Both Square and PayPal are robust payment processing platforms suitable for businesses of various sizes. PayPal offers more comprehensive international transaction and cryptocurrency support, while Square is known for its user-friendly interface and transparent pricing. The best choice depends on the specific needs and priorities of the business.
| Attribute | Block, Inc. (Square) | PayPal Holdings, Inc. |
|---|---|---|
| Payment processing fees | Square uses a flat-rate pricing model. In-person transactions: 2.6% + $0.10 per transaction. Online transactions: 2.9% + $0.30 per transaction. Manually entered transactions: 3.5% + $0.15 per transaction. Invoices: 3.3% + $0.30 for cards, or 1% (minimum $1) for ACH bank transfers. | Standard Digital Payments: 3.49% + $0.49 USD per transaction (PayPal Checkout, Pay with Venmo, PayPal Credit), 2.99% + $0.49 USD for sending/receiving money for goods and services (USD transactions). Advanced Credit and Debit Card Payments: 2.89% + $0.29 USD for USD transactions. QR Code Transactions: 2.29% + fixed fee ($0.09 USD for USD transactions). Micropayments: Fixed fee can be as low as $0.09 USD for USD transactions. |
| International transaction support | Square supports international transactions, but details on specific currency conversion fees are not available. | Supports over 200 markets, 25 currencies. Sending international payments (funded by PayPal balance/bank): 5% (min $0.99, max $4.99). If funded by credit/debit card: 5% (min/max) + 2.9% + fixed fee (currency-based). Currency conversion fee: ~3%. International commercial transactions: 1.5% fee. |
| Point-of-sale (POS) system features | Square POS lets customers pay, tip, and sign on a merchant's device. It supports credit cards, gift cards, and cash. Features include sending/tracking invoices, product customization, email receipts, discounts, refunds, real-time sales data, and inventory tracking. Square offers different 'modes' within its POS app tailored to specific industries. | PayPal POS (formerly Zettle): Process transactions, manage inventory, track sales. Features: Integration with PayPal, inventory management, customizable receipts, multi-platform (iOS/Android). Supports credit cards, contactless payments, PayPal. Sales analytics, employee management, offline mode. Hardware: card readers, terminals. Zettle terminal: all-in-one mobile POS, touchscreen, SIM, Wi-Fi/cellular, barcode scanner, dock with printer. |
| Mobile payment options | Square supports mobile wallets such as Apple Pay, Google Pay, and Samsung Pay. It also offers Tap to Pay on Android devices. | Supports NFC, digital wallets. Tap to Pay: Accept digital wallets and contactless cards using phone and PayPal POS app. |
| Business loan and financing options | Square Loans are offered to eligible Square sellers. Loan eligibility is based on factors like processing volume, account history, and payment frequency. Loan amounts range from $100 to $350,000. Repayments are made automatically from daily sales. There is no interest, but there is a fixed fee. | PayPal Business Loan: $5,000-$100,000 (up to $150,000 for repeat borrowers). Requires $33,300 annual revenue, 9-month-old business, PayPal Business account, credit checks, 13-52 week terms. PayPal Working Capital: $1,000-$200,000 (up to $300,000 for repeat borrowers). Requires 90-day PayPal Business/Premier account, $15,000/$20,000 PayPal sales in last 12 months. No personal credit check. |
| Integration with accounting software | Square integrates with QuickBooks and Xero. Commerce Sync can connect Square with any version of QuickBooks Online, QuickBooks Desktop, and Xero. | Integrates with QuickBooks and Xero. Syncs transactions, reduces manual entry, simplifies accounting. Real-time insights, cash flow monitoring, financial reports. |
| Fraud protection and security measures | Square offers chargeback protection to limit customer disputes. They monitor store activity and use machine learning to flag dubious orders. Square also provides tools such as Square Risk Manager to help prevent fraud. | Fraud protection services with tools and technologies. Fraud detection systems, real-time monitoring, fraud scoring. Chargeback protection (eligible merchants): waives fees, releases disputed amount ('unauthorized'/'item not received'). Data encryption, two-factor authentication, strong passwords. |
| Customer support availability and quality | Square offers customer support via live chat, phone, and email. Phone support is available at 1-855-700-6000, Monday to Friday, 6 am to 6 pm PST. Live chat support is also available during those hours. | Not available |
| Reporting and analytics tools | Square provides reports and analytics to help businesses track sales, identify trends, and manage finances. | Detailed reports and insights into sales trends and customer behavior. Customizable performance reports. |
| Ease of use for merchants | Square is known for its user-friendly interface. The platform is designed to be easy to set up and use for merchants with varying levels of technical expertise. | User-friendly application process, quick loan approval. POS system: straightforward setup, comprehensive features. Zettle Terminal: easy to set up and use, simplicity, speed, mobility. |
| Scalability for growing businesses | Square offers various plans and hardware options to scale with growing businesses. | Flexible financing options. POS system can be customized and expanded. |
| Cryptocurrency support | Block plans to roll out Bitcoin payments on its Square service, starting later in 2025 and reaching all eligible sellers by 2026. Merchants can choose to hold Bitcoin or auto-convert it to fiat currency. | U.S. merchants can buy, hold, and sell cryptocurrency. Enables external transfer of cryptocurrency on-chain. Supports over 100 cryptocurrencies and wallets. Introduced PayPal USD (PYUSD). |