Square and Paypal are two great digital money accounts for individuals and businesses to use for receiving profit from their customers.
They allow you to send out invoices for automatic payments, accept various payment methods and scan debit or credit card using a device that connects to your smartphone.
These two companies have been very useful to small business owners for several years, but which one is the most effective at helping them earn profits and keep their customers happy?
Square vs. Paypal – Which is the Best for your Small Business?
As you would imagine, there are benefits and disadvantages to using both Paypal and Square. Those who have used the platforms for several years can tell you all about the pros and cons of each one.
While neither one is perfect, both Square and Paypal have some unique features designed to help merchants just like yourself make the most of their business. So, if you are curious about which is the best choice for your company, check out what we determined when we compared Square vs. Paypal.
Square vs. Paypal – How Does Each Company Compare When It Comes to Basic Features
All digital currency platforms will offer most if not all of the following features. Here are the results when wen compared Square vs. Paypal:
When it comes to mobile sales, Square offers the best mobile POS or point-of-sale software there is. Users get access to a free credit card reader, and the reader will work in both online and offline mode.
So, if you work in a rural area at a Farmer’s Market or produce stand, you can still take electronic payments even if you are not connected to Wi-Fi. Paypal doesn’t offer the same high-tech and convenient advancement for POS transactions.
Paypal offers invoicing and allows you to keep track of your incoming and outgoing funds. But they are limited to the amount of management features that they offer.
When it comes to online-only sales, Paypal is the clear winner. The online digital payment provider can support practically any type of online payment and integrates well with most ecommerce platforms.
If you own an online store, Paypal is the most reasonable choice for accepting payments.
For online invoicing, both Square and Paypal are good choices. Both are great for sending out invoices, payment reminders and payment requests. You can send as many invoices as you want for free and you can also accept online invoice payments using the same platform.
Square will take care of your automated payments with no additional fee while Paypal requires a $40 fee each month to take care of this task for you.
Square is the perfect choice for multichannel sales. They can seamlessly tie-in store, online, mobile and invoice sales all into one convenient business management system that keeps everything well-organized for you.
Price Breakdown for Using Square or Paypal for your Business
Both Square and Paypal have made a name for themselves in the small business payment processing industry. When you first check out their websites to learn about their prices and fees, the two platforms seem to be very similar.
But once you dig a little deeper into what each service costs and what you have to pay on a monthly basis to use each platform, you will begin to notice several key differences.
For Mobile Payment Processing Fees and Hardware Costs
In terms of mobile payment fees there is no account fees to use either Square or Paypal.
Swipe Tap and Dip Sales that include mobile payments and in-store POS sales cost Square users 2.75% while Paypal users pay 2.70%.
For Keyed-in Payments where you manually enter a card’s info into a Mobile POS system, both platforms charge 3.5% plus 0.15 cents per transaction.
Card reader options that include a free Magstripe Reader for card-swipe payments are free with signup for both platforms.
Chip and Tap readers accept more secure chip card and eWallet payment features. You have to pay for both the Square readers are $49 and Paypal readers are $29.99.
Mobile Selling Features for Square and Paypal
Both Square and Paypal have many of the same mobile selling features including:
While Paypal is the preferred choice for online sales, Square tops Paypal in three areas that affect mobile sales.
1. Square’s Convenient Offline Mode
If you lose your network or Wi-Fi connection or are in an area where you do not have internet connection, you can still accept card payments from our customers when you use the offline mode for Square payments.
Square allows you to swipe cards and complete sales in offline mode. Their mobile app will record and update data once your connection to the Internet is fully restored.
With Paypal, you cannot accept payments from customers if you don’t have a connection.
2. Square’s Mobile Point of Sale Software Has More Features Than PayPal
Square is the clear winner for mobile POS features. It is especially useful when it comes to keeping up with your inventory, employee time tracking and other customer management features that you may use on a regular basis.
3. Paypal Puts a Limit on the Amount of Keyed-in Payments You May Submit
With Paypal, it is possible to key-in payment info into their mobile point-of-sale application. But you can’t do it too often. If you do, Paypal will require you to add their Virtual Terminal feature to your account. This will cost you an additional $30 per month.
Square includes all these features for free and never limits the amount of keyed-in payments you can submit to their app.
When Small Businesses Should Use Square
Square is great for small business owners and individuals who are interested in a low-cost affordable way to sell their products or services anywhere at any time. It allows merchants to accept a variety of payments and manage all their details using a centralized POS system.
Their system is especially good for:
When you use your free Square account, you have access to various payment options and a full array of features that will help you keep track of payments.
You can access inventory sales and take control of your customer and employee management tools. You will receive a free magstripe credit card reader when you sign up for Square.
And if you are hoping to find a payment solution that allows you to start out with no costs upfront, one that supports various types of sales and one that will help you manage your business hassle-free, Square would be the best solution for you.
When Small Businesses Should Use Paypal
Paypal is an online payment giant that has been around for years and is well-known with buyers and sellers alike. If you operate an online store, you should consider using Paypal as your primary payment provider. Online buyers often prefer using Paypal as a payment option and their secure system integrates well with all types of ecommerce platforms.
You can do a lot with Paypal beyond selling items. Their mobile payment platform known as Paypal Here allows you to accept payments using your smartphone device. You can also set up checkout in-store with your current registers by using approved third-party hardware. Paypal offers virtual terminal and recurring payment option to make accepting payments easier.
The main disadvantage to using Paypal with your small business is the Point of Sale platform. If you need a good reliable POS system, then you should probably consider Square instead of Paypal. Like Square, Paypal allows you to accept various types of payments all on one account. But it doesn’t place all your POS details into one system for convenient business management.
If you only sell products or services online, you can use the Paypal order management system to manage your inventory easily. However, if you sell in stores, you will benefit more by using Square.
Which Would You Prefer with Square vs. Paypal?
Both Square and Paypal are excellent options for small businesses.
The platform that is best for you all depends on which one works best for your own particular needs.
If you have an online-only business, then you could benefit from using Paypal. But if you own an online and offline business that uses a POS system, then you would benefit more from using Square.