In today’s digital economy, reliable and efficient payment processing systems are no longer an optional add-on for businesses but rather a critical infrastructure. The choices are wide-ranging and may seem daunting, but two leading providers stand out for a special focus: Zettle vs PayPal.
In the UK, where the competition in payment processing is fierce, selecting the most suitable provider can significantly affect a company’s bottom line and customer satisfaction.
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This article will provide an in-depth comparison of these two providers, analysing key facets such as transaction fees, ease of use, customer service, and additional features. By the end of the read, you should have a clear understanding of which provider could be the right fit for your business.
Zettle vs PayPal
| Features/Fees | Zettle | PayPal |
|---|---|---|
| Transaction Fees | Flat 1.75% per transaction | 2.9% + 30p per transaction (online) Varies from 2.75% to 1% per transaction for PayPal Here (in-person) depending on monthly sales volume |
| Sign-up process | Straightforward | More complex |
| Customer Service | Phone and email (9 am – 5 pm weekdays) | Phone, email, Help Centre (24/7) |
| Additional Features | Invoicing, inventory management, employee accounts, eCommerce platform integration | PayPal Credit, recurring billing, multi-currency support, extensive online payment features |
| eCommerce Compatibility | Shopify, WooCommerce, BigCommerce | Varies depending on the platform |
| Ease of use | Simplistic and user-friendly | User-friendly, but extensive services can be overwhelming |
| International Payments | Depends on the eCommerce platform used | Available across 200+ countries and regions |
| User Experience | Known for its simplicity and intuitiveness | Globally recognised brand, instilling customer confidence |
This table summarises the main features and fees of Zettle vs PayPal, providing an at-a-glance comparison to aid in your decision-making process. However, as discussed in the article, the choice between these two providers depends largely on your business’s specific requirements and operational demands.
Transaction fees
Zettle
Zettle, previously known as iZettle, is now owned by PayPal, but they operate independently and have different pricing structures.
Zettle charges a flat fee of 1.75% per transaction for card payments. This rate is the same irrespective of the card type, whether it’s a credit card or debit card, from the UK or abroad.
This simple pricing strategy makes it easier for businesses to forecast their costs.
PayPal
PayPal, on the other hand, has a more complex pricing structure. For online transactions, fees start at 2.9% plus a fixed fee of 30p per transaction.
However, if you’re processing a high volume of transactions, the percentage can decrease to 1.9%.
For in-person card transactions using PayPal Here, the fee can range from 2.75% to as low as 1% per transaction, depending on the monthly sales volume.
In terms of transaction fees, Zettle’s flat-rate approach could be more beneficial for small businesses with variable sales volumes, while larger businesses or those with consistent high sales volumes may find PayPal’s volume discounts appealing.
Ease of use
Zettle
Zettle’s user experience is often praised for its simplicity and intuitiveness. The sign-up process is straightforward, and their app and card reader are easy to use, with features like product libraries and the ability to send electronic receipts.
PayPal
PayPal is renowned for its user-friendly interface, both online and on mobile devices. It’s a globally recognised brand with a broad user base, which may instil more confidence in customers.
However, setting up a business account can be a little more complex than with Zettle, and some users find PayPal’s extensive range of services overwhelming.
In terms of ease of use, both platforms score highly, but Zettle might have the edge for businesses that prefer simplicity and speed of operation.
Customer service
Zettle
Zettle offers phone and email support, but it is not available 24/7. The support is available from 9 am to 5 pm on weekdays, which may not be ideal for businesses that operate outside of these hours or on weekends.
PayPal
PayPal provides customer service via phone and email, along with a robust online Help Centre. The customer service is available 24/7, which is beneficial for businesses that need around-the-clock support.
When it comes to customer service, PayPal’s 24/7 availability gives it a significant advantage over Zettle.
Additional features
Zettle
Zettle offers several additional features such as invoicing, inventory management, and employee accounts, which allows for the tracking of individual sales performance.
Another standout feature of Zettle is its compatibility with a range of eCommerce platforms, including Shopify, WooCommerce, and BigCommerce. This makes it an excellent choice for businesses that operate both online and offline.
PayPal
PayPal provides a broad range of additional features, including PayPal Credit, recurring billing, and multi-currency support.
However, PayPal shines with its online payment features, offering businesses the ability to accept payments from anywhere in the world.
This makes PayPal particularly attractive for businesses with a strong online presence or those looking to expand internationally.
Conclusion – Zettle vs PayPal
The decision between Zettle and PayPal as a payment processing provider will depend on your business’s specific needs and operations.
Zettle stands out for its simplicity, flat-rate transaction fees, and compatibility with various eCommerce platforms, making it a great choice for small to medium businesses with both online and offline sales.
On the other hand, PayPal’s flexible pricing structure, extensive feature set, and superior customer service make it a strong contender for larger businesses or those with a significant online presence.
Remember, payment processing is a critical part of your business, so it’s essential to choose a provider that aligns with your business model and goals.
The right payment processing provider can not only streamline your operations but also enhance customer satisfaction and your bottom line.
FAQ – Zettle vs PayPal
Zettle is particularly suitable for small to medium-sized businesses that operate both online and offline, thanks to its eCommerce platform integration and flat-rate transaction fees.
PayPal can be beneficial for businesses of all sizes, especially those with significant online sales or international transactions due to its extensive online payment features and multi-currency support.
No, there are no setup costs for either Zettle or PayPal. However, purchasing a card reader from Zettle incurs a one-time cost.
Zettle itself does not directly support international payments. However, its compatibility with various eCommerce platforms that do support international transactions enables this functionality.
Yes, PayPal charges a fee for chargebacks. At the time of writing, the fee is £14 per instance.
Zettle accepts a wide range of credit and debit cards, including Visa, MasterCard, and American Express.
Yes, both Zettle and PayPal support contactless payments through their card readers.
Yes, Zettle does offer invoicing, making it easier for businesses to manage their accounts.
Yes, PayPal is widely compatible with many eCommerce platforms and can easily be integrated into your website to accept payments.
No, Zettle’s customer service is available only on weekdays, from 9 am to 5 pm.
Yes, PayPal has a mobile app that allows you to manage transactions, send invoices, and more.
Zettle can be integrated with some POS systems, but compatibility should be checked on a case-by-case basis.
Yes, PayPal provides business loans in the form of PayPal Working Capital, subject to eligibility and approval.
PayPal Here fees range from 2.75% to 1% per transaction, depending on the monthly sales volume.
No, Zettle charges a flat fee of 1.75% per transaction, irrespective of the transaction volume.
No, PayPal requires you to have separate accounts for each business you own.
Funds are typically transferred to your bank account within 1-2 business days with Zettle.
No, Zettle does not support PayPal as a payment method.
Both Zettle and PayPal adhere to high security standards. They comply with the Payment Card Industry Data Security Standard (PCI DSS), ensuring secure transactions.
Yes, both Zettle and PayPal allow the acceptance of mobile payments through their card readers.