Stripe vs. Square: Which One is Best for Your Business (Review)

Stripe vs. Square: Which One is Best for Your Business (Review)

Arif Chowdhury
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Last Updated on December 20, 2022 by Arif Chowdhury

The developer-friendly payment infrastructure presented by Stripe provides consumers with more payment choices than Square. However, there is a debate about which is better, Stripe vs. Square.

If you want to start an eCommerce business, you may make payments in person by using Square. Stripe transaction cost is 2.7% plus $0.10 per payment for in-person transactions, whereas Square is 2.6% plus $0.10 per payment. The fees Square and Stripe charge for online payments are a bit more, 2.9% plus $0.30 per payment.

Since Stripe and Square are two of the most well-known merchant services providers accessible today, business owners often question what differentiates them and which is best for their company.

Stripe and Square are similar in that they combine all of their clients into a single big account, but their services may differ regarding payment service providers.

You must understand the differences between Stripe and Square before choosing the best payment option for your company.

In this guide, we will demonstrate to you a detailed comparison between these two popular payment processors.

Stripe vs. Square: Which one is best suited for you?

Is it better to use Stripe or Square? Let’s find out.

Point-of-sale processing cost2.6% + $0.102.7% + $0.10
Online transaction costStarting at 2.9% + $0.30Starting at 2.9% + $0.30
Device best suitable forBetter for brick-and-mortar businessesBetter for online businesses
Application best suited forBest for brick-and-mortar businessesBetter for online businesses
Easy to useYesNo
Other payment optionsNoYes

Payment options.

Stripe payment option.

If you’ve ever purchased from an eCommerce store, you may have used the Stripe payment platform for that transaction yet; you may not know. And that’s the magic of Stripe.

With a white-label payment provider, you may use the checkout method you want while still using your company’s brand identity. They’re an excellent alternative.

Is it better to use Stripe or Square? Stripe is a powerful online payment processor for your e-commerce business.

Stripe terminals, a portable point of sale (POS) hardware that customers can use to pay from a debit/credit card, may also be used for in-person payments. Readers for cards start at $59 and become more expensive as you go.

If you’re using Stripe, accepting online payments is a cinch.

Quick Note: Nowadays, many small businesses have online stores. However, one of the primary issues they face is appropriate payment gateways for their customers. So, customers can pay using their credit or debit card through virtual terminals. In that case, opening a merchant account on Stripe or square account and using their service would be a possible solution to their problem.

Recommended Reading: Which Is the Best E-commerce Platform for Beginners? Top 10 Reviewed

Square payment option.

In 2009, Square introduced its iPad POS system, and the game as we knew it forever altered it. There’s a high possibility that you paid with their application if you purchase from a small company.

The Stripe vs. Square debate has worsened for company owners since Square launched its online payment system in 2016.

Setup options: flexible or complex?

Stripe setup options.

Stripe checkout setup on your company’s website may be easy or complex, depending on the needs of your payment provider.

If you don’t have access to a tech expert, you may integrate the Stripe checkout by copying and pasting a JavaScript code into your business website.

Insert javascript code and customize your payment process is easy.

If you develop your website structure and settings, you may use their UI toolkit to customize your checkout options for your client. It is known as Stripe Elements.

It’s much easier to integrate Stripe into a WordPress e-commerce site if you’re using the open-source plugins from Stripe.

Quick Note: If you use Shopify or WordPress, you won’t have to worry about coding; both have the excellent features of thousands of plugins with a one-click setup.

Square setup options.

In contrast to Stripe, Square Payments does not rely on developer resources.

Square’s eCommerce plugins, for example, take advantage of Stripe’s technology. So even while their developer documentation isn’t as comprehensive as Stripe’s, their payment options can be embedded in your site checkout area. They also provide a customizable online payment API.

Stripe vs. Square, which is better? However, square offers both hosted and embedded payment options for your audiences.

However, Square’s deal includes its Weebly service as an advantage. After acquiring Weebly in the first quarter of 2018, Square makes it simpler for its clients to start an online shop.

Either Square Online or Weebly may let you build an eCommerce website with a built-in Square payment option from the exact location.

Unique features of both processors.

Stripe features.

Stripe’s capacity to take almost any form of payment is one of its most significant advantages. As a result, clients that want a specific payment method are highly likely to get it if you use the Stripe payment option.

Pay options range from traditional bank transfers to Discover and Microsoft Pay cards.

Stripe Sigma provides built-in reporting as well as client reports. It also provides its clients with accounting tools like QuickBooks and other features of built-in tax calculation.

What features make Stripe unique:

Billing: Ask customers to pay their personalized bills by sending them invoices. They have the option to set up recurring payments, tier-based payments, offer-based payments, and scheduled payments.

There are various payment methods you can offer your clients.

Customization: With the Stripe Sources API, companies may accept payments from various sources, however, with only one integration.

Payment options such as Alipay and Bancontact can also accept this integration. You may also customize your payment section using the APIs provided by Stripe.js.

The marketplace connects a powerful integration of payment that joins your store to the market.

Stripe Atlas: You can connect your eCommerce store to the United States marketplace.

Mobile purchase: use API to give access to purchase from mobile.

Recommended Reading: 9 Factors that Influence Consumer Purchasing Decisions (Definitive Guide)

Square features.

Quick deposit, reporting capabilities, and PCI compliance are features of Square in-person payments that also apply to Square online payments.

If you set up your online shop with Square Online and take payments with Square, you’ll get even more benefits.

All Premium subscriptions come with a well-known mobile app for reporting on the backend and one year of free usage of a custom-designed URL. You’ll also get access to inventory management options, detailed monitoring and reporting options, and marketing tools.

Square, on the other hand, offers POS software. Regarding point-of-sale (POS) software, Square has free and premium options for restaurants and retailers.

When using Square POS, you may keep track of products and workers and provide consumers with lucrative offers as incentives and email notifications upon purchase.

Transaction cost and other fees.

Stripe transaction fees.

You must pay 2.9% and an additional $0.30 flat fee for each credit card transaction when using the Stripe payment platform on your company’s website. In addition, a cost of 2.7% and a $0.05 additional flat fee per transaction is charged for in-person card processing.

Stripe payment transaction fees.

An extra 1% processing charge is required for payments made using an international credit card in addition to the usual 3.9% and 2.79%.

Stripe is a pay-per-use service. Therefore there are no ongoing costs. In addition, accepting mobile payments, such as Apple Pay and Google Pay, has no extra charges. It also accepts VISA and Master Cards, including American Express.

You will be charged an additional $15 fee as a disputed payment on top of the original price if you get a chargeback.

Quick Note: If you want to succeed in the eCommerce business, focus on two vital things. First – the payment process must have to be flexible and secure. Second – shipment must have to quickly as possible, typically within 2-3 business days.

Square transaction fees.

Payment processing costs with Square are just 2.9% of the total purchase price and an additional $0.30 per transaction.

Regular online transaction cost is same as Stripe.

It isn’t the first time you’ve heard about it. For example, square and Stripe charge the same fees to process online payments.

To utilize Square to create an eCommerce site, you may have to pay a monthly charge to upgrade to a premium plan with additional features.

POS transaction cost is less expensive with the Square payment process.

Square is less expensive than Stripe when accepting cash payments in person. However, an additional 2.6% and $0.10 fixed fee will be charged to each transaction as a processing fee.

What benefits will you receive?

Let’s look at the benefits of each payment processor when comparing Stripe and Square.

Stripe offers below benefits:

Developer-accessible application.

Stripe’s developer documentation, accessible on their website, shows a payment processor for tech-savvy company owners.

For companies with at least one in-house developer, Stripe is the payment processing platform of choice.

One of the most remarkable aspects is their proprietary UI toolkit, which many well-known companies use.

In-app purchases are also supported by Stripe’s payment infrastructure, allowing app developers to create a unique checkout experience inside their app.

Flexible in the various payment processors.

Based on these two payment processors, Stripe comes out on top since it gives your consumers more payment choices.

Stripe accepts payments from all major credit cards as well as mobile wallets. So expect Stripe payments to be handled if your client uses it.

By offering a variety of payment methods, you’ll see a substantial increase in conversion rates. Allowing consumers to pay what they want encourages them to complete a transaction.

Recommended Reading: How to Pitch a Business Idea in 5 Minutes? (Practical Guide)

Square offers below benefits:

There are benefits for small companies and their requirements with Square. Its online payment process may be a better match if you want to grow your brick-and-mortar company by establishing an eCommerce shop.

As Square may be utilized by companies that sell both in-person and online, such businesses will find it easier to accept online payments.

Examine the areas where Square outlast its rival Stripe, as stated below:

Build a ready-made eCommerce shop.

When it comes to small eCommerce, Square Online could be your best bet.

Build an eCommerce site for a $0 monthly fee with Square.

Using a ready-made eCommerce template and getting your business up and running fast. Also, you won’t need to hire a professional developer. Premium membership includes one year of free custom domain usage.

Flexible point of the sales option.

Finally, when it comes to in-person payment options, Square outperforms Stripe. When comparing both, Square is likely to win if you conduct most business transactions physically from a brick-and-mortar store.

A free card reader using a mobile device is included with your Square account when registering. In addition, many square POS hardware configurations are still available.

Several POS options for you to check out:

  • The Square Register is head and shoulders above the competition regarding the Point of Sale hardware. There are other options for you, such as magnetic stripe cards and chip cards for making payments.
  • The Square Terminal, Square’s all-in-one POS device, is the company’s most petite and flexible option. There are USB, Ethernet, and WiFi connection options in addition to Square Register’s acceptance of all payment methods.
  • The Square Stand is a simple iPad specialization that does what it says in the description. After downloading the Square POS software and connecting the accompanying hardware, you may use the iPad device as a point-of-sale system for your company.
  • Among other features, a mobile magstripe, chip card reader, and contactless payment scanner are all available from Square. In addition, magstripe card readers are included in the membership package as a convenience for members.

Square’s website offers everything you’ll need to take Square payments in person, including the Square reader.

Both Stripe and Square payment gateway has excellent customer support 24/7.


Stripe and Square are excellent and flexible for online and offline payment transactions. However, it is up to you to decide which one you will use for your business. I have shown you a detailed insight into both of these processors.