Square vs Stripe
Why people compare these: Most common comparison for small businesses and startups deciding between simple all-in-one (Square) vs developer-focused platform (Stripe)
The real trade-off: Integrated POS hardware/software simplicity vs API flexibility and feature depth
Common mistake: Choosing Square for online/API needs or Stripe for in-person retail without realizing target market mismatch
At-a-glance comparison
Square ↗
Square is an all-in-one commerce platform for small to medium businesses, combining payment processing with point-of-sale hardware, business management tools, and financial services. Known for…
- ✓ Free tier with basic payment processing and POS - no monthly fees
- ✓ Competitive in-person rate (~2.6% + 10¢) for card-present transactions
- ✓ All-in-one solution combining payments, POS, inventory, and employee management
Stripe ↗
Stripe is a developer-first payments platform offering comprehensive payment processing, billing automation, fraud prevention, and financial tools. Known for best-in-class developer experience with…
- ✓ Industry-leading developer experience with extensive APIs and SDKs
- ✓ Transparent, pay-as-you-go pricing with no setup or monthly fees
- ✓ Comprehensive fraud prevention with machine learning (Radar)
Where each product pulls ahead
These are the distinctive advantages that matter most in this comparison.
Square advantages
- ✓ Integrated POS hardware and software from single vendor
- ✓ Lower in-person rate (2.6% + 10¢ vs 2.9% + 30¢)
- ✓ All-in-one with inventory and employee management
Stripe advantages
- ✓ Best-in-class APIs and developer documentation
- ✓ Rich ecosystem (Billing, Connect, Terminal, Issuing)
- ✓ Designed for online payments and technical teams
Pros & Cons
Square
Pros
- + You run retail store or restaurant with in-person transactions
- + You need integrated POS, inventory, and employee management
- + You have limited technical resources (no-code/low-code preferred)
- + You want hardware and software from single vendor
- + You prioritize simplicity over customization
Cons
- − Manually keyed transactions expensive at 3.5% + 15¢ (vs 2.6% + 10¢ in-person)
- − Online/card-not-present at ~2.9% + 30¢ is standard market rate, not competitive
- − Advanced features locked behind monthly subscription fees
- − Additional software modules (payroll, marketing, appointments) add recurring costs
- − Hardware purchases required for in-person acceptance ($49-$299+)
- − Multi-location businesses pushed to higher-tier subscriptions
- − Custom pricing only for high-volume merchants - SMBs pay full rate
Stripe
Pros
- + You primarily accept online/card-not-present payments
- + You need advanced APIs and custom integrations
- + You require subscription billing automation
- + You are building marketplace or platform
- + Your team has technical capabilities to leverage APIs
Cons
- − International cards add 1.5% surcharge making global scaling expensive
- − Currency conversion adds another 1% on top of base rates
- − Manually keyed transactions penalized with extra 0.5%
- − Buy Now Pay Later options jump dramatically to 5.99% + 30¢
- − Add-on products (Radar for Fraud Teams, custom domains) increase costs
- − Chargeback and dispute fees ($15-$29) can accumulate for high-risk businesses
- − Enterprise pricing (IC+) requires significant volume commitment
Which one tends to fit which buyer?
These are conditional guidelines only — not rankings. Your specific situation determines fit.
- → Pick Square if: You run retail store, restaurant, or in-person business; need integrated POS hardware; or prefer all-in-one simplicity
- → Pick Stripe if: You primarily process online payments, need advanced APIs, require subscription billing, or are building marketplace/platform
- → Square targets SMB brick-and-mortar; Stripe targets online businesses and developers
- → The choice is straightforward: in-person retail → Square; online/API needs → Stripe