POSApt, Square, Zeller, Zettle and SumUp are among the cheapest POS systems in Australia in 2026, offering low upfront costs, free software options and affordable payment processing for small businesses, cafés, restaurants and retailers.

However, the cheapest POS system is not always the one with the lowest monthly fee. Hardware costs, merchant fees, online ordering fees, loyalty programs, inventory management features and payment processing charges can significantly impact the total cost of running a POS system.

Many business owners make the mistake of looking only at the monthly software subscription. A POS system that appears free may end up costing thousands of dollars more each year through higher transaction fees or expensive feature upgrades. On the other hand, a POS system with a monthly fee may actually save money if it provides lower merchant rates, flexible hardware options and more features included as standard.

In this guide, we compare POSApt, Square, Zeller, Zettle and SumUp based on the costs that matter most to Australian businesses in 2026.

To create this list, we considered the total cost of ownership rather than focusing on a single fee. A POS system with no monthly subscription may still become expensive if it has higher merchant fees, costly hardware, paid add-ons or service charges. We assessed each POS provider based on the costs Australian businesses are most likely to encounter throughout the year.

Monthly Software Costs

Some providers offer free POS software while others charge a monthly subscription. We compared the entry-level plans most suitable for small businesses and evaluated what features were included at each pricing level.

Merchant Service Fees

Merchant fees can become the largest ongoing expense for many businesses. Even a small difference in transaction fees can result in significant savings over a year, especially for businesses processing large volumes of card payments.

Hardware Costs

POS hardware can cost anywhere from a few hundred dollars to several thousand dollars depending on the setup. We considered both the initial investment and the flexibility to choose third-party hardware rather than being locked into proprietary devices.

Feature Costs

Many POS providers charge extra for advanced reporting, customer loyalty programs, online ordering, staff management, inventory tracking, multi-location management and marketing tools. We considered the cost of accessing these features and whether they were included or sold as add-ons.

Service Fees

Some POS providers charge additional fees beyond software subscriptions and merchant processing. These can include online ordering commissions, payment gateway fees, setup charges, support fees, integration costs or charges for additional terminals and users. These costs were factored into our rankings where applicable.

Flexibility

Businesses should have the freedom to choose hardware, payment providers and feature packages that suit their needs. Systems with fewer restrictions often provide better long-term value and allow businesses to control costs as they grow.

Overall Value

Rather than focusing solely on the lowest advertised price, we evaluated the overall value each POS system delivers. A slightly higher monthly fee can often be justified if it includes more features, lower transaction costs and fewer add-on charges over time.

1. POSApt

Why POSApt Is Number One

POSApt is one of the few POS providers in Australia that gives businesses multiple pricing options rather than forcing them into a single model.

Businesses can choose a free POS option with merchant processing, or select a paid software plan depending on their requirements. This flexibility allows businesses to optimise costs based on transaction volume and operational needs.

For many cafés, restaurants and retailers, this approach can result in lower overall costs compared with providers that rely heavily on transaction fees.

Monthly Costs

POSApt offers a free POS option for eligible businesses.

Paid plans are also available for businesses that prefer a traditional software subscription model.

This flexibility means businesses can select the pricing structure that delivers the lowest overall cost.

Merchant Fees

One of POSApt's biggest advantages is flexibility around payment processing.

Unlike some providers that require businesses to use a single payment ecosystem, POSApt works with multiple payment partners. This allows businesses to choose the merchant arrangement that best suits their transaction volume.

For high-volume businesses, even a small reduction in merchant fees can produce substantial annual savings.

Hardware Costs

POSApt supports a wide range of Android hardware. You can shop directly from the POSApt hardware store at affordable rates. 

This provides several benefits:

• Lower upfront hardware costs

• Greater hardware choice

• Easier replacement options

• Reduced dependence on proprietary equipment

Many businesses already own compatible devices which can further reduce setup costs.

Features Included

POSApt offers features that many competitors charge extra for.

These include:

• Cloud POS

• Inventory management

• Customer management

• Reporting

• Staff management

• Kitchen display integration

• Online ordering options

• Loyalty programs

• Multi-location management

For hospitality businesses, having these features available without multiple add-ons can significantly reduce ongoing expenses.

Best For

• Cafés

• Restaurants

• Takeaway shops

• Retail stores

• Multi-location businesses

• Growing businesses looking to reduce long-term POS costs

Pros

• Free POS option available

• Flexible merchant processing

• Wide hardware compatibility

• Strong hospitality features

• Australian support

• Online ordering available

Cons

• Less internationally recognised than Square

• Some advanced features depend on selected package

2. Square

Why Square Remains Popular

Square has become one of Australia's most recognised POS platforms due to its simple pricing and ease of setup.

Many startups choose Square because businesses can begin accepting payments quickly without paying monthly software fees.

Monthly Costs

Square offers a free POS plan that includes basic point-of-sale functionality.

This makes it attractive for new businesses with limited budgets.

However, advanced features often require paid upgrades or additional subscriptions.

Merchant Fees

Square charges a standard card-present transaction fee.

For businesses with low transaction volume, this simplicity can be appealing.

However, larger businesses may find the fixed transaction rate more expensive than negotiated merchant arrangements available elsewhere.

Hardware Costs

Square hardware is well designed and easy to use.

Options include:

• Square Reader

• Square Terminal

• Square Stand

• Square Register

The downside is that businesses are generally encouraged to stay within the Square ecosystem.

Features Included

The free version includes:

• Basic POS functions

• Sales reporting

• Customer directory

• Inventory tracking

Additional costs may apply for:

• Advanced inventory

• Team management

• Loyalty programs

• Marketing tools

Best For

• Startups

• Small retailers

• Market stalls

• Service businesses

• Low-volume operators

Pros

• No monthly fee for basic POS

• Easy setup

• Modern interface

• Strong ecosystem

Cons

• Transaction fees can add up

• Extra features often require paid upgrades

• Less payment flexibility

3. Zeller

Why Zeller Makes The List

Zeller has grown rapidly in Australia by combining payment processing, business banking and POS solutions into a single platform.

Many businesses are attracted to the lower transaction rates and modern hardware.

Monthly Costs

Zeller POS Lite is available without monthly software fees.

This creates a low barrier to entry for small businesses.

Merchant Fees

One of Zeller's strongest selling points is its competitive transaction rate.

For some businesses, this can produce meaningful savings compared with other providers.

Hardware Costs

Zeller Terminal offers an all-in-one payment and POS solution.

The hardware is modern and straightforward to use.

However, businesses seeking extensive hardware flexibility may find fewer options compared with open Android systems.

Features Included

Features include:

• Payment acceptance

• Business accounts

• Sales reporting

• Customer management

• Basic POS functionality

Additional software may be required for advanced hospitality operations.

Best For

• Small retailers

• Cafés

• Service businesses

• Businesses seeking integrated banking

Pros

• Competitive merchant fees

• Australian-based platform

• Integrated banking

• No monthly fee option

Cons

• Limited advanced hospitality features

• Smaller ecosystem compared with Square

4. Zettle

Why Zettle Remains Competitive

Zettle, backed by PayPal, remains a strong option for small businesses looking for a simple and affordable POS solution.

Monthly Costs

The basic software remains free for many users.

Merchant Fees

Transaction fees are straightforward and predictable.

This simplicity appeals to businesses that want minimal administration.

Hardware Costs

Zettle's card readers are affordable and portable.

This makes them ideal for mobile businesses.

Features Included

• Basic inventory

• Product management

• Sales reporting

• Payment acceptance

More advanced business features may require third-party software.

Best For

• Mobile businesses

• Pop-up stores

• Market vendors

• Small retailers

Pros

• Affordable hardware

• Easy setup

• PayPal integration

Cons

• Limited advanced POS features

• Less suited for larger hospitality venues

5. SumUp

Why SumUp Makes The Top Five

SumUp focuses on simplicity and affordability.

For micro businesses and sole traders, it remains one of the cheapest ways to start accepting card payments.

Monthly Costs

Most users can access basic POS functionality without monthly software fees.

Merchant Fees

Pricing is transparent and easy to understand.

Hardware Costs

SumUp readers are among the most affordable card payment devices available.

This helps reduce startup costs.

Features Included

• Payment processing

• Basic POS

• Sales tracking

• Product management

Advanced business management features are relatively limited.

Best For

• Sole traders

• Market stalls

• Tradespeople

• Mobile operators

Pros

• Low entry cost

• Simple setup

• Affordable hardware

Cons

• Basic feature set

• Not ideal for larger businesses

Many articles that compare POS systems focus only on monthly software fees. While this may seem like the easiest way to compare providers, it rarely reflects the true cost of running a POS system.

For many Australian businesses, the largest expenses come from costs that are not immediately visible when signing up. Merchant fees, hardware replacements, online ordering charges and premium feature subscriptions can add hundreds or even thousands of dollars to annual operating costs.

Before choosing a POS system, it is important to understand the hidden expenses that may affect your business over time.

Merchant Fees

Merchant fees are often the biggest ongoing cost associated with a POS system.

A difference of only 0.2% may not seem significant at first. However, the impact becomes much clearer when sales volume increases.

For example, a business processing $50,000 per month in card transactions would pay approximately $1,200 more per year if its merchant rate was 0.2% higher than an alternative provider.

Businesses processing $100,000 or more per month may see even greater differences.

This is why many larger businesses look beyond free POS software and focus on the total payment processing costs.

Online Ordering Costs

Online ordering has become an essential part of many cafés, restaurants and takeaway businesses.

While some POS providers offer online ordering functionality, it is not always included in the base subscription.

Businesses may encounter additional costs such as:

• Monthly online ordering fees

• Commission per order

• Payment gateway fees

• Website integration costs

• Third-party delivery platform charges

A POS system that appears affordable initially may become considerably more expensive once online ordering is added.

Loyalty Programs

Customer loyalty programs can help increase repeat business, but many POS providers charge additional fees for loyalty features.

These costs may include:

• Monthly loyalty subscriptions

• SMS marketing fees

• Customer database fee

• Reward program management costs

For businesses actively using customer retention strategies, these expenses can accumulate quickly throughout the year.

Additional Terminals

Many businesses require more than one POS terminal.

A busy café may have multiple ordering stations, while a retail store may need additional checkout counters during peak trading periods.

Costs can include:

• Additional hardware purchases

• Additional software licences

• Extra user fees

• Additional payment terminals

When comparing POS systems, it is important to calculate costs based on the number of terminals actually required rather than the advertised price for a single device.

Inventory Management

Basic inventory tracking is often included in entry-level POS plans. However, more advanced inventory features are frequently reserved for higher subscription tiers.

Businesses may need to pay extra for:

• Stock forecasting

• Supplier management

• Purchase order management

• Multi-location inventory tracking

• Automated stock alerts

Retailers with large product catalogues should carefully review inventory-related costs before selecting a POS provider.

Staff Management

Staff management tools can simplify payroll preparation, employee scheduling and performance tracking.

However, these features are often sold separately from the core POS software.

Additional costs may include:

• Staff rostering tools

• Employee time clock features

• Payroll integrations

• Workforce reporting

• Additional user licences

For businesses with multiple employees, these costs can become a noticeable part of the monthly technology budget.

Accounting Integrations

Many businesses rely on accounting platforms such as Xero, MYOB or QuickBooks.

While integrations are often promoted as standard features, some POS providers charge additional fees for advanced accounting connections.

Potential costs include:

• Integration subscriptions

• Third-party connector fees

• Advanced reporting modules

• Additional bookkeeping automation tools

These expenses are frequently overlooked when businesses compare the best POS systems based solely on monthly software pricing.

Payment Terminal Costs

The advertised POS software price does not always include the cost of payment hardware.

Businesses may need to purchase or replace:

• EFTPOS terminals

• Receipt printers

• Cash drawers

• Barcode scanners

• Customer displays

Some providers offer affordable entry-level hardware but require businesses to remain within their ecosystem for future upgrades.

Support And Training Fees

Customer support can vary significantly between POS providers.

While some providers offer unlimited support, others charge additional fees for premium assistance or onboarding services.

Possible costs include:

• Setup fees

• Installation fees

• Data migration costs

• Staff training sessions

• Priority support subscriptions

Businesses should always confirm what level of support is included before making a decision.

Contract Exit Costs

Although many modern POS providers operate on month-to-month agreements, some businesses may still encounter costs when changing providers.

These costs can include:

• Early termination fees

  Hardware replacement costs

• Data migration expenses

• Staff retraining costs

• New hardware purchases

Choosing a flexible system can reduce the risk of expensive transitions in the future.

Payment Flexibility

One of the most overlooked costs is being locked into a specific payment provider.

Some POS systems require businesses to use a single merchant processing service. While this may simplify setup, it can limit the ability to negotiate better transaction rates as the business grows.

A system that allows flexibility with payment processing may help reduce long-term merchant fees and provide greater control over operating costs.

The Real Cost Of A POS System

The cheapest POS system is not always the one with the lowest monthly fee.

A business paying $0 per month for software could ultimately spend more through higher merchant fees, expensive feature upgrades, online ordering charges and hardware restrictions.

When comparing POS systems, business owners should calculate the total annual cost of ownership, including:

• Software subscriptions

• Merchant fees

• Hardware purchases

• Online ordering fees

• Loyalty program costs

• Additional terminal fees

• Staff management tools

• Accounting integrations

• Support costs

• Payment processing flexibility

Looking at the complete picture will help businesses choose a POS system that remains affordable both today and as the business continues to grow.

The cheapest POS system depends on your business type, transaction volume, required features and long-term growth plans.

A sole trader processing a few thousand dollars per month may find a completely different solution more affordable than a busy café processing hundreds of transactions every day. Similarly, a retailer with extensive inventory requirements may prioritise different features compared with a mobile service business.

Rather than asking which POS system is the cheapest overall, it is often more useful to ask which POS system is the cheapest for your specific business model.

Cheapest POS Systems By Business Type

For Cafés And Restaurants

POSApt is often the cheapest option for cafés and restaurants when total ownership costs are considered.

Many hospitality businesses require more than basic payment processing. Features such as table ordering, kitchen display systems, staff management, loyalty programs, inventory tracking and online ordering can quickly become expensive if purchased as separate add-ons.

POSApt is designed specifically for hospitality businesses and provides access to many of these features through a single platform.

Additional savings may come from:

• Flexible merchant processing arrangements

• Choice of Android hardware

• Online ordering integration

• Kitchen display system compatibility

• Customer loyalty features

• Multi-location management

For busy hospitality venues, merchant fees can have a significant impact on annual operating costs. Businesses processing large transaction volumes may find flexibility around payment providers particularly valuable.

Best For

• Cafés

• Restaurants

• Takeaway shops

• Food courts

• Hospitality groups

For Startups

Square remains one of the most attractive options for startups because it is simple to set up and requires very little upfront investment.

Many new businesses want to start accepting payments immediately without worrying about complicated installations or contracts. Square's free software offering makes it appealing to businesses with limited budgets.

Advantages for startups include:

• No monthly fee for basic POS

• Quick setup

• Easy onboarding

• Modern user interface

• Strong reporting tools

• Large ecosystem of applications

However, as transaction volumes increase, merchant fees and paid add-ons may become more important considerations.

For a startup processing relatively low transaction volumes, Square remains one of the cheapest entry points into the POS market.

Best For

• New businesses

• Pop-up stores

• Boutique retailers

• Small service businesses

• Side businesses

For Integrated Banking

Zeller provides strong value through its combination of payment processing, business banking and POS functionality.

Many business owners appreciate having payments and banking managed through a single platform. This can simplify administration and improve cash flow visibility.

Potential advantages include:

• Integrated business accounts

• Competitive transaction rates

• Fast settlements

• Simplified financial management

• Modern payment hardware

Businesses looking for a streamlined payment and banking solution may find Zeller offers excellent value compared with using separate providers.

Best For

• Small retailers

• Professional services

• Growing businesses

• Businesses wanting integrated banking

For Mobile Businesses

Zettle and SumUp are often among the cheapest options for businesses that operate away from a traditional shopfront.

Mobile businesses typically prioritise:

• Portable hardware

• Low startup costs

• Easy setup

• Reliable card acceptance

• Simple pricing

Because these businesses often require only a single payment device, expensive POS software subscriptions may not be necessary.

Zettle and SumUp both offer affordable card readers and straightforward pricing models which make them attractive options for businesses that operate on the move.

Best For

• Market stalls

• Tradespeople

• Mobile service providers

• Food trucks

• Event vendors

Cheapest POS System Based On Monthly Sales Volume

The cheapest POS system can also vary depending on how much your business processes in card payments.

There is no single POS system that is the cheapest for every Australian business.

Businesses with very low transaction volumes may find SumUp or Square the most affordable starting point.

Businesses looking for integrated banking may prefer Zeller.

Mobile operators often benefit from the simplicity of Zettle or SumUp.

However, for cafés, restaurants, takeaway shops, retailers and growing businesses that require advanced features, hardware flexibility and the ability to optimise payment processing costs, POSApt often delivers the lowest total cost of ownership over the long term.

The best approach is to compare not only monthly software fees but also merchant fees, hardware costs, feature costs and service charges before making a decision.