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Stripe vs. PayPal vs. Square: Which Is Right for Your Business?

To choose between Stripe, PayPal and Square, consider your business's industry and whether it operates mostly online.

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Updated · 1 min read
Hillary Crawford
Written by 
Lead Writer & Content Strategist
Ryan Lane
Edited by 
Managing Editor
Tina Orem
Co-written by 
Editor & Content Strategist
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Stripe, PayPal and Square are payment service providers, or PSPs, that help small businesses accept payments in person and online.
Stripe is best for creating customized online checkout flows. PayPal is better for offering a variety of alternative payment methods. If you own a cafe, restaurant or retail shop, though, Square is likely your best bet.
Here's how these three companies stack up. For more comparisons, see our breakdowns of Stripe vs. Paypal and Stripe vs. Square.

Stripe pros and cons at a glance

Pros

Highly customizable online checkout options.

No termination fees or long-term contracts.

24/7 chat support.

Can process transactions in more than 135 currencies.

No PCI compliance fees.

Cons

Doesn’t sell full countertop POS setups; hardware is limited to handheld terminals and card readers.

Deposits can take up to two business days.

No phone or email support.

» MORE: Read our full Stripe review

PayPal pros and cons at a glance

Pros

One of the most commonly used payment processing platforms.

Easy to use and integrate with website hosts and shopping carts.

Transparent fixed fees in 25 currencies.

No PCI compliance fees.

Cons

PayPal’s offerings are vast and can be difficult to grasp quickly.

Deposits may take up to 3 days.

» MORE: Read our full PayPal review

Square pros and cons at a glance

Pros

Offers a free mobile card reader and free POS software plan.

Can subscribe to related services, such as payroll, that integrate with its POS system.

No termination fees or long-term contracts.

No chargeback or PCI compliance fees.

Cons

Complex businesses might prefer a processor that integrates with more specialized POS systems.

Free plan processing rates are more expensive than competitors.

» MORE: Read our full Square review

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Pricing comparison: Stripe vs. PayPal vs. Square

Use the table below to compare these payment processing companies' monthly costs and transaction fees.
Monthly fees
Stripe
  • $0 for standard services.
PayPal
  • $0 for standard service.
Optional add-ons:
  • $5 for PayPal Payments Advanced.
  • $10 for Advanced Fraud Protection service, buyer authentication service or recurring billing service.
  • $19.95 for account monitoring service.
  • $30 for Payments Pro, Payments Pro Payflow or recurring payment tool.
Square
  • $0 for Square Free plan.
  • $49 for Square Plus plan.
  • $149 for Square Premium plans.
Transaction fees
Stripe
  • 2.7% plus 5 cents for in-person transactions.
  • 2.9% plus 30 cents for online transactions.
  • 3.4% plus 30 cents for manually keyed transactions.
  • 4.4% plus 30 cents for international card transactions.
PayPal
  • 2.29% plus 9 cents for in-person card payments and QR code transactions.
  • 2.89% plus 29 cents for online card payments through PayPal Expanded Checkout.
  • 2.99% plus 49 cents for online card payments through PayPal Checkout.
  • 3.49% plus 9 cents for manual-entry card transactions.
  • 3.49% plus 49 cents for PayPal and Venmo payments.
  • 3.39% plus 29 cents per virtual terminal transaction. 
Square
  • 2.6% plus 15 cents for in-person transactions with Free plan.
  • 3.3% plus 30 cents for online transactions with Free plan.
  • 2.5% plus 15 cents for in-person transactions with Plus plan.
  • 2.4% plus 15 cents for in-person transaction with Premium plan.
  • 2.9% plus 30 cents for online transactions with Plus and Premium plans.
  • 3.5% plus 15 cents for manually keyed transactions.

Where Stripe stands out

Online checkout customization

Looking for a low-lift way to start accepting payments online? You might try embedding Stripe's pre-built checkout module on your website. Or, if you have developer experience, you can create your own custom checkout flow. This can help keep your branding consistent.
Stripe is ideal for online retailers and service-based businesses alike. But know that you typically need to have an existing e-commerce site. The company's services work with platforms like BigCommerce and WooCommerce.

Global payments

Stripe supports global transactions and can process over 135 currencies. It supports multiple languages as well (e.g., Chinese, Spanish, French, Dutch, Italian). This can be valuable for small online businesses that want to expand overseas.
» MORE: Stripe fees

Where PayPal stands out

Accepting alternative payment methods

Unlike Stripe and Square, PayPal allows you to accept PayPal payments. Customers often trust the PayPal brand due to its ubiquity. If offering that payment method is important to you, using PayPal to process payments makes sense. It also lets customers pay with Venmo or opt for buy now, pay later options.
Just know that accepting PayPal payments is expensive at 3.49% plus 49 cents per transaction.

Low in-person payment processing rates

If you use PayPal POS to accept card payments in-person, you'll get access to some of the lowest flat rates out there. It charges 2.29% plus 9 cents per transaction. Square's free plan, in comparison, charges 2.6% plus 15 cents.
PayPal's POS plan is also free. And it includes a variety of features, like inventory tracking, customer management and reporting.
» MORE: PayPal fees

Where Square stands out

Industry-specific features

Unlike Stripe and PayPal, Square has plans specifically tailored to retailers and restaurants. The mid-tier Plus plan for restaurants, for example, includes custom floor plans, item availability tools, tip pooling and the ability to preauthorize bar tabs. On the retail end, you'll find inventory tracking, barcode label printing and abandoned cart emails.
Square also lets you manage and schedule your employees. This is important for brick-and-mortar businesses in particular.

Hardware options for brick-and-mortar businesses

Square's reasonably priced POS hardware is another plus for businesses with a physical location. And Square has a better selection than both PayPal and Stripe. The company has everything from a free mobile card reader to a full countertop POS register with a customer-facing screen for tipping. There are also handheld options, like the Square Terminal.
» MORE: Square fees
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Methodology
NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Our editorial team reviews information on a regular basis for consistency and accuracy.
We also periodically update our scoring system to reflect changing industry norms and business needs. For instance, in 2026, we stopped factoring in whether mobile apps work for both Android and iOS smartphones. If an accounting software product has its own mobile app, it’s almost always available for both operating systems.
NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. Learn more about how we rate small-business accounting software.
These ratings are meant to provide clarity in the decision-making process, but what’s best for your business will depend on its size, growth trajectory and which features you need most. We encourage you to research and compare multiple accounting software products before choosing one.
NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
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Square
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on Square's website

Best Payment Processing Companies

Product Payment processing fees Monthly fee

Square

Nerdwallet Rating

5.0
Learn more

on Square's website

2.6% + 15¢ 

in-person; 3.3% + 30¢ online.

$0 

for Free plan; $49 Plus plan; $149 Premium plan.

Helcim

Nerdwallet Rating

5.0
Learn more

on Helcim's website

0.40% + 8¢ 

plus interchange, in-person; 0.50% + 25¢ plus interchange, online.

$0 

Stripe Payments

Nerdwallet Rating

5.0
Learn more

on Stripe's website

2.7% + 5¢ 

in-person; 2.9% + 30¢ online.

$0 

Shopify POS

Nerdwallet Rating

5.0
Learn more

on Shopify's website

2.6% + 10¢ 

in-person; 2.9% + 30¢ online (Basic plan).

$39 

and up for e-commerce plans; Can upgrade to POS Pro for an extra $89.
Compare more payment processors
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