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Personal Finance · head to head

PayPal vs Square

PayPal logo

PayPal

Personal Finance

The simpler, safer way to pay and get paid

From
$29/month
Rated
-
Full reviewWebsite
Square logo

Square

E-Commerce

Powering the economy

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Square has a free tier, so it costs nothing to try first.
  • Each has a real cost: PayPal currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios; Square plus plan pricing not specified in documentation
  • They diverge on capability: PayPal covers PayPal Checkout, Square covers Point of sale.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which PayPal and Square actually diverge.

Attributes where PayPal and Square differ
AttributePayPalSquare
Starting price$29/monthFree
Pricing modelusage-basedfreemium
Free tierNoYes
PlatformsWeb, Ios, Android, ApiPOS (Mobile app), Web
CategoryPersonal FinanceE-Commerce
Founded19982009

Identical on both: user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in PayPal

  • PayPal Checkout
  • Business debit card
  • Working capital loans
  • Shopify
  • BigCommerce
  • Buyer/Seller protection
  • Api support

Only in Square

  • Point of sale
  • Payroll
  • Banking
  • QuickBooks
  • Wix
  • EMV compliant
  • Hardware support

Both cover

  • Payment processing
  • Invoicing
  • WooCommerce
  • PCI DSS
  • Web support
  • Ios support
  • Android support

What people use each for

The jobs each tool is most often brought in to do.

PayPal

  • Paying online merchants without sharing card detailsnot Square
  • Sending money to friends and family domestically and internationallynot Square
  • Holding balances in multiple currencies for cross border purchasesnot Square

Square

  • Accept payments with all-in-one POS applicationnot PayPal
  • Online ordering and basic website creationnot PayPal
  • Invoicing and appointment bookingnot PayPal
  • Staff scheduling and loyalty programmesnot PayPal

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

PayPal

  • Currency conversion on international purchases and sends carries a 4.00 percent fee, and 3.00 percent in other conversion scenarios
  • Instant transfer to a bank or debit card costs 1.75 percent of the amount, with a minimum of 0.25 USD and a maximum of 25.00 USD
  • International personal transactions carry a 5.00 percent fee regardless of payment method, with a minimum of 0.99 USD and a maximum of 4.99 USD
  • Sending domestic personal payments funded by a credit card costs 2.90 percent plus a fixed fee of 0.49 USD
  • Instant transfers are capped at 25,000.00 USD per transaction

Square

  • Plus plan pricing not specified in documentation
  • Processing fees differ by tier but exact rates not detailed
  • Free plan pricing mentioned but specific features for Plus unclear
  • Text marketing charged at 3¢ per message after first 500 included

Pricing, plan by plan

PayPal

$29/month
  • Standard$2.99/transaction
    • Card payments
    • PayPal checkout
    • Invoice payments

Square

Free
  • FreeFree
    • Accept payments with all-in-one POS app
    • Online site builder (ordering profiles, basic websites, online stores, booking sites)
    • Item library and inventory tracking
  • Plus$null/mo
    • All Free plan features
    • Advanced POS features for food, retail, and appointments
    • Lower processing fees on card transactions

Which should you pick?

Choose PayPal if

  • You need paypal checkout.
  • You work on Web, Ios, Android, Api.
  • You also want business debit card.
PayPal review

Choose Square if

  • You need point of sale.
  • You want to start without paying.
  • You work on POS (Mobile app), Web.
  • You also want payroll.
Square review

Questions people ask

Is PayPal or Square better?
Neither clearly leads. PayPal starts at $29/month and Square at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, PayPal or Square?
Square has a free tier; the other does not. Paid plans start at $29/month for PayPal and Free for Square.
Does PayPal or Square run on more platforms?
PayPal runs on Web, Ios, Android, Api. Square runs on POS (Mobile app), Web.
Can I use Square for free?
Yes. Square has a free tier, so you can try it without paying. PayPal starts at $29/month.
What is PayPal best used for?
PayPal is most often used for paying online merchants without sharing card details, sending money to friends and family domestically and internationally, holding balances in multiple currencies for cross border purchases. Of those, paying online merchants without sharing card details and sending money to friends and family domestically and internationally are not what Square is typically brought in for.
What can PayPal do that Square cannot?
PayPal covers PayPal Checkout, Business debit card, Working capital loans, Shopify. Square covers Point of sale, Payroll, Banking, QuickBooks. Both handle Payment processing, Invoicing, WooCommerce, PCI DSS.

Answered from the vendors’ own pages

PayPal: Does PayPal charge fees and when do they apply?

PayPal states that fees apply when converting currency and sending money to accounts in another country. Specific fee amounts are not disclosed on the homepage but are referenced in their published fee schedule.

Source
Square: Does Square offer a free plan?

Yes, Square's free plan includes an all-in-one POS app, online site builder, item library and inventory tracking, invoicing, appointment scheduling, staff calendars, and checking and savings account access. No subscription fees are charged.

Source
PayPal: Is there a subscription cost to use PayPal's basic services?

No subscription fees are mentioned on the homepage. PayPal operates on a transaction-based fee structure for money transfers and payments rather than recurring charges.

Source
Square: What does Square Plus add compared to the free plan?

Square Plus adds advanced POS features for food and retail, lower processing fees on card transactions, custom loyalty programs, unlimited email marketing campaigns, text messaging, and staff scheduling and attendance tracking.

Source
PayPal: Are there restrictions on when I can use buyer protection?

PayPal offers buyer protection for eligible purchases, but coverage limitations exist. A user agreement sets the specific conditions for protection eligibility.

Source
PayPal: What payment methods can I link to PayPal?

PayPal's digital wallet allows storage of multiple payment methods and can be used for secure money transfers, payment requests, and checkout at major retailers.

Source
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