PayPal and Square are two of the most popular pos software in the online business space. They both allow collecting online payments and charge similar fees, but they have key distinctions that your business should consider. PayPal is a relatively better option for small businesses with an international customer base, but if the price is a priority for you, Square may be your winner.

PayPal vs Square: An Honest Comparison In 2025

Both paypal and square are popular payment platforms in the usa. In this complete review, we will break down the features and pros and cons of each of the platforms this year.

Square features:

If you want to accept in-person payments, Square is a better option.One major benefit of Square is it integrates with other business tools and makes everything easier, such as employee management. Square charges the exact fee listed on their website for in-person card transactions, and there are no monthly fees.

You can easily calculate this on the square website that can help you estimate what your business will pay.

Its customer support includes an online knowledge base and community. Plus, you can get help by email, live chat, and phone support. The company warns on the website that there may be e a wait when you call, so feel free to use the callback option if you can’t wait on the line.”

PayPal features

On the hand, PayPal is the best pos system for receiving e-commerce and online payment. You will find its price list on the website. They are relatively easy to use and a perfect fit for small-business owners who want something easy to set up on their website. For most people, PayPal Payments are the Standard pos system because it’s designed to make integration simple for non-programmers. When it comes to customer support, PayPal offers phone support from 8 a.m. to 8 p.m on working days(Monday through Friday).

PayPal and Square Similiar Core Feature Includes:

• Fully-featured POS system.
• Ecommerce sales.
• Sell through social media.
• Send shareable payment links through emails and texts.
• Create invoices and buy buttons.
• QR code transactions.
• Issue refunds and discounts.
• Mobile apps for both Android and iOS.
• Cash drawer support.
• Virtual terminal for phone payments.
• Invoicing and subscription management.
• Employee management tools.
• Automated payment reminders.
• Features for small business owners.
• API solutions

PayPal Pros:

• PayPal offers 24/7 Customer support through live chat and a knowledge base.
• PayPal Integrates with other software companies such as Quickbooks, SalesVu, WooCommerce, and Big Commerce to collect payments easier and faster.
• The first card reader costs $29 and $79 for each additional device.
• It starts at $249
• PayPal doesn’t charge any monthly fee, but they charge 2.29% transactions cost plus $0.09 per transaction.

PayPal Cons:

PayPal is more expensive than Square on a per-transaction basis. If you are looking for detailed customization, you might find PayPal’s cut-and-paste implementation approach off-putting.

Square Pros:

• Square also offers 24/7 support through live chat, knowledge base, and blog.
• Square Integrates with SKU IQ, Linktree, Acuity Scheduling, GoDaddy Websites and Marketing, Wix, WooCommerce, JotForm to collect payments faster.
• The first reader is free, and each additional card reader is $10
• It starts at $299
• No monthly fees; 2.6% plus $0.10 per transaction

Square Cons:

Square has less price transparency for small businesses. For more than$250,000 in card transactions per year, they charge high than normal rate. Square payments are not very international compared to PayPal.If you are running an international online business, you will find out that Square supports card payments in very few countries, which is a problem for international businesses.

Final Thoughts

When choosing what payment platforms to use in 2025 for processing payments , you should consider their charging fees, transaction fees per transaction and easy to use platform to manage your business. Ideally , you should have both platforms accounts to maximize the potential of your business.