Both Stripe and Square can start accepting payments in minutes — but they are built for fundamentally different businesses. Stripe is an online-payments-first platform aimed at developers and internet businesses. Square is a point-of-sale-first platform built for physical retail, hospitality, and service businesses.
We have reviewed both platforms to help UK business owners make the right choice.
At a Glance: Key Differences
The table below summarises the most important differences between Stripe and Square for UK businesses. All fees are from official UK pricing pages and were verified in March 2026.
| Feature | Stripe | Square |
|---|---|---|
| Monthly fee | £0 (pay-as-you-go) | £0 (pay-as-you-go) |
| Online – UK cards | 1.5% + 20p (std) / 1.9% + 20p (premium) | 1.4% + 25p |
| In-person – UK cards | 1.4% + 10p | 1.75% flat |
| Chargeback fee | £20 per dispute | £0 |
| Tap to Pay surcharge | +10p per authorisation | Included |
| Recurring payments | +0.5% (Stripe Billing) | Standard rate |
| Accepted currencies | 135+ | Local currency only (1 per account) |
| Payment methods | 100+ incl. PayPal, Amazon Pay, Venmo | 20+ (major cards, Apple/Google Pay) |
| Cheapest card reader | ~£49 (BBPOS WisePad 3) | £19 + VAT |
| Hardware range | 2–3 readers only | Reader, Terminal, Register, Stand, Kiosk |
| Built-in inventory mgmt | Requires 3rd party | Built-in, free |
| Restaurant/Retail POS | Not available | Square for Restaurants & Retail |
| Free website builder | Requires integration | Square Online (free tier) |
| Developer API depth | Industry-leading | Good, less customisable |
| Fraud protection cost | 4p/transaction (Stripe Radar) | Included |
| 24/7 customer support | Chat & email 24/7 | Weekdays 9 am–5 pm (phone) |
| Learn more | Visit Stripe | Visit Square |
Quick Verdict
For most UK businesses, the right choice comes down to a single question: where do you primarily take payments?
Choose Square if…
Your business primarily takes payments in person — retail, cafĂ©s, restaurants, salons, markets, or mobile services. Square’s cheaper card reader (ÂŁ19 + VAT), zero chargeback fees, built-in free inventory management, and purpose-built hospitality and retail software make it the stronger all-round choice for physical-location businesses. It requires no technical knowledge to set up and run.
Choose Stripe if…
You primarily sell online, have international customers, or need complex or custom payment flows. Stripe accepts 135+ currencies and 100+ payment methods, including PayPal, Amazon Pay, and Venmo — none of which Square supports. It is the industry default for eCommerce, SaaS, subscription businesses, and developers who need to build bespoke checkout experiences.
It’s close if…
You run a hybrid business with significant online and in-person channels. In that case, compare your actual transaction mix. Higher in-person volume tips toward Square (better POS, lower hidden fees). Higher online volume or overseas customers tips toward Stripe (payment method breadth, multi-currency). The base transaction rates are similar enough that secondary factors — chargebacks, subscriptions, support — often decide it.
Fees & Pricing
Both platforms use a pay-as-you-go model with no setup fees, no monthly fees, and no long-term contracts. The tables below show all verified current UK rates.
Standard Transaction Fees
| Transaction Type | Stripe | Square |
|---|---|---|
| Online – standard UK cards | 1.5% + 20p | 1.4% + 25p |
| Online – premium UK cards | 1.9% + 20p | 1.4% + 25p |
| Online – EEA/European cards | 2.5% + 20p | 2.5% + 25p |
| Online – other international cards | 3.25% + 20p | 2.5% + 25p (+1.5% intl surcharge) |
| In-person – UK/EEA cards | 1.4% + 10p | 1.75% flat |
| In-person – international cards | 2.9% + 10p | 1.75% + 1.5% surcharge |
| Keyed-in / virtual terminal | Standard online rate | 2.5% |
| Tap to Pay surcharge | +10p per authorisation | 2.5% |
| Learn more | Visit Stripe | Visit Square |
Hidden Additional Fees
Standard transaction rates don’t show the full cost. The fees below are often overlooked but can significantly affect total cost — especially for businesses with subscriptions, high chargeback rates, or high in-person volume.
| Fee Type | Stripe | Square |
|---|---|---|
| Chargeback / dispute fee | £20 per dispute (refunded if you win) | £0 — no chargeback fees |
| Recurring payments | +0.5% per transaction (Stripe Billing) | Standard transaction rate |
| Instant payouts | 1% of payout (min 50p) | 1% of payout |
| Advanced fraud protection | 4p per screened transaction (Stripe Radar) | Included — no extra fee |
| PCI P2P encryption | 4p per authorisation | Included — no extra fee |
| Currency conversion | +2% on top of transaction fee | N/A (single-currency accounts) |
| Custom rates available? | ✓(high volume) | ✓ (£200k+ annual card sales) |
| Learn more | Visit Stripe | Visit Square |
Important — Stripe’s ÂŁ20 chargeback fee: This applies regardless of outcome, though it is refunded if you win the dispute. For businesses in higher-chargeback sectors such as hospitality, events, or travel retail, this is a material recurring cost. Square charges nothing for chargebacks at all — a meaningful advantage for any business that receives disputes regularly.
Real-World Cost Example
To illustrate true cost, consider a UK business processing ÂŁ20,000 online per month via 400 standard UK card transactions (average ÂŁ50 per transaction):
| Cost Component | Stripe | Square |
|---|---|---|
| Percentage fee | £300 (1.5% × £20,000) | £280 (1.4% × £20,000) |
| Per-transaction fixed fee | £80 (20p × 400 txns) | £100 (25p × 400 txns) |
| Total monthly fees | £380 | £380 |
| Learn More | Visit Stripe | Visit Square |
At this volume, for standard UK cards online, the platforms cost the same. The difference emerges with card mix, chargeback volume, subscriptions, and in-person channel fees. Businesses with recurring billing or frequent chargebacks will typically find Square meaningfully cheaper in total.
| đź’°Â Fees Verdict: Square wins on total cost for most UK businesses. Square is cheaper for online UK card payments on the base percentage rate. Stripe is cheaper for in-person contactless UK card payments (1.4% + 10p vs 1.75%). However, Stripe’s hidden fees — ÂŁ20 per chargeback, +0.5% for subscriptions, +10p Tap to Pay, +4p advanced fraud — mean the true cost difference is considerably larger. For most UK SMEs, Square has a lower total cost of ownership. |
Accepted Payment Methods & Currencies
Both platforms accept all major cards and digital wallets. The key difference is in alternative payment methods and international currency support.
| Payment Method | Stripe | Square |
|---|---|---|
| Visa / Mastercard / Amex | ✓ | ✓ |
| Maestro | ✓ | ✓ |
| Apple Pay / Google Pay | ✓ | ✓ |
| ACH bank transfers | ✓ | ✓ |
| PayPal | ✓ | ✗ |
| Amazon Pay | ✓ | ✗ |
| Venmo | ✓ | ✗ |
| Discover / Diners Club / UnionPay / JCB | ✓ | ✗ |
| Buy Now Pay Later (BNPL) | ✓ | ✓ |
| 135+ currencies accepted | ✓ | ✗ |
| Learn More | Visit Stripe | Visit Square |
| 🌍 Payment Methods Verdict: Stripe wins clearly Stripe accepts significantly more payment methods and all major global currencies. For UK businesses with international or European customers, Stripe’s multi-currency support is a decisive advantage — Square is limited to the currency of the country where your account is registered. If you regularly sell to overseas customers, Square’s single-currency limitation alone may make it unsuitable. |
Point of Sale (POS) Capabilities
The difference in POS depth between the two platforms is significant. Square’s POS is a mature, full-featured system with purpose-built versions for restaurants, retail, and appointment-based businesses. Stripe’s POS capabilities are functional but clearly secondary to its online payments focus.
Stripe Terminal
Stripe’s in-person offering is called Stripe Terminal and is designed primarily for developers wanting to unify online and in-person payments data. It covers the basics — accepting cards and contactless payments, managing readers from a dashboard, and supporting Tap to Pay via iPhone or Android — but it lacks native inventory management, team scheduling, loyalty programmes, and the restaurant/retail-specific features that Square has. Most advanced POS functionality requires third-party integrations.
Square POS
Square’s POS platform is free at the base level and handles inventory management, team management, real-time sales reports, customer loyalty, and invoicing. Beyond the free tier, Square offers industry-specific software:
- Square for Restaurants — table management, coursing, kitchen display integration, online ordering
- Square for Retail — purchase orders, cost of goods tracking, supplier management, detailed stock reports
- Square Appointments — calendar booking, automated reminders, no-show protection, staff scheduling
- Square Online — a free built-in website builder and eCommerce store, synced with in-person inventory
| POS Feature | Stripe | Square |
|---|---|---|
| Inventory management | ✗ | ✓ |
| Order management | ✗ | ✓ |
| Team management | ✓ | ✓ |
| Customer loyalty programmes | ✗ | ✓ |
| Marketing tools | ✗ | ✓ |
| Restaurant-specific POS | ✗ | ✓ |
| Retail-specific POS | ✗ | ✓ |
| Appointment booking | ✗ | ✓ |
| Multi-location support | ✓ | ✓ |
| Offline mode | ✗ | ✓ |
| Tap to Pay | ✓ | ✓ |
| e-commerce / online store | ✓ | ✓ |
| Reporting & analytics | ✓ | ✓ |
| Learn more | Visit Stripe | Visit Square |
| 🏪 POS Verdict: Square wins clearly Square is a materially better POS system for physical-location businesses. Built-in inventory, loyalty, and industry-specific software for restaurants, retail, and appointments are all native features — not integrations. Stripe Terminal is suitable for developers wanting unified payments data, but not for business owners who need a comprehensive in-person retail or hospitality system. |
Hardware
Square offers one of the most complete hardware ecosystems of any UK payment provider. Stripe’s hardware range is limited to a small selection of card readers.
| Hardware | Stripe (UK) | Square (UK) |
|---|---|---|
| Entry-level card reader | BBPOS WisePOS E / Stripe Reader S700 (~£179) | Square Reader — £19 + VAT |
| Smart countertop reader | ✗ Not available | Square Terminal — £149 + VAT (built-in printer) |
| Integrated till / register | ✗ Not available | Square Register — £599 + VAT |
| iPad stand / counter stand | ✗ Not available | Square Stand — £99 + VAT |
| Self-service kiosk | ✗ Not available | Square Kiosk (iPad-based) |
| Receipt printer / cash drawer | ✗ Not available | ✓ Available |
| Hardware bundles | ✗ Not available | ✓ From £419 + VAT |
| Tap to Pay (phone as reader) | ✓ (iPhone & Android) | ✓ (iPhone & Android) |
| Interest-free hardware payment | ✗ | ✓ Available on items over £100 |
| Learn more | Visit Stripe | Visit Square |
The Square Reader at ÂŁ19 + VAT is the most affordable card reader from any major UK payment provider. The Square Terminal (ÂŁ149 + VAT) is a self-contained device with a built-in receipt printer that requires no smartphone. The Square Register (ÂŁ599 + VAT) is a dual-screen countertop POS system suited to established retail or hospitality environments. Square also offers interest-free monthly instalments on hardware over ÂŁ100.
Stripe hardware must be ordered via the Stripe Dashboard and is priced in GBP for UK accounts. No terminals, registers, stands, or accessory ecosystems are available in the UK market.
| 🔧 Hardware Verdict: Square wins Square offers the cheapest entry-level reader in the UK market and a complete hardware ecosystem from portable Bluetooth readers to integrated dual-screen till systems. Stripe’s hardware is limited to a few card readers and is suitable only for businesses that primarily accept online payments and occasionally need in-person capability. |
Online Checkout Features
Stripe Online Checkout
Stripe’s online checkout is the industry standard for developer-built and custom checkout experiences. Stripe Checkout is a hosted, pre-built page optimised for conversion, while the Stripe Elements API gives developers full control over a custom embedded payment form — including colours, fonts, and shapes. Stripe Link allows customers to save payment details for one-click checkout across Stripe-powered sites, with instant card verification. Stripe Billing handles complex recurring billing, including trials, proration, metered billing, and dunning for subscription businesses.
Square Online Checkout
Square Online provides a built-in website builder with a free tier — you can launch an online store with no monthly fee, paying only transaction fees. It integrates natively with Square’s inventory and POS systems, so stock levels sync across physical and online channels automatically. Square supports payment links for email and social sharing, subscriptions, gift cards, Clearpay BNPL, and invoice payments.
| Online Feature | Stripe | Square |
|---|---|---|
| Hosted checkout page | ✓ | ✓ |
| Embeddable checkout widget | ✓ | ✓ |
| Shareable payment links | ✓ | ✓ |
| Subscriptions / recurring billing | ✓ | ✓ |
| Saved customer payments | ✓ | ✗ |
| Invoicing | ✓ | ✓ |
| Free built-in website / online store | ✗ | ✓ |
| Native inventory sync (online ↔ in-person) | ✗ | ✓ |
| Gift cards | ✓ | ✓ |
| Buy Now Pay Later | ✓ | ✓ |
| Learn more | Visit Stripe | Visit Square |
| 🛒 Online Checkout Verdict: Tie — different strengths Stripe wins on checkout customisation, payment method breadth, and developer flexibility — it is the right choice for businesses that need to build bespoke checkout experiences or accept international payment methods. Square wins on out-of-the-box eCommerce simplicity — a free built-in website builder and seamless inventory sync between online and physical stores make it ideal for businesses without a developer. |
Security
Both platforms are PCI DSS compliant and take security seriously. The key difference is what is included in the transaction fee versus what costs extra.
| Security Feature | Stripe | Square |
|---|---|---|
| PCI DSS Level 1 compliance | ✓ Included | ✓ Included, no SAQ required |
| Point-to-point encryption (P2PE) | 4p per authorisation | ✓ Included — no extra fee |
| Machine learning fraud detection | Basic free; advanced 4p/transaction (Radar) | ✓ Included — no extra fee |
| Chargeback protection service | 0.4% per txn (optional add-on) | Not needed — no chargeback fees charged |
| 3D Secure authentication | ✓ Included | ✓ Included |
| Dispute management tools | ✓ Included | ✓ Included |
| End-to-end hardware encryption | ✓ Included | ✓ Included |
| Learn more | Visit Stripe | Visit Square |
Square includes all core security features in the transaction fee with no additional charges. Stripe’s equivalent features are available, but some advanced layers require additional per-transaction fees — 4p for Radar’s advanced fraud detection, 4p for P2PE. Stripe Radar is genuinely sophisticated and may be worth the cost for high-volume or high-risk businesses, but for most UK SMEs, Square’s included security is excellent.
| đź”’ Security Verdict: Square wins on value; Stripe wins on advanced tooling Both platforms are secure and fully PCI compliant. Square includes all core security features at no additional cost, making it simpler and cheaper for most businesses. Stripe offers more advanced and customisable fraud tooling through Stripe Radar, but charges extra for the capabilities that Square provides by default. |
Customer Support
| Support Channel | Stripe | Square |
|---|---|---|
| Phone support | Callback request only (24/7 on paid plan) | Direct inbound line — weekdays 9 am–5 pm |
| Live chat | ✓ Available 24/7 | ✓ Via app & website |
| Email support | Response within 24 hours | Via ticket/form |
| Out-of-hours support | Chat & email 24/7 | Limited (phone weekdays only) |
| Developer support | Discord, docs, extensive API reference | Slack, community forum |
| Self-help resources | Support Centre, guides | Seller Community, Support Centre, YouTube tutorials |
| Paid support plans | ✓ Three tiers available | ✓ 24/7 access included on paid plan |
| Learn more | Visit Stripe | Visit Square |
Stripe’s support is available around the clock via chat and email — a meaningful advantage for businesses that operate outside standard working hours or experience an issue on a weekend. However, Stripe does not offer a direct inbound phone line; you can only request a callback, which could be inconvenient during a critical system issue. Square’s phone support is restricted to weekday business hours, which could be a problem for 7-day retail or hospitality businesses. Square’s Seller Community and YouTube tutorial library are notably richer self-service resources for non-technical users.
| 📞 Support Verdict: Stripe wins on availability; Square wins on self-help resources. Stripe’s 24/7 chat and email give it an edge for businesses that cannot afford downtime outside business hours. Square’s phone support is weekdays only, which is a real limitation for 7-day businesses. However, Square’s video tutorial library and Seller Community are superior self-service resources for non-technical business owners setting up for the first time. |
Who Is Each Platform Best For?
Choose Stripe if you are…
- Primarily selling online (eCommerce, SaaS, subscriptions, digital services)
- A developer or business with technical resources to build custom checkout flows
- Selling to international customers who need to pay in their local currency
- A larger or enterprise business with complex API or platform integration needs
- Accepting alternative payment methods such as PayPal, Amazon Pay, or local wallets
- Running a subscription or SaaS business needing advanced recurring billing logic
- Building a marketplace or platform where other businesses receive payouts
Choose Square if you are…
- A physical retail shop, café, restaurant, pub, or salon
- A market trader, pop-up, or mobile service business needing a portable reader
- A hospitality business needing table management, coursing, or kitchen display systems
- An appointment-based business — beauty, health, personal training, therapy
- A small business owner without a developer, needing quick and simple setup
- Wanting the cheapest card reader in the UK market (ÂŁ19 + VAT)
- Needing free built-in inventory management and POS software
- Running a hybrid business with both physical and online channels (UK customers only)
FAQs
Is Stripe or Square cheaper for UK businesses?
It depends on your transaction mix. For online UK card payments, Square is slightly cheaper on a blended basis (1.4% + 25p vs 1.5% + 20p for standard cards). For in-person contactless payments, Stripe is cheaper (1.4% + 10p vs Square’s 1.75% flat). However, Stripe’s additional fees — ÂŁ20 per chargeback, +0.5% for subscriptions, +10p Tap to Pay, +4p for advanced fraud — mean Square has a lower total cost for most UK SMEs.
Does Square work for online payments in the UK?
Yes. Square Online provides a free website and eCommerce store with a 1.4% + 25p transaction fee for UK cards. It is a capable online solution for most small businesses. However, Square is limited to your local currency — if you need to accept payments from international customers in multiple currencies, Stripe is the right choice.
What are the main disadvantages of Stripe for UK businesses?
The key drawbacks are: the ÂŁ20 chargeback fee (Square charges nothing), additional costs for features Square includes free (fraud protection, P2PE encryption, subscription billing), limited POS hardware options, and the fact that getting the most out of Stripe generally requires developer knowledge or resource. It is a powerful platform, but the hidden cost layers and technical complexity can make it challenging and expensive for small businesses.
What are the main disadvantages of Square?
Square’s primary limitations are: it only accepts payments in the local currency of your registered country (no multi-currency), it supports fewer payment methods (no PayPal, Amazon Pay, or specialist card types like JCB or UnionPay), and its in-person transaction fees (1.75%) are higher than Stripe’s for contactless payments. Its developer APIs are also less flexible than Stripe’s for custom integrations.
Can I use Square or Stripe for a restaurant in the UK?
Square is the significantly better choice for UK restaurants. Square for Restaurants is purpose-built software that handles table management, coursing, kitchen display systems (KDS), online ordering, and tableside payments. Stripe does not offer restaurant-specific POS software and would require integrating a separate third-party system to replicate this functionality.
Is Stripe good for small businesses in the UK?
Stripe works well for small online businesses and digital services. Its no-monthly-fee pricing is accessible, and basic online payment setup is straightforward. For small businesses that primarily take in-person payments, Square’s simpler interface, cheaper card reader, and richer free POS software make it the more practical choice without any technical knowledge required.
Can I use Stripe and Square together?
Yes, but it is rarely necessary or efficient. Some businesses use Stripe for their online checkout and Square for in-person payments, but managing two separate payment processors adds complexity in reporting, reconciliation, and customer data management. Most businesses are better served by choosing one platform and using it for all channels.
