options. Tap to Pay turns any compatible smartphone into a payment device with no extra hardware needed.
You just download the POS app from the App Store or Google Play and start taking contactless payments. The PayPal Reader is a dedicated card reader with a large touchscreen, connecting via USB-C or Bluetooth.
The first reader costs £29, and extras are £69 each. The all-in-one Terminal is the most comprehensive option. It’s portable, has the POS software built in, and doesn’t need a separate phone or tablet.
Set up any of these in minutes and choose what fits your needs and budget.
In-Person Payment Capabilities
The system processes card-present transactions at 1.75% per sale with no fixed per-transaction fee. You can accept payments at your counter or on the go, managing products and sales from your phone or tablet.
Funds from sales arrive quickly. New PayPal Business accounts usually see funds within minutes, while existing PayPal POS users wait a day or two.
The software covers product and inventory management. Staff can track every sale and keep tidy records through the app.
Contactless and Tap to Pay Options
PayPal Point of Sale fully supports contactless payments. Customers just tap their cards or devices for speedy checkout.
The system accepts digital wallets linked to PayPal’s payment network. Tap to Pay lets businesses take contactless card payments directly through a smartphone with the POS app.
This is ideal for market stalls, pop-ups, or service providers who travel to clients. All hardware options support stable connections, so you don’t have to worry about dropped payments.
The PayPal Reader connects either by USB-C or Bluetooth.
Detailed Reporting and Insights
The POS system generates detailed business reports. You can monitor sales activity, check transaction history, and spot trends right in the app.
Accessing this data helps with decisions on inventory and staffing. The software keeps records for bookkeeping and planning. Reports are available in-app for quick checks during the day.
Track individual product performance and see what’s selling best. The data really does help identify peak sales periods and popular items.
Hardware Options and Integration
The £29 card reader is P2PE certified with USB-C and Bluetooth, while the £149 terminal includes built-in Wi-Fi and SIM card for mobile connectivity.
PayPal Point of Sale comes with three main hardware setups: a mobile card reader that works with smartphones or tablets, various add-ons, and standalone terminals with built-in software. Each option uses encrypted payment processing to keep transactions secure.
PayPal Reader and Card Reader
The PayPal Reader connects to your phone or tablet via Bluetooth. It handles contactless, chip, and magnetic stripe cards.
The device costs £29 for the first reader, and £69 for additional readers (not including VAT). To set it up, just download the PayPal POS app to your device, pair the reader, and you’re ready to take payments.
The hardware is Point-to-Point Encryption (P2PE) certified, so transactions stay secure. It’s compact, comes in white or black, and uses UV fade-resistant plastic.
The reader processes contactless payments in seconds, which is handy if you want to keep queues moving.
Flexible Hardware Additions
You can add hardware to customise your setup. The PayPal Tablet Stand rotates and tilts for different counter heights, or can be fixed in place if you want a permanent installation.
The system supports Tap to Pay on compatible devices, so you might not even need extra hardware. Barcode scanners are available too, integrating with the terminal for inventory control.
All these bits connect to the existing POS system, and you don’t need to install separate software.
All-in-One Terminals
The PayPal Terminal is a standalone device with the POS software built in. It costs £149 for the terminal, £199 with the integrated barcode scanner, or £249 for the full bundle including scanner, printer and dock (all prices exclude VAT).
No need for a separate phone or tablet. The terminal includes Wi-Fi and comes with a SIM card for mobile data, already covered in the price.
It manages both payments and back-office tasks through its built-in app. The portable design means you can move around your premises and still take payments.
The big screen gives staff and customers a clear view during transactions.
POS Software and App Experience
The free PayPal POS app handles payments, sales tracking, and inventory management across multiple devices with per-employee sales tracking and no monthly fees.
The PayPal POS app is a free software solution for both iOS and Android. Businesses can download it at no cost and use it to process payments, track sales, and manage inventory with no monthly subscription fees.
Free POS App Overview
The PayPal POS software is free to download, with no ongoing charges. You only pay transaction fees: 1.75% for in-person card and contactless payments.
Core features include payment processing, sales tracking, and inventory management. The app works on smartphones and tablets, so you might not need extra hardware unless you want it.
After downloading the app and setting up a PayPal business account, you can accept payments immediately. Tap to Pay lets you take contactless payments straight through your phone.
App Store Availability
The PayPal POS app (formerly Zettle) is available for iOS on the Apple App Store and for Android on Google Play.
It works on iPhones and iPads with recent iOS versions. Android users need NFC support to use Tap to Pay. The app updates automatically through the app stores.
Staff can log in on multiple devices, keeping data in sync across phones and tablets. That’s handy if you’ve got a team working at the same time.
Managing Business Operations
The app helps you manage products, sales, and inventory from one place. Create a product catalogue with categories, barcodes, and photos.
The inventory system tracks stock and updates automatically with every sale. Sales management features let you:
- View transaction history and sales reports
- Process refunds and exchanges
- Track payments by staff member
- Export data in PDF and Excel formats
Multi-user functionality means staff can use the same terminal, but keep sales separate. This makes end-of-day checks easier and helps owners see how everyone’s doing.
The app automatically records customer data, including contact info for future marketing. You’ll need Wi-Fi or mobile data to process transactions, as there’s no offline mode – so a reliable internet connection is a must.
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Payment Methods and Security
Hardware is PCI PTS 4.1 certified (highest level) with HSM encryption and self-destruct tamper protection, regulated by the FCA as an electronic money institution.
PayPal Point of Sale accepts major card types and digital wallets, keeping security tight with encryption and PCI DSS compliance. The system protects payment data during in-store transactions using tamper-proof hardware and fraud monitoring.
Accepted Card Types and Digital Wallets
PayPal Point of Sale takes all major credit and debit cards, including Visa, Mastercard, and Europay. It’s EMV-approved, so it handles chip cards to industry standards.
Digital wallets are accepted in-store. The card reader works with contactless payment methods, so customers just tap their cards or devices. This covers payment options stored in phones and wearables.
The system handles both chip-and-PIN and contactless payments. Manual card entry is available if needed, but those transactions aren’t eligible for PayPal’s transaction protection programme.
Secure Transactions and Data Protection
PayPal Point of Sale meets the Payment Card Industry Data Security Standard (PCI DSS). The card reader follows PCI PTS 4.1, which is the highest level for hardware and software security in the industry.
The device comes with tamper-proof features and destroys itself if someone tries to mess with it. Credit card data gets encrypted right away using HSM cryptographic servers.
The system never stores customer card details on the readers or the PayPal POS app. This setup lowers the risk of data breaches, which is a relief for most business owners.
PayPal actively watches every transaction around the clock with advanced fraud detection. Every bit of traffic is logged and checked for anything odd or suspicious.
The Financial Conduct Authority (FCA) keeps PayPal UK Ltd in check as an electronic money institution. That extra layer of regulation gives a bit more peace of mind when it comes to secure transactions.
Managing Sales, Inventory, and Growth
Real-time stock tracking with barcode scanning, low-stock alerts, QR code discounts, gift card issuance, and multi-location inventory visible from one dashboard.
PayPal Point of Sale brings together tools for tracking stock, creating offers, and reviewing sales data. These features help with daily operations and make it easier for businesses to grow.
Inventory Management Tools
The system checks stock levels in real time, so you can always see what’s available and what needs restocking. Users add products with prices, descriptions, and images, making it straightforward to keep things organised.
The software sends alerts when items run low, which helps avoid running out of best-sellers. Barcode scanning comes built-in for faster product lookup at checkout.
Businesses can sort their product library into categories, so finding items is quick. The platform syncs inventory data across all devices instantly, whether you’re on a tablet, phone, or card reader.
If you run more than one location, the system manages inventory separately for each shop but keeps everything visible from one place. Handy if you need to move stock between stores or see how each site is doing.
Applying Discounts and Loyalty Features
PayPal Point of Sale has tools for managing discounts right in the app. Staff can set up percentage or fixed-amount discounts for single items or whole sales, and even run special prices for set periods.
Gift cards are easy to issue and redeem through the platform, so you can build simple loyalty programmes. The customer database keeps track of purchase history and contact details for targeted marketing, though it’s fair to say some competitors offer more advanced loyalty options.
The discount tools work during checkout, so staff can add promotions on the spot without any fuss.
Sales Activity Monitoring
Reporting features break down daily transactions and show sales trends. You can spot which products fly off the shelves, see when your busiest times are, and keep an eye on revenue patterns.
Sales reports give details by product, staff member, and time period. You can get this info in the app or on the web dashboard, with data updating live as sales happen.
The system tracks in-person and online sales if you link it to your e-commerce shop. Employee tracking shows individual sales numbers, so managers can see who’s performing and who might need extra training.
Note that a reliable internet connection is essential, as the system requires Wi-Fi or mobile data to process transactions.
Account Management and Funding
New PayPal Business accounts receive funds in minutes, while legacy PayPal POS accounts settle in 1–2 business days, with cash advances available for eligible merchants.
PayPal Point of Sale links straight to your PayPal Business account, giving quick access to sales funds. It also connects to financial services that can help with cash flow when needed.
Business Account Integration
New users set up a PayPal Business account during sign-up, which becomes the main hub for all POS transactions and funds.
If you already use PayPal POS, you just use your existing login details. Switching to PayPal Point of Sale doesn’t change how you get into your account or manage settings.
Your business account pulls everything together – sales data, inventory, and payment tracking. Merchants can log in through the usual PayPal site or use my.zettle.com for POS features. You can also connect accounting apps in the Integrations section, which saves time on bookkeeping.
Fast Access to Funds
Payment processing times depend on your account type. If you’re a new PayPal Business user, funds usually show up in your PayPal balance within minutes after a sale.
Legacy PayPal POS account holders tend to wait a bit longer, with funds arriving in about one to two business days.
Fast access to funds helps keep cash flow steady. You can transfer money from your PayPal balance to your bank or use it for other business expenses right from PayPal.
Flexible Funding and Cash Advances
PayPal has financial services beyond just payments. Eligible businesses can get flexible funding options for growth or day-to-day needs.
Cash advances are available based on your sales history and account activity. These can help with buying stock, handling seasonal ups and downs, or covering unexpected costs without slowing down your business.
For more on this topic, see our guides to best merchant accounts, credit card machines, and card machine fees.
Our Verdict
PayPal POS (formerly Zettle) charges 1.75% per tap — no monthly fees, no contract. Card reader from £29, terminal £149. Funds arrive in minutes. We rate it 7.8/10.
