Square and PayPal are two giants in the payment processing world, known for their user-friendly card readers and comprehensive payment platforms.
In this article, I’ll offer a side-by-side comparison, shedding light on which to choose.
Square vs PayPal POS: My Verdict
For most small and medium-sized businesses, Square has the edge over PayPal POS.
Their entry-level card reader is the cheapest on the market at just £19, with more advanced products available for all business sizes.
Square strikes the right balance between affordability and functionality, Square has a comprehensive range of advanced features, including optional add-ons and 3rd party integrations.
However, choosing the right payment system for your business depends on several factors, including the nature of your industry, turnover, and your customer’s payment method preference.
For example, Square offers a lower transaction rate of 1.4% + 25p for online payments made with UK-issued cards. However, if you accept online payments from non-UK cards, PayPal POS’s flat rate of 1.75% would offer better value for money.
Despite these situations, Square remains one of the best entry-level payment systems on the market, backed up by class-leading software.
| Feature | Square | PayPal POS |
|---|---|---|
| Overall Score | 4.7/5 | 4.4/5 |
| Monthly Fees | Zero | Zero |
| Card Reader Cost | £19 + VAT. Get 25% off using code SEP25 by 25/10/2025*. T&Cs apply | £29 + VAT, £69 for additional readers |
| Card Present Transaction Fees | 1.75% | 1.75% |
| Free Trial | Yes | Yes |
| Customer Support | Email, live chat, phone support (working hours only) | Email, live chat, phone support (working hours only) |
| Suitable for Retail and Hospitality? | Yes | Yes |
| Terminal Pricing | £149 + VAT | £149 + VAT |
| Cards Accepted | All major credit/debit cards, Apple, Google, and Samsung Pay | All major credit/debit cards, Apple, Google, and Samsung Pay |
| Minimum Sales Volume | No minimum, £1-£1,000 transaction range | No minimum, £1-£2,500 transaction range |
| Ecommerce Payments | Supported | Supported |
| Payment Links | Available | Available |
| Refunds | Free | Free |
| Learn More | Visit Square | Visit PayPal POS |
*Offer commences 04/09/2025 at 5pm and expires 25/10/2025 at 5:00pm UK time or while supplies last, whichever comes first. Offer is for 25% off total cost of Square Terminal and Reader excluding VAT. Limited to 3 devices per person. Each code is limited to one redemption per account holder. Valid for Square customers located in the UK only. Offer not valid with guest checkout. Square reserves the right to modify, revoke or cancel the offer at any time. Offer cannot be combined with any other coupon. Void where prohibited, not redeemable for cash, and non-transferable.
Square Reader vs PayPal POS Reader
Square’s Reader is the cheaper option, boasting the lowest market price for its ultra-portable design, and supports cheaper online payments for European cards. It’s ideal for mobile payments but lacks a physical keypad and support for JCB, UnionPay, Discover, and Diners Club cards.
On the other hand, the PayPal Card Reader 2 features a tougher build and, supports a wider range of payment options, including JCB and UnionPay. One notable downside is its lack of a virtual terminal, limiting phone payments.
Square stands out for its comprehensive software solutions, offering more flexibility and integration options through its App Marketplace. PayPal POS also integrates well with major platforms but Square’s native ecommerce features add significant value for businesses looking to expand online.
Security-wise, both ensure customer data protection through PCI compliance and encryption. Customer support is comparable, offering essential services without 24/7 availability.
In terms of costs, Square’s card reader and transaction fees are lower, especially for online transactions, providing a cost-effective solution for businesses prioritizing budget and flexibility. While both are scalable, high-volume businesses might find better rates elsewhere.
Ultimately, Square slightly edges out with its affordability, comprehensive features, and flexibility.
| Square | PayPal POS | |
|---|---|---|
| Accepted Payments | Visa, Mastercard, American Express, Maestro, Visa Electron, Vpay, Apple Pay, Samsung Pay, Google Pay, digital gift cards. | Visa, Mastercard, American Express, Visa Electron Diners Club, JCB, Discover, Apple Pay, Samsung Pay, Google Pay, gift cards |
| Tap to Pay | ✅ | ✅ |
| Transfers | Next business day as standard or instantly for 1% fee | Funds arrive in PayPal Business accounts within minutes. Bank transfers within 1-2 business days of transaction date + bank processing time. |
| Additional Features | Checkout customisation, eCommerce support, inventory management, order management and reporting | Checkout customisation, eCommerce support, inventory management, staff management, reporting |
| Add Ons | Appointments, KDS, loyalty, invoices, physical gift cards, marketing and team management | ❌ |
| Specialised Software | For Retail and Restaurants | ❌ |
Square vs PayPal POS: Cost
| Square | PayPal POS | |
|---|---|---|
| POS Fee | £0 | £0 |
| Add Ons | Appointments £0-£69/mo, KDS £15+/device, Loyalty £25-£65/mo, Invoices £0-£20/mo, Gift Cards 52p+/card, Marketing £9-£29/mo, Team Mgmt £0-£20/location | N/A |
| In-person Transaction Rate | 1.75% | 1.75% |
| Online Payment Transaction Rate UK Cards | UK Cards – 1.4% + 25p Non-UK Cards – 2.5% + 25p | Payment Links – 2.5% Other Methods – 1.75% |
| Manually Keyed-In Transaction Rate | 2.5% | ❌ |
| Refunds | £0 | £0 |
| Chargebacks | £0 | Free up to £250 per month |
| Bespoke Rates | For card turnovers £200,000+ | For card turnovers £10,000+ |
Is Square or PayPal POS Cheaper?
Square generally offers better value for most businesses, but PayPal POS could be cheaper under certain conditions.
Both have a 1.75% in-person transaction fee, but Square’s online transaction fee is lower at 1.4% for UK cards, making it more affordable for domestic online sales. However, PayPal POS’s 1.7% rate for international payments is more economical for businesses dealing heavily in overseas transactions.
PayPal POS also provides bespoke rates for businesses with an annual card turnover as low as £10,000, compared to Square’s £200,000 threshold for custom pricing. While Square requires additional payments for premium features like loyalty schemes and advanced team management, PayPal POS includes staff management without extra costs or advanced add-ons.
Both don’t charge for refunds or chargebacks, but PayPal POS offers limited chargeback protection up to £250 monthly, a potential downside for high-volume businesses.
In summary, Square is more cost-effective for Overall. For those with moderate international sales or processing between £10,000 and £200,000 yearly, PayPal POS may offer better financial benefits.
Square vs PayPal POS: Hardware
| Hardware | Square | PayPal POS |
|---|---|---|
| Register | £599 + VAT | ❌ |
| Terminal | £149 + VAT | From £149 + VAT |
| Card Reader | £19 + VAT | From £59 + VAT |
| Kits | From £339 + VAT | From £189 + VAT |
Square offers a wider range of hardware options suitable for various business setups, including a comprehensive Register perfect for large scale retail and hospitality, offering a blend of POS and payment systems that’s easy to set up.
For mobility, both Square and PayPal POS have similarly priced all-in-one POS terminals (£149 + VAT), but Square’s Terminal features Wi-Fi and Offline Mode for uninterrupted transactions, while PayPal POS’s terminal is designed for mobile use with included 3G/4G data.
Square’s card reader is also more affordable and pairs with a broader range of compatible accessories like scales and kitchen display systems, compared to PayPal POS’s more limited and pricier hardware choices.
Despite PayPal POS’s lower-priced bundled kits, Square’s extensive hardware options and accessories make it a more versatile choice for diverse business needs.
Get 25% off Square Reader or Terminal with code SEP2025 until 25/10/2025*. T&C’s apply.
Square vs PayPal POS: Integrations
| Type of Integration | Square | PayPal POS |
|---|---|---|
| Accounting | Xero, Quickbooks, Sage and more. | ANNA, QuickBooks and Xero |
| Booking & Scheduling | Wix Bookings, GoDaddy Appointments, Booxi, Planday and more. | ❌ |
| Delivery & Orders | Deliverect, Otter, TapTable, Mr Yum and more. | Vita Mojo |
| eCommerce, | WooCommerce, Ecwid, BigCommerce, Magento and more. | Adobe Commerce, BigCommerce, Shopify, WooCommerce and more. |
| Inventory | Thrive Inventory, DEAR Systems, Yellow Dog Inventory and more. | ❌ |
| Loyalty & Rewards | Gift Up!, TapMango, Digital Loyalty and more. | ❌ |
| Marketing | Mailchimp, Local Inventory on Google, Trustpilot Reviews, LiveChat and more. | ❌ |
| POS | TouchBistro, Goodtill, Shopwave, Magestore and Rentrax. | Goodtill, Hike, Lightspeed, Timely, Vend and more. |
| Team Management | Deputy and Staffology Payroll. | Tanda and Timely |
Best for Integrations: Square
Square offers far more 3rd party integrations than PayPal POS, making it a better choice if you want the convenience of managing your whole business from a single platform.
From delivery through Mr Yum to marketing with Mailchimp, Square offers an impressive range of integrations that allow you to expand your payment system and transform it into an all-in-one solution.
While PayPal POS offers some integrations with popular 3rd party software such as Xero, Shopify and Lightspeed, it doesn’t have the same range as Square, including no scheduling, inventory, loyalty or marketing integrations.
Unless you need to integrate your payment system with Lightspeed or Shopify, Square is the more convenient choice.
Square Vs PayPal POS Reviews
Square has a higher Trustpilot rating than PayPal POS with an average rating of 3.0, and 79% of reviewers rating it 5 out of 5.
Many customers have commented on Square’s “straightforward” set-up, “user-friendly” interface and “prompt” payment transfers. However, there have also been issues with customer service responsiveness and delayed fund transfers.
PayPal POS’s customers have given it an “average” score of 2.9, with only 59% rating it 5 out of 5. Some customers were “disappointed” with their service, commenting on issues with terminals, warranty problems and “high costs”.
However, others had a more positive experience, with “excellent” and “helpful” customer service”.
Square vs PayPal POS: Security Measures
| Platform | Square | PayPal POS |
|---|---|---|
| PCI Compliance | ✅ | ✅ |
| Data Encryption | All card-present payments are encrypted from end to end. | Card data is encrypted by HSMs cryptographic servers |
| Fraud Protection | 2-step verification for online credit and debit card payments. Machine learning adjusts an algorithm to forecast fraud trends.Fraud team will contact you about suspicious activity. | 24/7 fraud monitoring, with accounts linked to suspicious activity being terminated and blocked. |
| Hardware & Software | 2-step account verification. Control employee permissions. | PCI PTS 4.1 tamperproof design means card readers will self-destruct if someone tries to interfere with it. |
| Disputes | No fee for chargebacksDedicated team for queries.Manage disputes from the Disputes Dashboard. Square will communicate with the bank and inform you of what needs to be done. | Transaction protection covers up to £250 in eligible monthly chargebacks, not including manual card entry. |
Square surpasses PayPal POS in security features, offering more sophisticated protection. Both are PCI DSS compliant and encrypt customer data. Square differentiates itself with a proactive approach to fraud, including direct contact in case of suspicious activity and employing machine learning for improved fraud detection. Additionally, Square’s card readers feature a tamper-proof design that self-destructs if tampered with.
Square enables dispute management directly through its platform, handling bank communications and not charging for chargebacks, offering significant administrative savings. PayPal POS provides Transaction Protection for chargebacks up to £250 per month, excluding manual card entries.
Square vs PayPal POS: Customer Support
| Platform | Square | PayPal POS |
|---|---|---|
| Telephone Support | Monday to Friday, 9 am to 5 pm | Monday to Friday, 9 am to 5 pm |
| Email Support | Yes. Estimated response time is 24 – 48 hours | Yes. Estimated response time is 24 business hours |
| Messaging | Available through the Square website, app, and social media channels. | Available through the PayPal POS website, Monday to Friday, 9 am to 5 pm. |
| Resources | Support Centre with guides, articles, and tipsQuick Support resources built into the POS app, Square Terminal, and Square Register. Seller Community to connect with other customers | Help Centre with easy-to-follow articles. |
Square and PayPal POS offer similar customer support, with Square offering a slightly more comprehensive service.
Square and PayPal POS offer telephone support between Monday and Friday, 9 am and 5 pm.
They also both provide one-to-one email assistance, with Square’s average response time faster than PayPal POS’s.
Although both customer service teams offer messaging services through their websites, Square customers can also reach them via the Square app and social media channels.
Similarly, Square and PayPal POS provide customer resources for general queries and simple troubleshooting.
Whilst PayPal POS only has a Help Centre with easy-to-follow articles, Square offers a Support Centre, Quick Support resources built into the POS app and hardware, and a Seller Community that connects you to other businesses that use Square.
Overall, Square offers customers more ways to contact the customer support team and is the best for customer support.
Alternatives to Square and PayPal POS
| Company | Price | My Rating | Trustpilot Rating | Learn More |
|---|---|---|---|---|
| Square | £ | ⭐⭐⭐⭐ (4) | ⭐⭐⭐⭐(4.2) | Visit Square |
| PayPal POS | £ | ⭐⭐⭐ (3) | ⭐⭐⭐(2.9) | Visit PayPal POS |
| YumaPos | ££ | ⭐⭐⭐⭐ (4) | ⭐⭐⭐⭐(4.4) | Visit YumaPOS |
| Lightspeed | £££££ | ⭐⭐⭐⭐ (4) | ⭐⭐⭐⭐⭐(4.5) | Visit Lightspeed Restaurant or Lightspeed Retail |
| Epos Now | ££££ | ⭐⭐⭐⭐ (3.5) | ⭐⭐⭐(4.3) | Visit Epos Now |
| Shopify | ££ | ⭐⭐⭐ (3) | ⭐(1.2) | Visit Shopify |
| Takepayments | £££ | ⭐⭐⭐ (2.5) | ⭐⭐⭐⭐⭐(4.9) | Visit Takepayments |
| SumUp | £££ | ⭐⭐ (2) | ⭐⭐⭐⭐(4.2) | Visit SumUp |
FAQs
Can you use PayPal POS with Square?
No, PayPal POS and Square are separate payment processing systems and are not designed to be integrated or used together as they are competitors in the payment processing industry.
What are the contract terms for Square and PayPal POS?
Square and PayPal POS both offer flexible contract terms without long-term commitments or cancellation fees. They operate on a pay-as-you-go basis, allowing businesses to use their services without being tied to lengthy contracts.
How long does it take to set up an account with Square or PayPal POS?
It usually only takes a few minutes to complete the initial online application process. After providing basic business information, you may need to verify your identity and business details, which can vary depending on the platform’s verification procedures. Once your account is approved, you can start using the Square or PayPal POS services immediately,
What is the difference between Square terminal and PayPal POS terminal?
Square is more affordable and features an offline mode for transactions without internet. The Square Reader is also lighter and more compact than the PayPal Reader, which is larger and heavier but offers a robust design with a physical keypad that some customers might prefer for entering PIN numbers.
