Lopay (from 0.39%) vs Square (2.6% Fees): UK Comparison 2026

Lopay operates UK-based support with a local phone number and email. Support hours align with UK business hours (9am-6pm GMT), and representatives understand UK payment regulations, VAT requirements, and local business challenges.

Square provides support primarily from US offices, which can result in delayed responses during UK business hours. While they have UK-specific documentation, support staff may be less familiar with UK-specific regulations like FCA guidelines or HMRC requirements.

Both processors handle GBP transactions seamlessly. However, if you accept international payments:

• • Lopay: Charges an additional 1% for currency conversion on international cards
• • Square: Charges 2.5% for international cards plus 1% currency conversion

For UK businesses serving primarily domestic customers, Lopay's lower base rate makes it more cost-effective. For businesses with significant international tourist traffic (e.g., London shops), the difference narrows but Lopay still maintains an edge.

Both Lopay and Square are FCA-regulated and comply with UK payment processing standards. They both support Strong Customer Authentication (SCA) as required by UK law. Lopay's UK focus means they're typically faster to implement UK-specific regulatory changes, while Square sometimes lags behind due to their global priorities.

Lopay integrates natively with Xero, QuickBooks UK, Sage, and FreeAgent - the most popular accounting platforms for UK SMBs. Transaction data syncs automatically for VAT reporting.

Square also integrates with these platforms but through third-party connectors in some cases, which can add complexity and occasional sync delays.

Lopay is significantly cheaper for most UK small businesses. With transaction fees of 0.79% flat compared to Square's 2.6% + £0.15, a business processing £10,000 per month saves approximately £792 per year with Lopay. The savings increase with higher transaction volumes.

Lopay doesn't have a built-in POS system. Instead, it integrates with popular third-party POS solutions like Lightspeed, Vend, and Shopify POS. Square includes a free comprehensive POS system with inventory management, which makes it better for retail businesses that need an all-in-one solution.

Yes, switching is straightforward. Both processors have no contracts or cancellation fees. You can sign up for Lopay, receive your card reader within 3-5 business days, and start processing. You can run both systems in parallel during the transition if needed. Historical transaction data can be exported from Square for your records.

For online payments, Lopay charges 2.9% + £0.25 while Square charges 3.3% + £0.30. Lopay is cheaper and integrates easily with e-commerce platforms like WooCommerce, Shopify, and Magento. Both offer secure payment links and invoicing features.

Yes, both Lopay and Square support contactless payments (including Apple Pay and Google Pay), chip & PIN, and magstripe cards. Both are EMV-compliant and meet UK payment security standards.

Both offer similar payout schedules. Lopay provides 1-2 business day payouts as standard, with next-day payouts available. Square also offers 1-2 business day payouts, with instant deposits available for an additional 1.5% fee. For most businesses, the payout timing is comparable.

For cafes and coffee shops, Lopay is typically better due to lower fees on high-volume, low-value transactions. A cafe processing 300 transactions per month at £50 average saves over £1,200 annually with Lopay. However, if you need built-in inventory management for tracking coffee beans, milk, and pastries, Square's ecosystem might justify the higher fees.

Lopay has no hidden fees - you pay only the stated transaction fees with no monthly charges, setup fees, or cancellation fees. Square also has transparent pricing for basic features, but advanced features (advanced reporting, employee management, multi-location support) require paid plans starting at £29/month.

No, both Lopay and Square require you to use their proprietary card readers for security and compliance reasons. However, both offer affordable reader options (typically £19-£49 for basic contactless readers). The readers are yours to keep with no rental fees.

Both processors have strong ratings. Lopay scores 4.8/5 on Trustpilot UK with users praising low fees and responsive UK support. Square scores 4.6/5 with users highlighting the comprehensive POS features but noting occasional support delays. For UK-specific issues, Lopay's local support team receives consistently higher marks.