In this article, the comparison will be on PayPal vs square, their price, features and what’s best in 2020. Before now, Square was one of the first to sell mobile card readers, while PayPal was a forerunner in online payments. Currently, both companies, offer similar services. Now, some users argue that PayPal is better off than square in some aspects, while other users on the other hand see Square as the best option when it comes to some specific areas.
Paypal vs Square
With all the back and forth arguments going on, I also decided to delve in and carry out some research of my own in order to spot the differences, similarities, advantages as well as the disadvantages of both payment options in order to know what works best for what area.
Before I go further, I would want to state that there is no one payment processor that is excellent in all areas. Each of them comes with their weaknesses and strengths, and you can only decide what’s best for you depending on your needs preference.
To further buttress my point, when it comes to comparing both payment processors, Paypal comes up tops in eCommerce payments, online invoicing, while square offers better-integrated payment tools than Paypal. Now, most users also believe that Square’s free point-of-sale (POS) system and business management system, makes square stand out from the two. Square also has competitive processing fees with no startup, monthly, or cancellation fees it also offers free POS software for your business as well as a free mobile credit card reader when you sign up for a free Square account.
When Should You Use PayPal – Paypal Vs Square
You should seriously consider using PayPal as your payment provider if you want to focus on running an online store. This is so because, online buyers prefer having PayPal as a payment option, as opposed to square, and Paypal’s secure system integrates with virtually all eCommerce platforms.
With the “Paypal Here” mobile payments service, Paypal can come in handy for you beyond just selling online. The Paypal Here service enables you to accept payments with the aid of mobile devices and even allows you to set up in-store checkout registers with approved third-party hardware. With Paypal, you also have a virtual terminal and recurring payment options, even though they come with monthly costs.
When to Use Square – Paypal Vs Square
Square comes in as a better alternative for businesses and individual sellers who want a low-cost way of selling anywhere. It’s also the best option for accepting all types of payments and managing everything in a centralized POS system.
- In-store retailers
- Sellers who use mobile devices in accepting payments
- Service providers who send invoices or those who automated payments
- Ecommerce store owners
- Multichannel sellers who combine in-store, online and mobile sales.
If you have a free square account, you have access to all payment options, with a full suite of inventory, sales, customer, and employee management tools. Square also offers a free magistrate credit card reader when you sign up. The icing on the cake is that, if you are looking for a payment solution that enables you to rt with zero cost, supports all types of sales, and helps you manage your entire business, then Square to the rescue. If you use Square, the only cost you will be bothering yourself about, are your credit card processing fees.
Paypal vs Square Costs
Below are sections on the comparison PayPal vs Square.
Paypal Here – Paypal Vs Square
Paypal Here is an app and card reader that offers two options which are: a mobile card reader which enables you to take debit and credit card payments, and a chip-and-swipe card reader for a greater span of payment methods. These include magnetic strip cards, chip cards, Apple Pay and Google Pay.
With every mPOS system, you are going to pay fees. However, Paypal Here is one of several companies that offer low-cost services, which do not require investing a bunch in new technology.
Here’s what the fees look like:
- Swipe fee – 2.7%
- Keyed entry fee – 3.5% plus 15 cents
- Online and invoiced transactions – 2.9% plus 30 cents
- Chargeback fee – $20
When it comes to card readers, Paypal offers 3, which are a mobile card reader, a chip-and-swipe reader and a chip-and-tap plus charging stand.
The mobile card reader is best for business with monthly sales under $500. The device is free when you sign up for PayPal here and is valued at $14.99.
The chip-and-swipe reader is ideal for businesses that take payments on the go or in-store. It is valued at $24.99.
The chip-and-tap plus charging card combination is best for restaurants, retailers or other counter-based businesses that accrue lots of revenues. It is available for purchase at $79.99.
Square – Paypal Vs Square
Square is an mPOS that offers several different iterations, including a standard POS system.
You have to download the app and order a card reader that plugs into your device. At this stage, you will be able to accept full array of cards.
The fees linked with Square are similar to that of Paypal, so at the end of the day, the deciding factor may have to be what card reader is best for your business.
- Swipe fee – 2.6% plus 10 cents.
- Keyed entry fee – 3.5% plus 15 cents
- Online and invoiced transactions – 2.9% plus 30 cents (or 3.5% plus 15 cents if processed using Card on File)
- Chargeback fee – None
Square offers an array of options of card readers with the most basic being the Square Readers for magstripe cards. They come in two versions one for Android and one for iOS. Both connect to your device and is free at sign up.
Square Reader for chip cards and contactless payments is an ideal option for both countertop sales and on-the-go payments. The cost is $49, or you can pay $17 a month for three months.
Another option is the Square Terminal, which works best for countertop sales. It can be purchased for $399, or you can pay $37 a month for 12 months. If you are new to Square, a $300 reimbursement is available on the terminal, which brings your total eventual total to only $99.
The Square Stand is ideal for those who use an iPad. It is an ideal card reader for retailers and restaurants. The cost stands at $199 (or $18 a month for 12 months)
There’s also the Square Register, which is a fully integrated POS terminal that requires no extra tablets or apps. It comes with hardware, software, and accepts all payments. You can either buy the terminal outright for $999 or pay $49 a month for 24 months.
As already stated above, there are different scenarios that will require you to either use Paypal or Square. So at the end of the day, it boils down to what you want, the kind of business you are doing, and the payment processor that best fits your business needs.