PayPal vs Square
Choose PayPal if your priority is offering PayPal and Venmo at online checkout or building payments for a marketplace; choose Square if you need a point-of-sale system with an online store and business-management tools. Both accept online and in-person payments, offer subscriptions, and provide developer APIs. The deciding difference is the payment experience and operating tools you want to build around.
Last updated October 24, 2026.
At a glance
| Dimension | PayPal | Square |
|---|---|---|
| Primary tools | Online checkout, payments, payouts, and POS | POS, online store, payments, and business tools |
| Seller payment-processing regions | Available across 200+ global markets | Available in eight countries |
| Online payment options | PayPal, Venmo, cards, wallets, and Pay Later | Cards, digital wallets, Cash App Pay, and Afterpay |
| Built-in online store | Not published | Square Online store builder |
| Marketplace payments | Seller onboarding for approved platform partners | Payments API with application fees |
| Subscriptions | Dashboard and Subscriptions API | Subscriptions and Subscriptions API |
| US software price | Checkout and POS: $0 monthly | Free: $0; Plus: $49; Premium: $149 monthly per location |
| US online card fee | Checkout: 2.99% + $0.49; Expanded: 2.89% + $0.29 | Free: 3.3% + $0.30; paid plans: 2.9% + $0.30 |
| US in-person card fee | Card present: 2.29% + $0.09 | Free: 2.6% + $0.15; paid plans: 2.5% or 2.4% + $0.15 |
| POS platforms | iOS and Android apps; card reader and terminal | iOS and Android apps; Square hardware |
| Integrations | REST APIs and partner directory | Square APIs and App Marketplace |
| Support | Help Center, chat, and phone contact | Chat and email; 24/7 phone on Premium |
Scroll the table sideways to compare each row.
Which should you choose?
Choose PayPal if
- Online sellers offering PayPal, Venmo, and Pay Later
- Businesses selling to customers across many markets
- Platforms seeking PayPal seller onboarding and payouts
- Teams adding checkout to an existing website
Choose Square if
- Stores and service businesses managing in-person sales
- Sellers who want a built-in online store
- Teams needing inventory and staff tools with POS
- Businesses comparing free and paid software plans
The verdict
PayPal is the better fit for businesses that want PayPal-branded payment options, broader international reach, or an approved marketplace integration. Square is the better fit for businesses that want a built-in online store alongside POS, inventory, and staff tools. Compare fees by payment method and Square plan rather than treating either provider’s starting rate as the cost of every sale.
PayPal vs Square: common questions
- Which should I choose for an in-person store?
- Square combines POS with an online store, inventory, and staff tools. PayPal also offers POS apps, a card reader, and a terminal. Choose based on which operational tools you need alongside payment acceptance.
- Can customers pay with PayPal or Venmo?
- PayPal offers PayPal and Venmo as online payment options, with Venmo availability limited to the US. Square lists cards, digital wallets, Cash App Pay, and Afterpay among its supported payment methods; availability depends on the selling channel and location.
- Does either product require a monthly fee?
- PayPal publishes no monthly fee for its checkout and POS offerings. Square Free costs $0 per month, while Square Plus costs $49 and Square Premium costs $149 per month per location. Processing fees and any applicable extras are separate.
- How do US online card processing fees compare?
- PayPal publishes 2.99% plus $0.49 for cards through PayPal Checkout and 2.89% plus $0.29 through Expanded Checkout. Square publishes 3.3% plus $0.30 for online cards on Free and 2.9% plus $0.30 on Plus or Premium. Square’s online API has separate pricing.
- Can both handle subscriptions?
- Yes. PayPal offers recurring payments through its business tools and Subscriptions API. Square offers subscriptions and a Subscriptions API for developers.
- Can I use either for marketplace payments?
- PayPal documents seller onboarding and payments for approved platform partners; approval is required for its Complete Payments Platform APIs. Square’s Payments API supports application fees on payments made for sellers, subject to its account and regional requirements.
- Which is suitable for international selling?
- PayPal says businesses can accept payments from customers in more than 200 markets. Square processes payments for sellers based in eight supported countries, while those sellers can accept eligible cards from international buyers in the seller’s currency.
- Do I need to buy hardware to take in-person payments?
- No. PayPal and Square both offer Tap to Pay on compatible phones. Each also offers optional payment hardware for other in-person setups.