Square vs PayPal
By Itai Varochik | Updated 2026
Quick Verdict
Overall Winner: Square (4.4/5)
We tested Square and PayPal side-by-side. Square comes out ahead overall, but PayPal may be better for specific use cases.
Score Breakdown
| Criteria | Square | PayPal |
|---|---|---|
| Features | 8.5/10 | 4.2/10 |
| Ease of Use | 9/10 | 4/10 |
| Value for Money | 8.5/10 | 3.2/10 |
| Customer Support | 7/10 | 2.8/10 |
| Overall | 8.5/10 | 3.8/10 |
Feature Comparison
| Feature | Square | PayPal |
|---|---|---|
| POS | Yes | No |
| Online Payments | Yes | No |
| Hardware | Yes | No |
| Banking | Yes | No |
| Payroll | Yes | No |
| Marketing | Yes | No |
| Send and Receive Payments | No | No |
| Buyer Protection | No | No |
| Seller Protection | No | No |
| Invoicing | No | No |
| Payment Gateway Integration | No | No |
Pricing Comparison
Square: 2.6% + $0.10 in-person
PayPal: 3.49% + $0.49 per transaction
Square Pros & Cons
Pros
- Free POS software
- Complete business ecosystem
- No monthly fees
- Great hardware
Cons
- Higher online rates
- Account stability issues
PayPal Pros & Cons
Pros
- Widespread acceptance by consumers and businesses globally
- Robust buyer and seller protection policies
- User friendly interface for sending and receiving payments
- Integration capabilities with numerous e-commerce platforms
- Established brand recognition fostering user trust
Cons
- Higher transaction fees compared to some competitors
- Potential for account freezes or limitations without clear explanation
- Customer service can be difficult to reach and resolve issues
- Funds can be held for extended periods for new or high volume sellers
Key Specifications
| Spec | Square | PayPal |
|---|---|---|
| Rating | 4.4/5 | 4.2/5 |
| Pricing | 2.6% + $0.10 in-person | 3.49% + $0.49 per transaction |
| Year Founded | 2009 | 1998 |
| Headquarters | San Francisco, CA | San Jose, CA |
Our Verdict
Square wins overall. Choose Square if you value Retail stores. Choose PayPal if you prioritize Individuals sending or receiving personal payments.
Frequently Asked Questions
Is Square better than PayPal?
Based on our testing, Square scores higher with a rating of 4.4/5 compared to PayPal's 4.2/5. However, the best choice depends on your specific needs.
What is the main difference between Square and PayPal?
Square is known for: All-in-one payment and business management platform.. PayPal is known for: The world's most recognized online payment platform with 430+ million users..
Which is cheaper, Square or PayPal?
Square pricing: 2.6% + $0.10 in-person. PayPal pricing: 3.49% + $0.49 per transaction.
Can I use Square and PayPal together?
While both tools serve similar purposes in the Payment Processing category, some users do use complementary features from both platforms.
What are the pros of Square?
Free POS software. Complete business ecosystem. No monthly fees
What are the pros of PayPal?
Widespread acceptance by consumers and businesses globally. Robust buyer and seller protection policies. User friendly interface for sending and receiving payments
Which payment processing should I choose?
Choose Square if you value Retail stores. Choose PayPal if you prioritize Individuals sending or receiving personal payments.