Compare contactless payment systems.
Verified 2026 UK pricing
Contactless payments now account for 76% of UK debit card transactions and 67% of credit card transactions (UK Finance, December 2025). In 2025, UK consumers and businesses made 19.2 billion contactless payments worth £311 billion.
The contactless payment systems market in the UK has matured – every major contactless payment systems provider on this list is reliable. The question is no longer whether to adopt contactless payment systems. It is which contactless payment system fits your business type, transaction volume, and cost structure.
This guide covers the 6 best contactless payment systems for UK businesses in 2026 – verified pricing, honest trade-offs, and a direct comparison across fees, hardware, and use cases.
TL;DR
The best contactless payment systems for UK businesses in 2026: Square (best for simplicity, £19 reader, 1.75%), Zettle by PayPal (best for brand trust, £29 reader, 1.75%), SumUp Air (lowest fee, £39 reader, 1.69%), Shopify POS Go (best for omnichannel, £299 device), Revolut Reader (lowest per-transaction rate at 0.8% + £0.02), and Finexer Pay by Bank (no card fees via Open Banking). On 19 March 2026, the FCA removed the mandatory £100 contactless limit – most major UK banks currently maintain the £100 cap while they assess customer demand.
Key Takeaways
What is the cheapest contactless payment system in the UK?
SumUp Air charges 1.69% per transaction with no monthly fee – the lowest flat rate among the six. For lowest per-transaction cost at volume, Revolut Reader charges 0.8% + £0.02 up to £2,000 monthly.
What is the contactless payment limit in the UK in 2026?
The FCA removed the mandatory £100 cap from 19 March 2026. Most major UK banks have maintained the £100 limit for now. The cumulative PIN trigger remains at £300.
Do I need a card machine for contactless payments?
No. Square, Zettle, and SumUp support Tap to Pay on compatible phones – no hardware needed. Open Banking Pay by Bank links and QR codes also accept payments without a reader.
Which contactless payment system has no monthly fee?
Square, SumUp, Zettle, and Revolut all charge per transaction only – no monthly subscription. You pay when you take a payment.
The 6 Best Contactless Payment Systems for UK Businesses in 2026
How do these systems compare at a glance?
| System | Hardware cost | Transaction fee | Monthly fee | Best for |
|---|---|---|---|---|
| Square | £19 + VAT | 1.75% | None | Simplicity, portability |
| Finexer Pay by Bank | None | Usage-based | None | Zero card fees via Open Banking |
| Zettle by PayPal | £29 | 1.75% | None | Brand trust, small retailers |
| SumUp Air | £39 | 1.69% | None | Lowest flat fee |
| Shopify POS Go | £299 + VAT | From 1.6% | Shopify plan required | Omnichannel retail |
| Revolut Reader | £49 | 0.8% + £0.02 | None | Lowest per-transaction rate |
Pricing correct at time of writing - verify with each provider before purchasing.1. Square: Best for Simplicity and Fast Setup
Who is Square best suited to?
Square is the most widely adopted contactless payment system for UK businesses that want low upfront costs, no contracts, and a reader that works out of the box.
The £19 reader pairs via Bluetooth to any iOS or Android device. No merchant account needed. No monthly fee. The flat 1.75% transaction rate applies to all in-person card and contactless payments including Apple Pay and Google Pay.
Key features:
- NFC tap, chip and PIN, Apple Pay, Google Pay
- Free Square POS app with sales tracking and inventory
- Next-day payouts to UK bank account (instant available for a fee)
- PCI-level encryption and fraud protection included
The trade-off: The 1.75% flat rate becomes expensive at high volume. For a business taking £20,000 per month, that is £350 in fees. SumUp or Revolut will cost less at scale.
Best for: Pop-up stalls using a portable contactless payment system – market traders, mobile cafés, salons, and any business that needs to accept contactless payments quickly and cheaply.
For businesses exploring how Open Banking compares to card-based EPOS payment systems in terms of transaction cost, the difference becomes significant at volume – card fees compound as turnover grows.
2. Finexer Pay by Bank: Open Banking Contactless Alternative
How does Open Banking compete with card-based contactless payment systems?
Finexer isn’t a card reader. It’s an Open Banking payment infrastructure that allows UK businesses to accept payments via Pay by Bank – using QR codes, payment links, or direct integration – with no card processing fees.
The customer pays directly from their bank account through their mobile banking app. No card network involved. No interchange fee. No chargeback risk.
| Feature | Finexer Pay by Bank | Card-Based Contactless |
|---|---|---|
| Transaction fee | Usage-based – no interchange or scheme charge | 1.69% – 1.75% per transaction |
| Chargebacks | None – payments are bank-authorised and final | Chargeback disputes possible |
| Settlement | Near-instant via Faster Payments | Next-day or same-day (fee applies) |
| Hardware required | No – QR code or payment link | Card reader (£19 – £299) |
| UK bank coverage | Almost all major UK banks | All card-issuing banks |
| Best for | High-volume EPOS, online checkout, bill payment | Physical retail tap-to-pay |
Pay by Bank works best as a complement to or replacement for card readers where transaction volumes make card fees meaningful. A business taking £50,000/month in card payments pays approximately £875 in transaction fees at 1.75%. Open Banking removes that card fee layer.
For EPOS platforms and retailers evaluating how Pay by Bank sits alongside card contactless at point of sale, the infrastructure is designed to work in parallel – not as a forced replacement.
- FCA-authorised (FRN 925695)
- Usage-based pricing, no setup fees, deployment measured in weeks
“Most retailers ask me about card reader fees. The right answer depends on volume. Under £5,000 per month, any flat-rate card reader is fine. Above £15,000 per month, the fee difference between card-based contactless payment systems and Open Banking Pay by Bank compounds into a meaningful cost saving.” – Ravi, Finexer
3. Zettle by PayPal: Best for Brand Recognition
Is Zettle worth it for small UK retailers?
Zettle offers a contactless payment system at the same 1.75% transaction fee as Square but adds PayPal’s brand recognition at checkout – which matters for consumer trust, particularly in independent retail.
The £29 reader accepts NFC contactless, chip and PIN, Apple Pay, Google Pay, and PayPal QR codes. Tap to Pay on compatible Android devices removes the need for hardware entirely.
Key features:
- Flat 1.75% on all in-person contactless payments
- Tap to Pay on Android – no reader needed
- Integrated with Shopify, BigCommerce, and Xero
- Daily payouts to bank or PayPal balance
The trade-off: Requires internet – no offline mode. PayPal account freezes, while rare, have caused operational disruption for some merchants. Independent reviews on Reddit and MoneySavingExpert reflect this.
Best for: Small retailers needing a trusted contactless payment system – coffee kiosks, craft boutiques, and market traders where PayPal name recognition builds shopper confidence.
4. SumUp Air: Best Low-Fee Contactless Option
Does SumUp offer the best value for mobile traders?
At 1.69% per transaction, SumUp Air has the lowest flat rate among contactless payment systems reviewed – and among all major UK card readers – and no monthly fee, no contracts.
The £39 reader handles up to 500 transactions per charge, making it practical for full-day market trading or outdoor events without a power source nearby.
Key features:
- 1.69% flat fee – lowest of the six options reviewed
- Up to 500 transactions per charge
- Accepts Visa, Mastercard, Amex, Apple Pay, Google Pay
- Free SumUp app with digital receipts and basic sales reporting
The trade-off: The POS functionality is basic compared with Square or Shopify. If you need inventory management or advanced reporting, SumUp works better as a reader paired with separate accounting software.
Best for: Street food vendors, mobile beauty professionals, personal trainers, and market traders who prioritise fee savings over POS features.
For small businesses evaluating payment costs across different provider types, alternative payment methods comparison covers how Open Banking payment links compare to card reader fees at different transaction volumes.
5. Shopify POS Go: Best for Omnichannel Retail
When does Shopify POS Go make financial sense?
Shopify POS Go is the right contactless payment system when you already operate a Shopify online store and want unified inventory and sales data across online and in-store channels.
The £299 + VAT device is a standalone handheld with built-in barcode scanner, NFC reader, and optional LTE connectivity. Staff can complete sales anywhere on the shop floor without returning to a fixed till.
Key features:
- Built-in NFC tap, barcode scanner, and card reader in one device
- Real-time inventory sync between online and physical store
- Works with Shopify POS Pro for staff management, returns, and analytics
- Wi-Fi and optional LTE – no dependence on a fixed network point
The trade-off: The hardware cost is the highest of the six at £299 + VAT. Requires a Shopify subscription (from £25/month on Basic plan). Only works natively with Shopify Payments – other payment processors add a transaction fee.
Best for: Lifestyle boutiques, apparel retailers, and pop-up brand activations with existing Shopify stores.
6. Revolut Reader: Best Per-Transaction Rate
Who benefits most from Revolut Reader’s 0.8% fee?
The Revolut Reader contactless payment system charges 0.8% + £0.02 per transaction for Revolut Business customers on transactions up to £2,000 per month. Above that, the rate moves to 1.2% + £0.02. Both are significantly below the 1.75% flat rate charged by Square and Zettle.
The £49 reader connects via Bluetooth to the Revolut Business app. Payouts settle same-day to the Revolut Business account.
Key features:
- 0.8% + £0.02 per transaction (up to £2,000/month) – lowest card-present rate reviewed
- Same-day settlement to Revolut Business account
- Multi-currency: accept and hold payments in 28+ currencies
- No monthly fee – pay per transaction only
The trade-off: Requires a Revolut Business account. If you bank elsewhere, the same-day payout advantage disappears. The reader itself costs £49 – higher upfront than Square or Zettle.
Best for: Established businesses with consistent monthly card volume who already use Revolut Business, and international traders who benefit from multi-currency settlement.
For businesses that process both domestic and international payments and are evaluating best merchant payment services across card and bank payment rails, the fee comparison shifts significantly depending on transaction mix.
How to Choose the Right Contactless Payment System
What should UK businesses prioritise when choosing?
The right contactless payment system solution depends on four key variables – transaction volume, hardware budget, existing ecosystem, and payout speed. Getting these right matters more than brand preference.
Transaction volume. At low volume (under £5,000/month), any flat-rate system works – Square or SumUp. At higher volume, Revolut’s 0.8% rate or Open Banking’s zero interchange model saves meaningfully.
Hardware budget. Square at £19 and Zettle at £29 are the lowest entry points for physical readers. Shopify POS Go at £299 is a business investment, not a starter tool.
Existing ecosystem. If you already use Shopify, Revolut Business, or PayPal – the matching system integrates better and simplifies reconciliation.
Payout speed. Same-day payouts matter for cash-flow-sensitive businesses. Revolut settles same-day. Square and SumUp are next-day standards. Open Banking Pay by Bank settles near-instantly via Faster Payments.
Businesses comparing best payment gateways beyond card readers will find Open Banking and hybrid infrastructure options sitting alongside traditional gateway pricing.
What I Feel
The contactless payment systems market in the UK is mature enough that every provider on this list is competent. The 2026 question is not which contactless payment system works – they all work. It is which fee structure makes sense for your volume.
The FCA’s decision to remove the mandatory £100 contactless limit in March 2026 is interesting context. Most banks kept the cap. That tells you something about where consumer behaviour and fraud risk sit right now – the limit change creates flexibility for future use cases, not an immediate behaviour shift.
The more meaningful change for UK retailers is the growth of Open Banking as a payment rail. 37.46 million Open Banking payments were made in March 2026 alone (Open Banking Limited ). Pay by Bank is moving from a fintech experiment to mainstream checkout options. Card-based contactless payment systems remain essential for tap-to-pay at the physical point of sale. But businesses with high transaction volumes should model the fee comparison honestly before defaulting to card.
“The businesses that get contactless payment systems right in 2026 are the ones that separate the hardware question from the fee question. Pick the reader that fits your counter and your customer. Then separately, decide whether card processing fees are a cost you want to carry at your current volume.” – Ravi, Finexer
Can I take contactless payments without a monthly fee?
Yes. Square, SumUp, Zettle, and Revolut all charge per transaction only – no monthly subscription. You pay only when you process a payment. Finexer Pay by Bank is also usage-based with no monthly minimum.
Are contactless payments safe for UK businesses?
Yes. All systems use PCI-compliant encryption and tokenisation. NFC requires card proximity under 4cm. UK contactless fraud rates are significantly lower than online card fraud (UK Finance). From March 2026, banks set their own limits – most have kept £100 with a £300 cumulative PIN trigger.
Can I take contactless payments on my phone without a reader?
Yes. Square, Zettle, and SumUp all support Tap to Pay on compatible iPhone and Android – no reader needed. Download the app, enable Tap to Pay, accept contactless cards and mobile wallets. Transaction fees are the same as with a physical reader.
Ready to Simplify Payments and Cut Card Fees? Finexer offers a faster, more affordable contactless payment system
About the Author
Ravi Ranjan
Ravi Ranjan is Co founder & CEO of Finexer