PayPal vs Square
PayPal is global payment platform for online and in-person payments, invoicing, and transfers, while Square is payment processing with point-of-sale hardware, online payments, and business tools. PayPal is built for businesses wanting universal payment acceptance, whereas Square targets small businesses wanting pos and online payments.
| Feature | PayPal | Square |
|---|---|---|
| Free tier available | ✓ | ✓ |
| Open source | — | — |
| Checkout | ✓ | — |
| Global | ✓ | — |
| Hardware | — | ✓ |
| Invoicing | ✓ | ✓ |
| Online Payments | — | ✓ |
| POS | — | ✓ |
| Payments | ✓ | — |
Pricing: Both tools offer free tiers, so you can test each before committing. PayPal's free plan: No monthly fees. Square's free plan: No monthly fees.
Feature gaps: PayPal offers Checkout, Global and Payments that Square lacks. Square brings Hardware, Online Payments and POS that PayPal does not have. Both share Invoicing.
Team fit: PayPal is geared toward any size teams, while Square is aimed at small teams teams. Pick the one that matches where your team is today and where it is headed — migrating tools later is always painful.
Where each tool shines: PayPal's biggest strengths are: includes payments as a core feature, purpose-built for payment processing workflows. includes invoicing as a core feature, purpose-built for payment processing workflows. Square's biggest strengths are: includes pos as a core feature, purpose-built for payment processing workflows. includes online payments as a core feature, purpose-built for payment processing workflows.
Watch out for: With PayPal, users commonly note that free plan exists but key features are locked behind the paid upgrade. With Square, the main complaint is that free plan exists but key features are locked behind the paid upgrade.
choose PayPal if
- Your profile matches its sweet spot: businesses wanting universal payment acceptance
- You specifically need Checkout and Global
- You care about includes invoicing as a core feature, purpose-built for payment processing workflows
- Your team size fits the any size profile PayPal is designed for
- The free tier works for you: no monthly fees
choose Square if
- You need a tool built for small businesses wanting pos and online payments
- You specifically need Hardware and Online Payments
- You care about includes online payments as a core feature, purpose-built for payment processing workflows
- Your team size fits the small teams profile Square is designed for
- The free tier works for you: no monthly fees
frequently asked
What is the difference between PayPal and Square?
PayPal is global payment platform for online and in-person payments, invoicing, and transfers, while Square is payment processing with point-of-sale hardware, online payments, and business tools. PayPal is built for businesses wanting universal payment acceptance, whereas Square targets small businesses wanting pos and online payments.
Should I use PayPal or Square?
PayPal is built for businesses wanting universal payment acceptance. Square is built for small businesses wanting pos and online payments. Pick the one that fits.
When should I choose PayPal over Square?
Choose PayPal if Your profile matches its sweet spot: businesses wanting universal payment acceptance; You specifically need Checkout and Global; You care about includes invoicing as a core feature, purpose-built for payment processing workflows; Your team size fits the any size profile PayPal is designed for; The free tier works for you: no monthly fees.
When should I choose Square over PayPal?
Choose Square if You need a tool built for small businesses wanting pos and online payments; You specifically need Hardware and Online Payments; You care about includes online payments as a core feature, purpose-built for payment processing workflows; Your team size fits the small teams profile Square is designed for; The free tier works for you: no monthly fees.
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