Payment processing and point-of-sale hardware built for in-person businesses.
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Square vs PayPal
Comparing Square and PayPal to help you pick the right Payment Processors for your needs.
| Feature | Square | PayPal |
|---|---|---|
| Pricing | Freemium | Freemium |
| Platforms | Web, iOS, Android | Web, iOS, Android |
| Editorial rating | ★ 4.2 / 5 | ★ 3.8 / 5 |
| Starting price | $0/month | 3.49% + $0.49per transaction (US, typical) |
| Community votes | 24 | 367 |
Square Pros & Cons
- Strong in-person/POS hardware ecosystem, not just an online payment API — card readers, registers, and kitchen display systems integrate seamlessly
- No monthly fee on the base plan, paying only a per-transaction percentage, which suits small or seasonal businesses with variable volume
- Free POS software is genuinely capable for small retail and food service businesses, not a crippled trial version
- Unified system for both in-person and online sales, useful for businesses selling through both channels under one connected inventory and reporting system
- Fast, well-known setup process that doesn't require technical integration work for a business just wanting to start accepting cards
- Per-transaction fees are higher than negotiated enterprise rates available from Stripe or other processors at significant volume
- Online and developer-facing tooling is less flexible and feature-rich than Stripe's API for businesses building custom payment flows
- Account holds and reserves for higher-risk transaction patterns are a recurring point of small business frustration in user reviews
- Hardware costs, while reasonable, are an additional upfront expense beyond the percentage-based transaction fees
PayPal Pros & Cons
- Exceptionally high consumer brand recognition and trust built over more than two decades
- The PayPal checkout button can measurably improve conversion for consumer-facing online stores
- Buyer and seller protection programs reduce friction and risk for both sides of a transaction
- Supports both business payment processing and simple peer-to-peer money transfers in one brand
- No monthly fees on standard checkout, similar to Stripe's pay-as-you-go model
- Standard transaction fees are generally higher than Stripe's comparable rates
- Developer experience and API design are generally considered less polished than Stripe's
- Account holds and disputes have drawn long-standing criticism for sometimes favoring buyers heavily
- Less suited to complex, developer-customized payment flows than Stripe's more flexible API
- Brand association with older, more basic online payment expectations versus newer competitors
Verdict: Square vs PayPal
Square and PayPal both serve the Payment Processors category well, but suit different priorities. Square carries the stronger editorial rating (4.2 / 5), Based on community engagement, PayPal is currently the more widely adopted choice (367 votes), but the better fit ultimately depends on your specific pricing, platform, and feature requirements.
Frequently Asked Questions
- Which is cheaper, Square or PayPal?
- Square and PayPal use a similar pricing model (both freemium), so the cheaper choice depends on which specific plan tier and feature set you need rather than the base pricing model.
- Is Square or PayPal rated higher?
- Square has the higher editorial rating at 4.2 out of 5, compared to PayPal's 3.8 out of 5. This is Kreemhunt's own staff rating, not a public user aggregate — review the pros and cons below for specifics that matter to your use case.
- Which platforms do Square and PayPal support?
- Square is available on Web, iOS, Android. PayPal is available on Web, iOS, Android. Both tools cover a similar range of platforms.
- Can I switch from Square to PayPal (or vice versa)?
- Most payment processors tools, including Square and PayPal, support data export in standard formats, making migration possible though rarely fully automatic. Expect to manually verify that custom configurations, integrations, and historical data transfer correctly, and budget time for the team to adjust to workflow differences between the two products.
- Should I choose Square or PayPal?
- Square and PayPal both serve the Payment Processors category well, but suit different priorities. Square carries the stronger editorial rating (4.2 / 5), Based on community engagement, PayPal is currently the more widely adopted choice (367 votes), but the better fit ultimately depends on your specific pricing, platform, and feature requirements.