Square vs PayPal: Complete Comparison (2025)
Side-by-side analysis from payment processing experts
At a Glance
| Feature | Square | PayPal |
|---|---|---|
| Online Pricing | 2.9% + $0.30 | 2.9% + $0.30 |
| In-Person Pricing | 2.6% + $0.10 | 2.7% + $0.00 |
| Venmo Payments | Not available | 1.9% + $0.10 |
| Monthly Fee | None | None |
| Contract | None | None |
| Setup Time | < 24 hours | < 24 hours |
| Best For | Retail, Restaurants, In-person | E-commerce, Online-only |
| Hardware | Free with account | Available (paid) |
| POS System | Built-in | Limited |
| Brand Recognition | Good | Excellent |
Detailed Comparison
Pricing
Square
Square charges 2.6% + $0.10 for in-person payments (their strength) and 2.9% + $0.30 for online. No monthly fees or contracts. Square offers some of the lowest in-person rates in the industry.
Best for: Businesses with primarily in-person sales, especially retail and restaurants.
PayPal
PayPal charges 2.9% + $0.30 for online payments and 2.7% + $0.00 for in-person (via PayPal Zettle). Venmo payments cost 1.9% + $0.10. No monthly fees for standard accounts.
Best for: Online businesses that want brand recognition and Venmo payments.
In-Person vs Online
Square
Square is built for in-person payments. They offer free hardware, a complete POS system, inventory management, and employee management. Square Terminal and Square Register provide full-featured POS solutions.
- ✓ Free card readers included
- ✓ Complete POS system
- ✓ Inventory management
PayPal
PayPal focuses on online payments. While they offer PayPal Zettle for in-person payments, it's not as comprehensive as Square's POS system. PayPal's strength is online checkout and brand recognition.
- ✓ Excellent online checkout
- ✓ Venmo payment option
- ⚠ Limited POS features
Ease of Use
Square
Square is designed for ease of use. The POS system is intuitive, and online setup is straightforward. Perfect for businesses without technical resources. Free hardware makes it easy to get started.
PayPal
PayPal is easy to set up for online payments, especially with major e-commerce platforms. However, account holds can be frustrating, and customer service can be difficult to reach when issues arise.
Which Should You Choose?
Choose Square if:
- • You need in-person payments
- • You want free hardware included
- • You run a retail store or restaurant
- • You need inventory management
- • You want an all-in-one POS solution
Choose PayPal if:
- • You're online-only (no in-person sales)
- • You want maximum brand recognition
- • You want Venmo payment option
- • You're targeting customers who prefer PayPal
- • You need simple e-commerce integration
Frequently Asked Questions: Square vs PayPal
What are Square's fees compared to PayPal?
In-person payments: Square charges 2.6% + $0.10, while PayPal charges 2.7% + $0.00 for in-person. Square is slightly better for in-person. Online payments: Both charge 2.9% + $0.30, so they're equal. Square doesn't charge monthly fees, while PayPal may have fees for certain business accounts. Square also offers free hardware, which PayPal doesn't.
Is Square better than PayPal for restaurants?
Yes, Square is generally better for restaurants. Square offers Square for Restaurants with table management, menu management, and kitchen display systems. PayPal doesn't have restaurant-specific features. Square's free hardware and lower in-person fees also make it more cost-effective for restaurants with primarily in-person sales.
Can I use both Square and PayPal?
Yes, many businesses use both processors for different purposes. For example, you might use Square for in-person retail sales and PayPal for online e-commerce. However, this adds complexity to your payment processing setup. Most businesses choose one primary processor based on their main payment channel.
Which is easier to set up: Square or PayPal?
Square is generally easier for in-person payments because they provide free hardware and the setup is very straightforward. PayPal is easier for online-only businesses with simple e-commerce platform integrations. Both can be set up in less than 24 hours, but Square's free hardware makes it easier to get started with in-person payments.