Is Zettle Cheaper Than PayPal?

PayPal has long been considered the top choice for a number of online merchants and payments, and this is a payment option that many people are familiar with.

However, there are other options available to you as an e-commerce merchant, and one such alternative that has recently hit the market is Zettle. But is Zettle cheaper than PayPal, and what are the differences between the two? We took a closer look to put together all you need to know.

What Is PayPal?

PayPal is a global electronic payment service provider that allows users to send money to each other through their accounts. It was founded in 1998, and its headquarters are located in San Jose, California.

The company offers services like credit card processing, bank account transfers, bill pay, and more.

What Are Its Features?

The main features of PayPal include:

 

• • Instant Transfer : You can make instant transfers from your PayPal balance to another person’s PayPal balance or bank account. This feature is ideal if you want to send someone money quickly and securely, making it popular for businesses and individuals alike.

 

• • Billing Information : If you have a business account, you will be able to see your billing details on your dashboard. These include your name, address, phone number, email address, and more. You can also set up automatic invoicing, so customers receive their bills automatically.

 

• • Credit Cards : If you accept credit cards, you can process them using PayPal. You can choose whether to charge a fee for this service, but most companies do not require any fees.

 

• • Mobile Apps : You can use PayPal mobile apps to manage your transactions from anywhere, and users can also transfer funds directly from your mobile device to another person’s mobile device.

How Does It Work?

To use PayPal, you must first create an account by filling out a simple form. Once you have created an account, you can start accepting payments. To begin, you will need to add a seller profile.

After adding your seller profile, you can then link your bank account or credit card to your account, and this allows you to start receiving payments. Payments will appear on your seller profile under “Pending Payment”. When they arrive, you will get a notification via email.

When you receive a payment, you can either approve it immediately or hold it until you decide how much to deduct from it. If you hold the payment, you can release it at any time.

How Much Does It Cost?

In most cases, there are no monthly fees associated with PayPal, but there are some fees that apply to specific transactions, meaning that if buyers pay with a credit card, or you are operating as a business, you can face a fee that is a percentage of the final sale or payment price.

These can range from 0.2% to 2% depending on the transaction, and some users have complained that fees can be high compared to other online sites, particularly for international transactions, and costs can quickly start to add up for businesses.

What Is Zettle?

Zettle, or PayPal Zettle, is a mobile point of sale (POS) system for small businesses. It is designed to replace PayPal Here and was introduced in July 2021 in the US. Zettle has been available since 2014 in Canada, Australia, New Zealand, Ireland, and the UK.

It works similarly to PayPal, allowing merchants to accept payments from customers and send money to others. However, unlike PayPal, Zettle also allows merchants to take payments in person, making it a great option for businesses who wish to offer cash-only services.

What Are Its Features?

Zettle offers a number of great features, and these include:

 

• • Allows Payments To Be Taken In Person. Unlike PayPal, which requires people to go through a third-party website to complete purchases, Zettle makes it possible to take payments in person. This is especially useful for businesses like restaurants, bars, and coffee shops where customers may want to make purchases quickly and easily in person, rather than always online.

 

• • Accepts Credit Card And Debit Card Payments. Zettle accepts both debit and credit card payments, which means that it can work with all major banks and credit unions.

 

• • Payments Can Be Made With A Mobile Device. Like PayPal, Zettle lets you accept payments from customers using a smartphone or tablet. This makes it easy for customers to pay without having to visit a physical location.

 

• • Can Read QR Codes. QR codes are commonly used for scanning items such as tickets and loyalty cards. They allow customers to scan them directly from their phones and instantly transfer funds to the merchant’s account, and Zettle stands out from other payment systems by allowing businesses to make the most of this feature.

 

• • Integrates Into The Point Of Sale System. Zettle integrates well with other POS systems, allowing you to manage multiple accounts simultaneously.

How Much Does It Cost?

Zettle charges a fixed transaction fee of 1.75% for card and contactless payments, and this charge applies regardless of the amount being paid or the type of card being used.

There are no monthly fees to pay, however – you will be charged on the transactions that take place on your Zettle system.

Is Zettle Cheaper Than PayPal?

In terms of cost, Zettle emerges as the cheaper option compared to PayPal, and this is particularly true for businesses that take payments in person as well as online.

The best option will ultimately depend on the nature of your business and transactions, and it is worth noting that Zettle offers bonus features that are not available on PayPal, including the ability to take in-person payments, which could just tip it over the line for some businesses.

Final Thoughts

If you’re looking for an alternative to PayPal, then Zettle might be worth considering. While it doesn’t have exactly the same features as its bigger brother, it does provide many of the things that users need most, including the ability to accept payments in person.

As an added bonus, these features are also available for a cheaper cost, allowing your business to maximize profit.

Learn more about other options over at our merchant payment processing hub.