Zettle Reader 2 review
Zettle Reader 2 is the cheapest UK card reader to start taking card payments in 2026, on hardware cost. £29 + VAT for your first reader as a new business user and £69 + VAT for each extra reader, 1.75% per transaction, no contract, no monthly fee. Pairs with a phone or tablet over Bluetooth rather than running standalone. Best fit for sub-£8k monthly volume and existing PayPal merchants; settlement is slower than Dojo or SumUp and the rate is uncompetitive above £8k monthly.
At a glance
- Manufacturer
- PayPal Zettle
- Acquirer
- PayPal Zettle
- Form factor
- Compact card reader (pairs with phone or tablet)
- Contract
- No contract
How Zettle Reader 2 works
Zettle Reader 2 is a card terminal supplied through PayPal Zettle. Form factor: Compact card reader (pairs with phone or tablet). Connectivity: Bluetooth (paired with mobile device).
Cards are read at the device, the transaction is authorised through PayPal Zettle, and funds settle to your nominated UK bank account on that provider's schedule. The pricing table below shows the rate and contract.
PayPal Zettle processes the card payments, but you are still the merchant. The contract sets your PCI DSS obligations and your liability for chargebacks, so read those terms before you sign. For the FCA chain, Companies House identifier and contract terms behind this acquirer, see the PayPal Zettle processor profile.
Pricing breakdown
| Cost component | Amount |
|---|---|
| Setup / hardware cost | £29 first reader, £69 each extra (ex VAT) |
| Transaction rate | 1.75% per transaction |
| Monthly fee | No standing monthly fee |
| Contract length | No contract |
| Exit fee | None (no fixed contract) |
Verify pricing directly with PayPal Zettle before signing. UK card-acceptance pricing varies by sector, ticket size and processing volume. Source: Zettle card reader page, checked 2026-09-25. Full published price table: PayPal Zettle fees.
Hardware and software
- Form factor: Compact card reader (pairs with phone or tablet).
- Connectivity: Bluetooth (paired with mobile device).
- Card schemes accepted depend on your acquirer.
- Contactless: cards, Apple Pay and Google Pay, up to the contactless limit.
- Receipts: digital receipts by SMS or email, with no built-in printer.
- POS integrations: ask the acquirer for its current list.
Contactless payments
Status: Accepts contactless cards, Apple Pay and Google Pay
This terminal has its own contactless reader. That is different from Tap to Pay on iPhone, which turns a phone into the reader: see our Tap to Pay on iPhone review for that product. Read the Tap to Pay on iPhone review
Settlement and funds
Funds typically arrive in 1 to 2 business days from PayPal Zettle to your nominated bank account.
Pros and cons
Pros
- + Cheapest entry point for hardware (£29).
- + PayPal ecosystem integration.
- + No contract, no monthly fee.
Cons
- − 1.75% rate uncompetitive above £8k monthly.
- − Not standalone, needs a paired device.
- − Settlement times slower than Dojo or SumUp.
Best for and avoid if
Best for
- · Existing PayPal merchants
- · Pop-up retailers, market traders
- · Sub-£8k monthly volume
Avoid if
- · Standalone use
- · High volume
FAQs
Does Zettle Reader 2 require a contract?
No. Zettle Reader 2 is offered with no fixed contract (no contract). You pay per transaction and can stop using the service at any time.
What does Zettle Reader 2 cost in year 1?
Upfront hardware: £29 first reader, £69 each extra (ex VAT). Transaction rate: 1.75% per transaction. Contract: No contract. First-year cost depends on your card volume; MerchantHQ's quote tool will model the effective cost against alternatives.
Can I integrate Zettle Reader 2 with my till or POS software?
Integration depends on the acquirer and the till software. Ask PayPal Zettle for its current list of supported integrations, and confirm your till software is on it before you buy hardware.
How fast does Zettle Reader 2 settle funds?
Funds typically arrive in 1 to 2 business days from PayPal Zettle to your nominated bank account.
Can I cancel Zettle Reader 2 early?
Yes. As Zettle Reader 2 runs without a fixed contract, you can stop processing at any time. Check the acquirer's account-closure policy.
Compare Zettle Reader 2
How Zettle Reader 2 stacks up against the closest UK alternatives. Pick a head-to-head matchup or jump to the full alternatives shortlist.
Zettle Reader 2 vs SumUp Solo
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Zettle Reader 2 vs Tap to Pay on iPhone (no terminal)
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All alternatives to Zettle Reader 2
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Official site: PayPal Zettle
MerchantHQ is owned and operated by Best Business Loans Ltd, directed by Oliver Mackman. Last updated:
Payments review: Derren Powell, payments and fintech specialist, formerly Vice President, Business Development (Merchants) at Mastercard. Independent reviewer; the MerchantHQ editorial team retains control of the final content.