How Does PayPal Here Compare to Square?
Square Vs PayPal is not a topic of much debate. There are many similarities between the two and some differences too. So, essentially you need to assess how one is better for your business than the other.
Here’s how PayPal compares to Square.
Features
PayPal is more of a household name. But Square offers more features for businesses.
PayPal is only for making and receiving payments. In comparison, Square offers a host of business tools such as POS systems, free credit card readers, and other payment features.
PayPal’s payment system is quite robust. It is well-integrated with almost every e-commerce platform. Square is most suited for small businesses.
Square Vs PayPal feature review ($ amounts are approximate figures; subject to variations) –
. Square charges no monthly fee whereas PayPal charges $30 for Pro accounts. It, however, charges no fee for its standard accounts.
. Square charges no chargeback fee whereas PayPal’s chargeback fee is about $20.
. The processing fee (invoicing and e-commerce) for Square is 2.9% + 30 cents. PayPal also charges a similar fee.
. Processing fee (in-person payments) for Square is 2.6% +10 cents. The same for PayPal stands at 2.7%.
. Processing fee (keyed-in payments) for Square is 3.5% + 15 cents. PayPal charges the same amount.
. Deposit time for Square payments is 1-2 business days. You will need to pay an extra 1.5% for immediate deposits. PayPal offers immediate payments in PayPal accounts. It can take up to three business days for it to deposit it in your bank account.
. Square doesn’t accept PayPal payments other than Square online stores. PayPal accepts mobile app, online, and invoicing.
. The Square app is way better than the PayPal app. The latter is at times known to run slower. It also has fewer features than the Square app.
Square or PayPal – How to Choose?
Choose Square
. Choose Square if you want a low-cost selling payment processor with the option to manage it all using a centralized and well-integrated POS system.
. If you want a full business suite with your payment options, it makes sense to choose Square. You will get tools for managing inventory, bills, and management tools for employees and customers.
. Choose Square for a low-cost payment option for your business. It has no setup cost. It will offer you full support for different kinds of sales, and easy business management solutions. Square charges $49 for contactless and chip readers. But it offers free magstipe reader.
. Choose Square if your business is in these categories – coffee shops, restaurants, nightclubs, clothing stores, food trucks, and quick services eateries, small retail outlets, small eCommerce stores, etc. If your business caters to tourists, choosing Square can be a cost-effective solution for you. It is easy to set up and works well as a POS system. It has features such as split bill and tipping, which makes it an excellent solution for small-scale food businesses of all kinds. It is also really useful for freelance professionals.
Choose PayPal
. Choose PayPal if you operate an online business only. It is one of the best options for online businesses of all kinds. It is well-integrated with e-commerce platforms. It is suitable both small and slightly large-scale online businesses.
. PayPal offers services for payments via mobile devices. You can set up checkouts using third-party hardware. See if you find these features useful.
. PayPal offers more payment options. Other than the ones offered by both Square and PayPal (such as all major cards and most mobile wallets), the latter also allows check-in payments via its app. The cost of such payments is the same as most domestic cards. It also accepts all PayPal transactions. Choose PayPal if you need these option.
. PayPal payment buttons can be easily added for prompts such as ‘Donate Now’ or ‘Buy Now’. It also offers discounted processing fees for non-profits. If this is what you need then PayPal might a better option for you than Square.
All in all; Square is a more cost-effective option than PayPal. It also caters to both physical and online businesses. So, carefully assess the features and benefits of both as pertaining to your business and choose accordingly.