PayPal vs Square
A side-by-side look at PayPal and Square: pricing, payment methods, integrations, features, and company facts. Add up to 4 processors to widen the comparison.
Comparing 2 of 4.
| Compare |  PayPalNo reviews |  SquareNo reviews |
|---|---|---|
| Pricing | ||
| Online card rate | 2.99% + $0.49 | 2.9% + $0.30 |
| In-person rate | 2.29% + $0.09 | 2.6% + $0.15 |
| Keyed-in rate | 3.49% + $0.09 | 3.5% + $0.15 |
| International | +1.5% | N/A |
| ACH / bank | 0.8% (cap $5) | 1% ($1 min) |
| Monthly fee | $0 | $0 |
| Setup fee | N/A | N/A |
| Monthly minimum | N/A | N/A |
| Chargeback fee | $20 | $0 |
| Pricing model | Flat rate | Flat rate |
| Contract | No contract | No contract |
| Free trial | No | Yes |
| Payout time | Instant | Next day |
| Payment methods | ||
| Visa | Yes | Yes |
| Mastercard | Yes | Yes |
| Amex | Yes | Yes |
| Discover | Yes | Yes |
| PayPal | Yes | No |
| BNPL | Yes | No |
| Wallets | Yes | Yes |
| Apple Pay | No | Yes |
| Google Pay | No | Yes |
| Integrations | ||
| Hosted checkout | Yes | Yes |
| Shopify | Yes | No |
| WooCommerce | Yes | Yes |
| BigCommerce | Yes | No |
| Payment links | Yes | Yes |
| Invoicing | Yes | Yes |
| POS hardware | No | Yes |
| Wix | No | Yes |
| Virtual terminal | No | Yes |
| Features | ||
| Fraud protection | Yes | Yes |
| Chargeback protection | Yes | No |
| Reporting dashboard | Yes | Yes |
| Recurring billing | Yes | Yes |
| Tap to pay | No | Yes |
| Company | ||
| Founded | 1998 | 2009 |
| Headquarters | San Jose, CA, USA | Oakland, CA, USA |
| Company size | 1000+ staff | 1000+ staff |
| Regions | US, CA, EU, UK, Global | US, CA, UK, EU |
| PCI level | Level 1 | Level 1 |
| Currencies | 100+ currencies | Multiple (by region) |
| High-risk friendly | No | No |
| Get started | ||
| Visit / profile | ||
PayPal vs Square beyond the rate card
| Name | Best for | Consumer recognition | POS hardware |
|---|---|---|---|
| PayPal | Small business, cross-border, quick setup | Very high: most shoppers already have an account | Limited (via Zettle) |
| Square | Retail, restaurants, walk-in businesses | Lower brand recognition at checkout | Extensive, purpose-built ecosystem |
PayPal vs Square: which payment processor is right for you?
PayPal and Square both target small and growing businesses, but they solve different problems. PayPal is built around a trusted checkout button and a massive existing user base of PayPal wallet holders. Square is built around unifying in-person and online sales into one system. Here is how they stack up.
Where PayPal wins
PayPal's biggest advantage is trust and reach. Millions of shoppers already have a PayPal account, and offering "Pay with PayPal" at checkout can reduce cart abandonment simply because the option feels familiar. PayPal also makes cross-border selling straightforward: it supports payments in dozens of currencies and is a common default for international buyers who do not want to enter card details on an unfamiliar site. Setup is close to instant, and many businesses can start accepting payments the same day.
Where Square wins
Square is the stronger choice for businesses that sell in person as well as online. Its hardware lineup, meaning readers, terminals, registers and kiosks, is more mature and more widely deployed in retail and food service than PayPal's Zettle line. Square also unifies inventory, staff management, and reporting across online and in-person sales in one dashboard, which PayPal does not match as tightly.
Pricing in practice
PayPal's standard online rate (2.99% + $0.49) is higher than Square's (2.9% + $0.30), and that gap adds up on smaller transactions because of the higher fixed fee. For an online-led business, Square is the cheaper of the two on almost any basket size.
In person the order reverses. PayPal Zettle charges 2.29% + $0.09 against Square's 2.6% + $0.15, which is lower on both the percentage and the fixed fee, so Zettle is the cheaper card-present rate at every ticket size. The case for Square in a retail or food-service setting is the hardware, the POS software and the unified reporting, not the transaction rate.
PayPal can still make sense online despite the higher rate if the checkout-conversion boost from brand recognition outweighs the fee difference, which is worth testing directly with your own traffic if you are right on the fence.
Who should choose which
Choose PayPal if you sell primarily online, want the fastest possible setup, do meaningful cross-border business, or want the trust signal of a recognizable checkout button.
Choose Square if you have a physical location, need POS hardware, or want in-person and online sales managed from a single system.
For merchant feedback on payouts, holds and support, read the PayPal reviews and the Square reviews. If you are also weighing a developer-first platform, see Stripe vs Square and Stripe vs PayPal.
Fees and terms change frequently. Confirm current rates directly with each provider before signing up.
Frequently asked questions
- Can I accept PayPal payments through Square?
- Square does not natively support PayPal as a payment method at checkout. They operate as separate, competing processors.
- Which has faster payouts?
- PayPal balance transfers are effectively instant to your PayPal account, though moving funds to your bank can take a day or incur a small fee for instant transfer. Square's standard payout to a bank account is next-day.
- Which is better for a new online-only store?
- PayPal's setup speed and consumer trust make it a common first choice for brand-new online sellers, though many later add Square or another processor as they scale.