# Square Payments vs PayPal: Features and Cost Comparison 2026 | Capterra > Square Payments vs PayPal: Which payment processing tool is right for you? Dive into our detailed comparison of their features, costs, and user experience to make your decision. Source: https://www.capterra.com/compare/170278-207944/Square-Payments-Processing-vs-PayPal --- # Square Payments vs PayPal Features and Cost Comparison Last updated March 23rd, 2026 Provider data verified by our Software Research team, and reviews moderated by our Reviews Verification team.[Learn more](https://www.capterra.com/our-story/) Your comparison: Square PaymentsPayPal2/4 selected [Square Payments](https://www.capterra.com/p/170278/Square-Payments-Processing/)[4.7 (2682)](https://www.capterra.com/p/170278/Square-Payments-Processing/reviews/) [PayPal](https://www.capterra.com/p/207944/PayPal/)[4.6 (26395)](https://www.capterra.com/p/207944/PayPal/reviews/) [## Square Payments](https://www.capterra.com/p/170278/Square-Payments-Processing/)[4.7 (2682)](https://www.capterra.com/p/170278/Square-Payments-Processing/reviews/) [## PayPal](https://www.capterra.com/p/207944/PayPal/)[4.6 (26395)](https://www.capterra.com/p/207944/PayPal/reviews/) Starting Price Contact vendor Starting Price Contact vendor for pricing Value-for-Money 4.5 Functionality 4.6 Ease of Use 4.7 Customer Service 4.4 Starting Price $0.29 Starting Price $0.29 Value-for-Money 4.5 Functionality 4.6 Ease of Use 4.6 Customer Service 4.2 Reviews Sentiment Based on [2,682 reviews](https://www.capterra.com/p/170278/Square-Payments-Processing/reviews/) Positive 2,530 Neutral 97 Negative 55 Positive 2,530 Neutral 97 Negative 55 Reviews Sentiment Based on [26,395 reviews](https://www.capterra.com/p/207944/PayPal/reviews/) Positive 24,809 Neutral 1,062 Negative 524 Positive 24,809 Neutral 1,062 Negative 524 Best for (according to reviews) - **Business size**: Small businesses account for 2,206 reviews, representing 84% of feedback, suggesting strong market traction in this segment. - **Industry**: Retail, health & wellness, and arts & crafts together represent 18% of reviews, indicating diverse but modest adoption across these sectors. - **Use cases**: Payment processing (78%) and mobile credit card processing (58%) are the main uses, with limited focus on order management. Best for (according to reviews) - **Business size**: Small businesses account for 19,138 reviews (74%), indicating strong adoption among this segment compared to enterprises (15%) and midsize businesses (11%). - **Industry**: Education management, IT services, and marketing/advertising each contribute 5% of reviews, reflecting a broad but not concentrated industry usage. - **Use cases**: Payment processing (67%), online ordering (25%), and billing/invoicing (24%) are the primary use cases, highlighting a focus on digital transactions and commerce. ## Not a match? Find software alternatives tailored to your priorities. These software suggestions are similar to those you’re currently comparing. 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Reviewers appreciate its transparent pricing, integration with accounting software, and ease of use for card payments, saying it is particularly valuable for businesses that prioritize straightforward setup and compatibility with various devices. They note that while Square Payments offers strong data security and customizable options, some experience higher fees and occasional connectivity issues. PayPal PayPal users consider it ideal for those seeking secure, fast online payment processing with global reach and comprehensive fraud protection. Reviewers highlight its integration with e-commerce platforms, support for multiple funding sources, and reliable purchase and sales management tools, mentioning that these features make it a strong choice for businesses with international customers or those needing versatile online payment options. They also value its competitive transaction rates, though some mention concerns about high fees for international transactions and occasional account holds. ## Connect with a Capterra advisor for a free 15-minute consultation Get a personalized software list aligned to your business needs with guidance from our expert advisors. Our team has helped 1 million+ businesses like yours find options that fit their needs. ## Features comparison Choosing a payment processing solution like Square Payments or PayPal involves more than just comparing prices. Evaluating the features and capabilities of each option is key to finding the right fit. Selecting a solution that integrates well with your needs can improve efficiency and prevent spending on features you don't require. Here's how these two options measure up in key areas. \[[1](#source-item-1)\] Key features rated by users Features selected based on 49,940 reviews from Payment Processing users. about the Fit Score methodology. Fit Score methodology To calculate the Fit Score, our proprietary methodology factors in the following: - The importance level for each feature. By default, this is determined by user reviews. They can rate a feature Critical, High, Low, or Not Used. - Feedback from real users on how the product performs for each key feature, derived from verified user reviews and ratings. Please note: - To calculate the Fit Score, the number of reviews for those features and the actual rating carry the same weight. You might see that, in some cases, even though the ratings are the same, we still determine a winner because it had more reviews. - If the Fit Score is not shown for a specific product, that only means there are currently not enough relevant data points to develop a meaningful score. It does not indicate that the product should be excluded from further evaluation. Square Payments 76%Fit Feature ratings Payment Processing N/A Data Security 4.7 Online Payments 4.6 Debit/Credit Card Processing 4.7 PayPal 100%Fit Feature ratings Payment Processing 4.6 Data Security 4.6 Online Payments 4.7 Debit/Credit Card Processing 4.5 Payment Processing 0.0 (0) 4.6 (3435) Square Payments users appreciate the ease of use and versatility of the platform, noting its compatibility with various devices and its ability to handle multiple payment channels. They find it particularly useful for mobile and in-person transactions. However, some users report issues with delayed transfers and occasional connectivity problems. PayPal users value the platform's reliability and speed, highlighting its ability to process payments instantly and securely. They also appreciate its global reach and fraud protection measures. Some users, however, mention concerns about high fees and account holds. Overall, users find Square Payments convenient for mobile transactions, while they value PayPal for its speed and security. Data Security 4.7 (465) 4.6 (3117) Square Payments users appreciate the robust data security measures, including encryption and two-factor authentication, which they say help protect sensitive information and build trust with customers. They also value the customizable security options and the platform's compliance with PCI standards. PayPal users similarly highlight the strong encryption and fraud detection systems, noting that these measures enhance user confidence and protect financial data. They also appreciate the platform's commitment to regular security updates. In general, users value both platforms for their strong data security, noting that Square Payments offers customizable options, while PayPal is praised for its comprehensive fraud protection. Online Payments 4.6 (480) 4.7 (3697) Square Payments users find the online payment features easy to set up and use. They appreciate the ability to create invoices and process payments through a virtual terminal, saying that it integrates well with various website platforms and offers convenience to customers. Some users, however, report occasional issues with currency processing and account transfers. PayPal users appreciate the convenience and security of online payments, noting the platform's widespread acceptance and ease of use. They also highlight the ability to link multiple funding sources and the protection offered during transactions. Overall, users find Square Payments easy to integrate and use for online payments, while they value PayPal for its convenience and security. Debit/Credit Card Processing 4.7 (471) 4.5 (1955) Square Payments users appreciate the platform's ability to handle debit and credit card transactions efficiently, noting its compatibility with various card readers and mobile devices. They find the processing fast and secure, which they say is essential for their businesses. Some users, however, mention occasional connectivity issues and higher fees. PayPal users value the convenience of linking multiple cards to their accounts, making online transactions quick and easy. They also appreciate the security measures in place and the flexibility offered by the platform. In summary, users find Square Payments efficient for card processing with some connectivity concerns, while they appreciate PayPal's convenience and security for online transactions. ## Pricing comparison ### Starting prices Square Payments Contact vendor for pricing PayPal $0.29 Other Not provided by vendor Free Trial Free Version [View pricing plans](https://www.capterra.com/p/207944/PayPal/pricing/) ### Value-for-money analysis 4.5 (2682) 4.5 (26395) A comparison of how reviewers evaluate the value for money provided by both Square Payments and PayPal indicates that Square Payments reviewers find it offers transparent pricing and reasonable fees, while PayPal reviewers appreciate its extensive features and competitive transaction rates. Reviewers find Square Payments to be a cost-effective solution for small businesses, citing its transparent pricing structure and the integration with other Square tools. They appreciate the flat-fee pricing per transaction and the reasonable card processing fees. Users also value the free version of the software, which they say covers basic needs, and the ability to upgrade as the business grows. However, some users mention that the costs can add up, especially for high transaction volumes and additional features. When it comes to PayPal, reviewers highlight its competitive transaction rates and the variety of payment options available. They appreciate the security and reliability of the platform, as well as the affordable transfer fees and discounts for non-profits. Users also value the seamless integration with various devices and platforms. However, some users note that the fees can be high, particularly for international transactions and currency conversions, and they mention occasional issues with customer service and transaction processing. ## How does the user experience compare on Square Payments vs PayPal? ### Overall rating 4.7 (2682) 4.6 (26395) ### User interface Square Payments PayPal ### Customer service and support Square Payments Email/Help Desk FAQs/Forum Knowledge Base Phone Support 24/7 (Live rep) Chat PayPal Email/Help Desk FAQs/Forum Knowledge Base Phone Support 24/7 (Live rep) Chat ## What users say about the pros and cons of Square Payments vs PayPal Both Square Payments and PayPal are solutions that have been reviewed by verified reviewers on Capterra. Check out what real users have to say about their experiences to see how Square Payments stacks up against PayPal and pick the one that fits best your needs. Users appreciate Square Payments for its flexible and efficient payment processing, noting its seamless integration with accounting software and mobile capabilities. They find it particularly beneficial for accepting card payments, which they say helps increase sales and is easy to use both online and offline. Reviewers also highlight its suitability for small businesses, citing its competitive pricing and transparent fee structures. Meanwhile, PayPal users value its secure and quick payment processing, praising its integration with e-commerce platforms and the ability to handle both debit and credit accounts. They also appreciate its card payment options and comprehensive purchase and sales management tools, which they indicate help grow their businesses. When it comes to cons, Square Payments users mention high transaction fees and occasional issues with customer service and mobile device compatibility. At the same time, PayPal users point out problems with money transfers, slow issue resolution, and high transaction fees. \[[2](#source-item-2)\] Pros Square Payments MW Melinda W OwnersArts and Crafts, Self-employedUsed the software for: 1-2 years. “The setup process was quick, and the tools for tracking sales and managing my business are very helpful. While the fees and occasional delays in deposits can be a downside, the convenience, flexibility, and professional features make it a great option for small business owners“ April 12, 2026 CB Crysta B SalesInsurance, 11 - 50 employeesUsed the software for: 1-2 years. “Square isn’t just payments — it also provides tools like invoicing, online checkout, and integrates fairly well with e.g. ecommerce or appointment-based businesses.“ November 27, 2025 PayPal Melanie M CoachConsumer Services, Self-employedUsed the software for: More than 2 years. “The free version gives me plenty of options, including creating a custom PayPal.me link which makes sharing my business with others even easier. Whenever I've needed to reach out to customer support, the messaging system feels a bit dated but, thankfully, I usually hear back same day.“ April 11, 2026 EB Emma B Financial ControllerNon-Profit Organization Management, 51 - 200 employeesUsed the software for: More than 2 years. “We can easily track and audit all transactions and it integrates with our accounting software leading to quick and accurate reconciliation of accounts.“ January 25, 2026 Cons Square Payments MW Marissa W Licensed Massage TherapistAlternative Medicine, Self-employedUsed the software for: More than 2 years. “I’m not the biggest fan of the customer service, granted I’ve only ever had to call for an issue a couple times over the 5+ years using this software, had to get transferred to a bunch of different reps and it was time sensitive as I needed access to money that was unusable in my square, and it was hard to get ahold of anyone I could understand.“ December 15, 2025 RS Rachael S ownerRetail, 2 - 10 employeesUsed the software for: Less than 6 months. “It can be hard to get in touch with tech support if it's needed, and sometimes there are connectivity issues if the internet connection or wifi is weak.“ December 28, 2025 PayPal Rabindra k Network Security AdministratorComputer & Network Security, 51 - 200 employeesUsed the software for: 6-12 months. “The biggest drawbacks are the fees that add up quickly—especially the 3-4% currency conversion markup on international payments, the 1.75% instant transfer fee, and dispute charges for sellers.“ December 4, 2025 NAGESH B Sr Transaction Processing OfficerInformation Technology and Services, 1,001 - 5,000 employeesUsed the software for: More than 2 years. “PayPal’s automated security systems are notoriously aggressive. If they detect a "spike" in your sales or a "suspicious" login, they can freeze your balance for 21 to 180 days.“ February 3, 2026 * * * Sources 1. Our research team identified features from vendor websites based on their analysis of what users find valuable or expect from payment processing software. This list is not exhaustive. For additional features, refer to the vendor’s website. 2. Review excerpts are passages extracted from longer reviews written by verified reviewers. We obtain these excerpts by applying an algorithm that considers factors including, but not limited to, length, topic coverage, and thematic relevance. Excerpts are evaluated for positive or negative sentiment and receive a sentiment score. They represent user opinion and do not represent the views of, nor constitute, an endorsement by Capterra or its affiliates. Excerpts are not edited for clarity or grammar. * * * Need Help Deciding Between Square Payments and PayPal? 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