Our Take
The bottom line:
PayPal Zettle delivers the essentials at a relatively low cost with a small commitment. But consider other options if you want features like customer loyalty and email marketing programs. Although Zettle can expand through hardware, it doesn’t offer plan upgrades or those types of add-ons.
PayPal Zettle
Payment processing fees
2.29% + 9¢ in-person; 3.49% + 9¢ keyed.
Monthly fee
$0.00
Pros & Cons
Pros
- Solid core features.
- No monthly fees.
- No long-term commitment.
- Low initial costs.
- Easy to use.
Cons
- No add-on features available.
- Limited integrations.
- Funds are transferred to your PayPal account and not your bank account.
Full Review
PayPal Zettle is a point-of-sale system that lets businesses take payments, track inventory and sales and receive reports. It replaced PayPal Here in 2021.
Zettle may be a good choice if you’re looking for an entry-level point-of-sale (POS) system or a PayPal mobile card reader. The PayPal Zettle POS app is free and can be downloaded from the App Store or Google Play. After downloading the Zettle app to your device, you can create an account and order a card reader. The card reader lets you accept credit and debit card transactions and contactless payments.
Your mobile device acts as a POS to take payments, track sales, generate reports, manage inventory and monitor staff productivity. You’ll also have the option to collect customer email addresses and integrate with accounting and e-commerce apps.
PayPal Zettle is best for businesses that:
- Prioritize payment processing over full-service POS. PayPal Zettle makes it easy to get up and running quickly to accept payments, but it lacks POS tools and features beyond the basics.
- Already have a PayPal account or don’t mind opening one. A PayPal account is required to use Zettle. Funds are typically transferred to your PayPal account within one business day, and you have the option to set up deposits to your bank account.
- Want flexibility in payment and transaction types. With PayPal Zettle, you can accept payment by credit and debit cards, digital wallets and QR codes. This includes Mastercard, Visa, American Express, Discover, Apple Pay, Google Pay, Samsung Pay, PayPal, Venmo and others. In addition to in-person transactions, you can accept payments over the phone, create invoices and send payment links to customers.
Deciding factors
Payment processing model | Flat-rate. |
Payment processing fees |
|
Monthly fee | $0. |
Hardware cost |
|
Contract length | No long-term contracts. |
Customer support | Phone support is offered from 8 a.m. to 8 p.m. Central time every day. Online chat with a bot is available along with the option to message an agent. A resolution center and a community forum are also available. |
Where PayPal Zettle stands out
Solid basic features
PayPal Zettle has a robust payment system that can handle card, digital wallet and QR code transactions, plus allow you to manually enter payments. You can add discounts, enter refunds and issue receipts. Features to help you manage your inventory, monitor top-selling products and track the productivity of your staff are also included.
Sales tracking and reports
The app allows you to track sales and receive automatic reports. In the reports section of the app, you’ll find an overview of the prior day’s sales numbers. More detailed reporting is available in your Zettle account, including a summary of sales, a breakdown of payment types and fees, top-selling products, gift cards sold and staff performance. These reports can be exported to PDF, Excel or a raw data format.
Inventory management
The app allows you to build a product library. You can import a product list from a spreadsheet, group the products by category, and then add photos, descriptions and bar codes. New products can be added, too. Inventory can be managed from the app or your online account, and you’ll be notified when it’s time to restock products.
Integrations
Zettle POS integrates with QuickBooks Online and with Shopify, BigCommerce and WooCommerce. After setting up the connection, you can automatically import data into QuickBooks Online every night. You can also import products from e-commerce websites to your Zettle product library, and inventory changes sync between platforms.
Low initial costs
Getting started with Zettle is relatively quick, easy and inexpensive. Because there isn’t a long-term commitment, you can try the system at a minimal cost. The fees for payment processing are similar to the fees for Square POS.
Where PayPal Zettle falls short
No add-on features
Although Zettle provides the core features of a POS system, it limits users to a single plan. PayPal competitors offer multiple plans or give you the opportunity to purchase add-on features such as customer loyalty programs, email marketing or advanced reports. You can expand your Zettle system by buying more hardware, but not by buying additional features.
Limited integrations
Zettle offers a limited number of app integrations. Some competitors offer integrations for a larger number and variety of apps, including those for accounting, e-commerce, customer engagement, scheduling and employee management.
Alternatives to PayPal Zettle
Square
Monthly fee:
- $0 for Square POS, Restaurant, Retail and Appointments Free plans.
- $29 for Square Appointments Plus plan.
- $60 for Square Restaurant and Retail Plus plans.
- $69 for Square Appointments Premium plan.
Payment processing fees:
- 2.6% plus 10 cents for in-person transactions.
- 2.9% plus 30 cents for online transactions.
- 3.5% plus 15 cents for manually keyed transactions.
- 3.3% plus 30 cents for invoices.
Hardware:
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $49 and up for Square Reader contactless and chip card reader.
- $149 for Square Stand iPad POS or Square Stand Mount (iPad not included).
- $299 for Square Terminal mobile card reader with built-in printer.
- $799 for Square Register two-screen system.
Why we like it: If you want more bang for your buck, Square may be a better option for you. Square’s payment processing rates are comparable to PayPal’s, plus you’ll get access to built-in inventory management. Add-ons such as team management, loyalty programs and email marketing are also available. Read our full Square POS review.
Shopify
Monthly fee:
To use Shopify POS, you also must have a Shopify plan for e-commerce:
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- Custom pricing for Shopify Plus.
Once you have a Shopify plan for e-commerce, add either:
- $15 for Shopify POS Lite.
- $79 per location for Shopify POS Pro when billed annually (or $89 when paid monthly).
Payment processing fees:
- 2.4%, 2.6% or 2.9% plus 30 cents for online payments for Advanced, Shopify or Basic plan, respectively.
- 2.4%, 2.5% or 2.7% for in-person payments for Advanced, Shopify or Basic plan, respectively.
Hardware:
- $49 for Tap & Chip card reader.
- $219 for Tap & Chip countertop kit (iPad not included).
- $299 for Shopify POS Go mobile device.
- $349 for Shopify POS terminal.
- $459 and up for POS terminal countertop kits.
Why we like it: Shopify POS may be more expensive than PayPal — it charges a monthly fee for e-commerce plans, which are required to use Shopify Payments, in addition to the transaction fees. But if you’re looking for a more advanced POS that can unify your in-store and online transactions and let you market to customers and manage inventory, Shopify may be a fit. Read our full Shopify POS review.
Compare POS providers
To compare POS options, check out NerdWallet’s list of point-of-sale systems that are best for small-business owners. Our recommendations are based on the provider’s pricing and transparency, software and hardware options, system functionality, customer support, software integrations and contract requirements.
Methodology
NerdWallet’s point-of-sale systems provider ratings reward companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria. Ratings are based on weighted averages of scores in several categories, including cost, system capabilities, contract requirements, customer service and integrations and add-ons. Learn more about how we rate point-of-sale (POS) systems providers.
These ratings are a guide, but services, hardware and pricing can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Frequently Asked Questions
There is no monthly fee to use the PayPal Zettle software and no long-term contract.
PayPal bought Zettle in 2018 and replaced its previous simple POS solution, PayPal Here, with the new PayPal Zettle POS.
Zettle charges a flat-rate transaction fee of 2.29% plus 9 cents for in-person transactions and 3.49% plus 9 cents for manual entry transactions.