PayPal vs Square
Updated 2026-09-03
Verdict
Square is a POS and payments platform with no monthly fee on Free (2.6% + $0.15 in-person, 3.3% + $0.30 online); PayPal is an online payments platform with 2.99% + $0.49 for card Checkout or 3.49% + $0.49 for PayPal/Venmo. Square for in-person retail/restaurant payments with free POS software; PayPal for online checkout and global consumer payments.
| Pricing | PayPal | Square |
|---|---|---|
| Pricing | 2.99 USD | 2.6 USD |
| Free tier | Yes | Yes |
| Platforms | Web, iOS, Android | Web, iOS, Android, POS hardware |
PayPal — Pros
- No setup or monthly fees — pay 2.99% + $0.49 per US card transaction, 3.49% + $0.49 for PayPal/Venmo
- Trusted global brand with 400M+ accounts and built-in buyer protection
- Checkout, Invoicing, Pay Later and Subscriptions out of the box
Square — Pros
- Free plan with no monthly fee; pay 2.6% + $0.15 per in-person transaction
- Free POS software, card reader and unlimited items to start selling fast
- No chargeback fees, plus online, invoice and API payment options
PayPal — Cons
- Per-transaction fees are higher than interchange-plus processors at volume
- Chargeback/dispute fee applies ($15, varies by region)
- Payouts and currency conversion carry additional fixed and percentage costs
Square — Cons
- Online payments cost more on Free (3.3% + $0.30) than in-person
- Plus ($49/mo) or Premium ($149/mo) needed to lower processing rates
- Best for SMB retail/restaurant; less suited to high-volume enterprise payments
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FAQ
Is PayPal cheaper than Square?
PayPal starts at 2.99 USD (checked 2026-09-03); Square starts at 2.6 USD (checked 2026-09-03). Check the current pricing page for the latest tiers.
Do PayPal and Square have a free plan?
Both PayPal and Square offer — see the comparison table above.
What platforms does PayPal vs Square support?
PayPal is available on Web, iOS, Android. Square is available on Web, iOS, Android, POS hardware.
Are PayPal and Square in the same category?
Yes. Both PayPal and Square are classified as cloud tools.