Payments comparison · 2026
PayPal vs Square (2026 Comparison)
Side-by-side: pricing, features, pros, cons, and our editorial winner for payments.
Winner summary
PayPal vs Square: how they differ
We have not scored PayPal against our rubric yet, so we are not naming an overall winner here. The dimensions below are still directly comparable.
Cheaper
Tie
Higher rated
Not compared
Better free tier
Tie
Feature comparison
| Dimension | PayPal | Square |
|---|---|---|
| Starting price | 3.49% + 49¢ | 2.6% + 10¢ |
| Free trial | Pay as you go | Free POS |
| Best for | Stores wanting trusted checkout | Retail, restaurants, omnichannel |
| Badge | — | — |
PayPal key features
- PayPal checkout
- Venmo
- Buy now pay later
- Invoicing
- Mass payouts
Square key features
- Card reader & POS
- Online store
- Invoicing
- Payroll add-on
- Inventory
PayPal — pros & cons
Pros
- Brand trust lifts conversion
- Easy buyer protection
- Wide acceptance
Cons
- Higher fees than Stripe
- Hold/freeze risk
Square — pros & cons
Pros
- Best omnichannel for SMB
- Hardware integrated
- Transparent pricing
Cons
- Less developer-friendly than Stripe
- Account stability complaints
When to pick which
Choose PayPal if…
- Payment processing
- Ecommerce checkout
- Invoicing
Choose Square if…
- Payment processing
- Point of sale
- Restaurants
- Retail