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Paypal vs. Square

January 14, 2022

Paypal vs. Square: Which Payment Processor is Right for Your Business?

If you’re running a small business, you need to be able to accept payments quickly and easily. That’s where payment processing technologies like Paypal and Square come in. Both of these services are designed to make it easy for businesses to accept payments from customers, but they have some key differences. So, which one is right for your business? Let’s take a closer look.

Paypal

Paypal has been around since 1998 and is one of the most widely-used payment processing services in the world. It’s especially popular with individuals who buy and sell items online, but it’s also used by businesses that need to accept payments from customers. Paypal allows you to create customized payment buttons that can be placed on your website, and it also has a virtual terminal feature that lets you accept payments over the phone or by mail.

Fees

Paypal charges 2.9% + $0.30 for each transaction. However, if you process more than $10,000 per month, you may be eligible for lower rates.

Square

Square is a newer player in the payment processing game, having been founded in 2009. It’s known for its point-of-sale systems that allow businesses to accept card payments using a mobile device. Square also offers a virtual terminal that lets you accept payments online or by phone.

Fees

Square charges a flat rate of 2.6% + $0.10 per transaction. If you process more than $250,000 per year, you can contact Square to negotiate custom rates.

Key Differences

While both Paypal and Square offer similar services, there are a few key differences to consider:

  • Paypal has been around for much longer and is more widely recognized than Square.
  • Square’s point-of-sale systems are particularly well-suited for businesses that need to process payments in-person.
  • Paypal offers more flexibility when it comes to payment buttons, making it a better choice for businesses that mainly operate online.
  • Square has a simpler fee structure, making it easier to understand if you’re a small business owner who doesn’t have a lot of experience with payment processing.

Conclusion

So, which payment processing technology is right for your business? Ultimately, the choice depends on your needs. If you’re looking for a simple, easy-to-understand fee structure and you do a lot of in-person sales, Square might be the better choice. If you need more flexibility with your payment buttons and your business primarily operates online, Paypal is the way to go.

Regardless of which service you choose, it’s important to make sure that you’re using a payment processor that is secure, reliable, and meets the needs of your business. By taking the time to research your options and compare different payment processing technologies, you’ll be able to make an informed decision that will help your business thrive.

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