Could Square and Zettle by PayPal Be Costing Your SME Business? A Price vs. Cost Analysis

Could Square and Zettle by PayPal Be Costing Your SME Business? A Price vs. Cost Analysis

On the surface, payment solutions like Square and Zettle by PayPal seem highly attractive for small to medium-sized enterprises (SMEs) due to their user-friendly interfaces, competitive upfront costs, and no-contract models. However, for businesses processing more than £5,000 per month or £60,000 annually, these options might not be the most cost-effective or efficient in the long run.

The Initial Appeal

Square and Zettle by PayPal are popular among SMEs because they offer simplicity and flexibility. Square, for instance, provides a straightforward pricing model with no monthly fees and a flat transaction fee of around 1.75% per in-person transaction. Similarly, Zettle charges 1.75% per transaction without any monthly fees, making it an attractive option for businesses just starting out or those with lower transaction volumes.

Hidden Costs and Limitations

While the low upfront costs and lack of monthly fees are appealing, these solutions may incur hidden costs that affect your bottom line:

• Higher Transaction Fees: For businesses with higher transaction volumes, the flat-rate fee structures of Square and Zettle can become expensive. Processing £60,000 annually at a 1.75% fee amounts to £1,050 in transaction fees alone.
• Customer Service: Square and Zettle’s customer service has received mixed reviews. Delays in support response times and limited customer service hours can be problematic, especially for businesses that rely heavily on smooth and timely transaction processing.
• Settlement Delays: Delays in settlement times can affect cash flow. While Square typically promises next-business-day deposits, any hiccups in this process can lead to financial strain.

The Dojo Go Alternative

For businesses processing higher volumes, the Dojo Go card terminal offers a more economical and efficient solution:

• Lower Transaction Fees: Dojo Go charges a lower transaction fee of around 1% with its bespoke service, which can significantly reduce costs for businesses with higher sales volumes. For instance, on £60,000 annual transactions, the fee would be £600, saving £450 compared to Square and Zettle.
• Monthly Terminal Cost: The Dojo Go terminal costs £20 per month. This fee is offset by the savings from lower transaction fees, making it a cost-effective choice for higher volume transactions.
• Superior Connectivity and Reliability: Dojo Go is designed for high-demand environments, offering advanced 4G and Wi-Fi capabilities to ensure seamless transactions even in challenging settings like festivals and outdoor markets. This reliable connectivity ensures that vendors can process payments smoothly without interruptions.
• Faster Settlements: Dojo Go offers next-day settlements as standard, ensuring better cash flow management for businesses.
• 24/7 Customer Support: Unlike some competitors, Dojo Go provides round-the-clock customer support, ensuring that any issues can be quickly resolved, which is crucial for maintaining uninterrupted business operations.
• User-Friendly Interface and Robust Features: Dojo Go terminals come with an intuitive interface and advanced features like contactless payments, robust security, and multiple connectivity options. These features not only enhance the user experience but also ensure the security and efficiency of transactions.

Wrapping Up

While Square and Zettle by PayPal provide accessible and straightforward solutions for many businesses, those with higher transaction volumes should consider alternatives like Dojo Go. The potential savings on transaction fees, coupled with reliable connectivity, faster settlements, superior customer service, and a comprehensive set of features, make Dojo Go a compelling choice for growing businesses looking to optimize their payment processing costs and efficiency.

For more details on how Dojo Go can benefit your business, check out the Payment Solution Guy’s review on Dojo Go.

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