For UK sole traders, pop-up shops, mobile hairdressers, and weekend market stallholders, committing to a long-term contract for a card terminal can feel daunting. You need flexibility. You need to take payments quickly without drowning in monthly fixed costs.
This is where pay-as-you-go (PAYG) card machines enter the picture. They promise a simple proposition: buy the card reader outright, pay no monthly fees, and just pay a small percentage per transaction.
But a quick Google search reveals a crowded market. Everyone claims to be the cheapest. So, how do you cut through the noise and find the truly most affordable option for your specific business needs?
At NangPay, we believe in total transparency for UK independent businesses. In this guide, we’ll break down exactly how to evaluate the cost of PAYG terminals and answer the burning question: who is really the cheapest?
What Exactly is a Pay-As-You-Go Card Machine?
Before diving into prices, let’s clarify what this term means in the UK payments industry.
A pay-as-you-go card machine model generally means:
- No fixed monthly rental fees: You don’t pay £20 a month just to have the machine sitting on your counter.
- No long-term contracts: You aren’t tied into a 12, 24, or 36-month agreement. You can stop using the service whenever you like without penalty.
- Upfront hardware cost: You purchase the card reader hardware outright (prices range typically from £19 to £60+ VAT).
- Flat transaction rate: You pay a fixed percentage on every sale you process (e.g., 1.69% or 1.75%).
This model is highly attractive to businesses with seasonal fluctuations or very low transaction volumes.
Defining “Cheapest”: It’s Not Just About the Upfront Cost
This is the most critical part of finding the best deal. Many small business owners make the mistake of only looking at the cost of the card reader itself.
A machine that costs £19 seems cheaper than one that costs £29. But if the £19 machine charges a higher transaction fee, it will quickly become the most expensive option as soon as you start making sales.
To find the truly cheapest option, you must balance two factors:
1. The Initial Hardware Cost
This is the one-off fee to buy the device. The big players often run promotions, dropping prices to as low as £19 (excluding VAT) for basic mobile readers that connect to your smartphone via Bluetooth.
2. The Transaction Fee (The hidden cost)
This is where the real cost lies. Most standard PAYG providers in the UK charge a flat rate, typically hovering between 1.69% and 1.75% per transaction for standard UK cards.
While 1.75% sounds small, it adds up. If you process £2,000 a month, you are paying £35 in fees every single month.
The Popular “Pay-As-You-Go” Giants
When searching for these devices, three names usually dominate the UK market: SumUp, Zettle (by PayPal), and Square.
These companies have done a fantastic job of making card payments accessible. They offer slick mobile app integrations and cheap upfront hardware.
Typically, their pricing structure looks very similar:
- Hardware: Usually under £30 for their entry-level device.
- Transaction fees: Usually a fixed rate around the 1.69% – 1.75% mark for standard card payments.
For a business taking only a few hundred pounds a month, these are excellent, affordable solutions.
The Problem with Flat Rates
The issue with the major PAYG providers is the flat rate. Whether you turn over £500 a month or £5,000 a month, your rate remains pretty much the same high percentage.
As your business grows, that “cheap” pay-as-you-go solution starts to become very expensive.
The NangPay Approach: Affordable Flexibility for Growing Independents
At NangPay, we focus specifically on UK independent shops that need reliability and low costs.
We understand the appeal of pay-as-you-go flexibility. While we operate slightly differently from the “buy a reader in a supermarket” model, our goal is to ensure you aren’t overpaying just for the privilege of not having a long contract.
If you are an established independent business processing regular transactions, a standard 1.75% PAYG rate is likely costing you too much.
NangPay offers tailored solutions with transparent, low rates designed to keep more money in your pocket as you grow, backed by UK-based support that actually cares about your business.
Before you commit to a flat-rate PAYG giant, compare their transaction fees against a personalised quote from NangPay.
FAQs: Your Questions Answered
Here we address common queries regarding affordable payment terminals, structured for clarity.
The “cheapest” machine depends entirely on your transaction volume, as the total cost is a combination of the upfront hardware price and ongoing transaction fees.
However, in terms of pure pay-as-you-go (no contract, no monthly fee) options currently available in the UK market:
For lowest upfront hardware cost: Often SumUp (Air) or Square (Reader) run promotions making their entry-level devices the cheapest to buy initially, sometimes as low as £19 + VAT.
For lowest transaction fees on PAYG: Most major PAYG providers (Zettle, SumUp, Square) charge similar flat rates for standard transactions, typically ranging between 1.69% and 1.75%.
The Overall Cheapest Solution: For businesses processing very low volumes (under £500/month), the providers listed above are usually the cheapest option. However, for businesses processing higher volumes, a provider offering lower, bespoke transaction rates (like NangPay) will often work out significantly cheaper overall, even if the model isn’t strictly “pay-as-you-go” in the same way.
No. There is always a cost involved in processing card payments. The banks and card networks (Visa, Mastercard) charge fees for moving the money. If a provider claims “no transaction fees,” they are likely charging a very high monthly subscription fee instead to cover those costs.
Buying (Pay-As-You-Go): Best for new businesses, seasonal traders, or those with low or unpredictable sales volumes. Low commitment, higher per-transaction fees.
Renting/Contract: Best for established businesses with steady, higher sales volumes. You pay a monthly terminal rental but usually secure significantly lower transaction rates, saving money in the long run.