SumUp vs PayPal: which should you choose?
SumUp and PayPal usually aren't solving the same problem. SumUp is a card reader for taking payment in person. PayPal is best known as an online checkout and invoicing tool for payments taken remotely — many small businesses genuinely use both together rather than choosing one.
| Category | SumUp | PayPal |
|---|---|---|
| Primary use case | In-person card payments (needs a reader) | Online checkout, invoicing, remote payment links |
| Typical fee | 1.69% flat (card-present) | 2.9% + £0.30 (online checkout) |
| Monthly fee | £0 (optional Payments Plus £19/mo) | £0 (optional Website Payments Pro £20/mo) |
| Contract | None | None |
| Hardware required | Yes — reader from £25 +VAT | No — works from a browser or invoice link |
| Settlement | By 7am next day, incl. weekends | Instant to PayPal balance* |
| Cash-flow risk | Not typically applicable | PayPal can apply rolling reserves/holds of 21-90 days for perceived risk changes |
| Chargebacks | Standard card scheme dispute process | £14 fee; standard dispute fee £12 |
| In-person card reader option | This is SumUp's core product | Yes — branded Zettle, not "PayPal." See SumUp vs Zettle |
| WMP score |
*PayPal's "instant" settlement refers to funds landing in your PayPal balance, not necessarily your bank account — withdrawing from PayPal to your bank can take longer, and a rolling reserve can delay this further.
Figures checked directly against sumup.com and paypal.com/uk official pricing pages on 30 July 2026. See methodology. We may earn a commission when you sign up through a link on this page — see our Affiliate Disclosure.
SumUp and PayPal together, not instead of each other
Trade shows and markets
Take card payment in person with SumUp's reader, while still offering a PayPal invoice or payment link for a customer who wants to pay later or place a deposit remotely.
Service businesses with deposits
Collect a deposit via a PayPal invoice before the job, then take the balance in person with SumUp on completion — common for trades, photographers and event suppliers.
Selling online and in person
An online store already using PayPal Checkout doesn't need to switch providers for a market stall or pop-up — SumUp's reader bolts on for the in-person side without touching the online setup.
Buyer trust for new customers
PayPal's brand recognition can reduce hesitation from a customer paying online for the first time, in a way a card reader can't help with, since it's only relevant in person.
Overall verdict
Choose SumUp if: you need to take a card payment in person and want the lowest published in-person rate.
Choose PayPal if: you're taking payment online, sending invoices, or want the buyer trust of a recognised checkout brand for remote sales — and don't rule out using both for different parts of the same business.
Frequently asked questions
Is SumUp or PayPal cheaper?
They're usually not solving the same problem. SumUp's 1.69% is for in-person card payments with a reader. PayPal's 2.9%+30p is for online checkout, where PayPal also covers buyer trust and needs no hardware — hence the higher rate.
Do I mean PayPal's card reader, not online PayPal?
If you're after a card-reader comparison specifically, PayPal's in-person product is branded Zettle, not sold as "PayPal" hardware — see our full SumUp vs Zettle comparison.
Comparing online payment gateways instead?
See how PayPal stacks up against Stripe, Adyen, Mollie and more.
Methodology: Figures pulled directly from sumup.com and paypal.com/uk official pricing pages on 30 July 2026. See our Editorial Policy.