Impacted by the Square outage on September 7th and 8th? You’re not alone – it affected small businesses across the country.
Square Competitors for POS & Credit Card Processing in 2023
This article is part of a larger series on POS Systems.
If you’re thinking of switching from Square, or just want to see what your options are before committing, you’re in the right place.
Square is a free point-of-sale (POS) system and payment processor many small businesses use as an affordable, all-in-one solution. However, depending on your business, you may find better functionality (and reliability) at a similar price point using an alternative.
The best Square competitors are:
- Clover: Best Square alternative for low-cost, industry-specific POS
- PayPal Zettle: Best POS for PayPal users
- Helcim: Best low-cost payment processing for growing sales
- Stripe: Best for online payment processing
- SumUp: Best for occasional sellers or low-ticket sales
- Lightspeed: Best Square alternative for inventory management
- Shopify: Best Square competitor for ecommerce
- Toast: Best alternative for restaurants that have outgrown Square’s features
In the News: Square Outage
Around 3pm ET on Thursday, September 7th, Square experienced an outage that left merchants “unable to access accounts or process credit card payments.” The outage continued until around midday on Friday.
Business owners using Square say they were unable to get ahold of Square for support during this time. Missing nearly a day’s worth of sales, especially on a typically busy day like Thursday, is detrimental to any business. So, some companies using Square may be looking into alternatives.
Top Square Competitors Compared
Monthly Fee | Online Processing Fee | In-Person Processing Fee | Mobile Card Reader | Best Used For | |
|---|---|---|---|---|---|
 | $0–$60 | 2.9% + 30 cents | 2.6% + 10 cents |  $49 for chip and tap | Small retail, restaurants, and professional services |
 | $0 to $74.95 | 3.5% plus 10 cents | 2.3% plus 10 cents to 2.6% plus 10 cents |  $49 | Small retail, restaurants, and professional services |
 | $0 to $30 | 2.59% plus 49 cents | 2.29% plus 9 cents |  $79 ($29 first reader) | PayPal Business merchants with a storefront |
 | $0 | Interchange plus 0.2% to 0.5% plus 10 cents to 25 cents | Interchange plus 0.1% to 0.3% plus 5 cents to 8 cents |  $109 | Established businesses and B2Bs |
 | $0–$10 | 2.9% plus 30 cents | Starts at 2.7% plus 5 cents |  $59 | Businesses needing custom online checkouts |
 | $0 | 2.9% plus 15 cents to 3.25% plus 15 cents | 2.75% |  $39 | Seasonal retail and restaurants |
 | $69–$399 | 2.6% plus 30 cents | 2.6% plus 10 cents |  Contact Lightspeed | Businesses with large inventory |
 | $0–$89 + $39–$399 (Ecommerce account) | 2.4% plus 30 cents to 2.9% plus 30 cents | 2.4% to 2.7% |  $49 | Ecommerce businesses |
 | $0–$165 | 2.99% + 15 cents–3.5% + 15 cents | 2.49% + 15 cents–2.99% + 15 cents |  $0–$799 | Small, full-service restaurants |
*Based on Fiserv rates
Top Reasons to Look for a Square Alternative
- Compatibility: Square does not work with high-risk merchants or certain restricted product sales.
- Stability: Though widespread outages are rare, it is more common for individual Square accounts to be frozen.
- Customer support: IT can be difficult to reach Square’s live support, and when you do, the quality of support can vary.
- Greater customization: Square doesn’t offer a lot of customization options with its interface or features.
That said, Square is still our top pick.
Square’s transparent prices, low or no monthly fees, its full ecosystem of tools, and user-friendly software make it our top-recommended solution for small businesses. Check out our guides to the best POS systems and best merchant services to learn more.
Clover: Best Square Alternative for Fully Integrated, Industry-specific POS
Pros
- Affordable payment processing rates
- Advanced business management tools
- Customer loyalty program
Cons
- Monthly fee
- Tied to the Clover ecosystem
- Hardware is costly
How it Compares to Square
- Square offers a free plan while Clover’s subscription starts at $14.95.
- Both systems offer solid retail and checkout tools.
- Both Square and Clover offer proprietary hardware.
- Clover works with most payment processors while Square users are limited to its built-in payments processing.
- Both systems allow for multiple integrations with delivery platforms.
Clover is a top Square alternative because it offers a lot of the same features and benefits. It features an advanced and all-in-one POS and payment processor, plus customer loyalty programs, employee scheduling, and proprietary hardware. We also highly recommend Clover if you want a Square alternative for affordable iOS-based credit card readers with payment apps.
Use Clover if you want to keep your current merchant account while upgrading Clover’s system. Unlike Square software, which only works with Square Payments, Clover can be purchased through many different merchant account providers. However, it does come with a monthly fee that businesses should keep in mind when budget planning.
- Monthly software fee: $0–$74.95
- Payment processing: Depends on payment processor
- Fiserv rates:
-
- In person: 2.3% to 2.6% plus 10 cents
- Keyed-in and online/virtual terminal: 2.9% plus 30 cents to 3.5% plus 10 cents
- Hardware: $49 to $1,799
Learn more about fees in our guide to Clover pricing.
Like Square, Clover is cloud-based and offers everything that a standard POS does, including payment processing, inventory management, and analytics reporting. It also has advanced customer loyalty, order management, and employee scheduling features, which are more comprehensive and integrated than Square’s.
Other features include:
- Credit card preauthorization
- Next-day deposits
- Offline payment processing
- Customer profiles and promotions
- User permissions
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Clover Go | Clover Flex | Clover Mini | Station Solo | Station Duo |
PayPal Zettle: Best Square Competitor for PayPal Users With Storefronts
Pros
- Trusted payment processor
- Predictable flat processing rates
- Free POS, no long-term contract
Cons
- Limited POS features
- No offline mode
- Inexplicably frozen funds
How It Compares to Square
- Zettle lets merchants accept PayPal payments in-store at no extra cost.
- Both systems offer affordable mobile card readers, although only Square includes free hardware.
- Both systems offer a free mobile POS app, but Square is more robust.
- Payment processing fees for PayPal Zettle generally are cheaper compared to Square.
- Zettle mobile card reader can process chip and contactless payments but does not support offline mode like Square.
Did you know?
PayPal payments are now accepted at physical shops like Walmart, Best Buy, and Home Depot. But you don’t have to be a big name or have deep pockets to start accepting PayPal in your store. All you need is a free PayPal Business account.
Zettle uses PayPal for its payment processing and provides a POS system for tablets or mobile. Startups can get a PIN pad card reader and begin accepting payments immediately or purchase an entire POS system. The software is free to use, with affordable processing rates, and allows you to accept PayPal payment options in-store. If customers often ask if you accept PayPal at checkout, then PayPal Zettle is your best alternative to Square.
Use PayPal Zettle to set up a storefront for your online business that runs on PayPal. PayPal payments are now accepted at physical shops like Walmart, Best Buy, and Home Depot. But you don’t have to be a big name or have deep pockets to start accepting PayPal in your store—all you need is a free PayPal Business account. Learn more about POS systems.
- Monthly software fee: $0–$30
- Payment processing:
- In-person: 2.29% to 3.46% plus 9 cents
- Online: 2.59% to 3.09% plus 49 cents
- Hardware: $79 ($29 for the first card reader)
- Offers discounted rates for qualifying nonprofit organizations
PayPal offers a variety of standout products, such as Payflow, which makes our list of the best payment gateways. However, what makes PayPal Zettle stand out is that, unlike Payflow, it doesn’t require integration for PayPal users to accept payments. As one of the easiest means to accept recurring payments, it is the best choice even for microbusinesses.
Other PayPal Zettle features include:
- International payment processing
- $1 transaction minimum
- Can process up to $500,000 in 24 hours ($10,000 per transaction) for chip and PIN transactions
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Card Reader | PayPal Terminal | Store Kit Portable | Store Kit Range |
Helcim: Best Low-cost Payment Processing for Growing Sales
Pros
- No monthly fee
- Free invoicing and ecommerce tools
- Automatic volume discounts
Cons
- Not ideal for low-volume businesses
- Limited back office integration
- Expensive mobile card reader
How It Compares to Square
- Both Square and Helcim offer free plans and no long-term contracts.
- Both offer tablet-based POS systems.
- Helcim offers volume-based interchange-plus pricing, Square uses a simple flat rate.
- Square offers more choices for hardware.
- Helcim offers multicurrency features that Square does not have.
- Both providers are great choices for free merchant accounts.
Helcim offers the cheapest payment processing for growing businesses that comes with free ecommerce and POS tools, invoicing and recurring billing tools. It also includes multicurrency payment processing features, so you can receive international sales in your local currency at no extra cost. However, while it has in-person hardware similar to PayPal Zettle, the device is among the most expensive mobile card readers.
Use Helcim if you have an established business with growing sales for both commercial retail and business-to-business (B2B). It offers zero monthly fees, automated volume discounts, and an excellent recurring payments platform. However, you may find it lacking in terms of back-office integration.
- Monthly software fee: $0
- Payment processing:
- Online transactions: Interchange plus 0.2% to 0.5% plus 10 to 25 cents
- In-person transactions: Interchange plus 0.1% to 0.3% plus 5 to 8 cents
- Domestic ACH/ Wire transfers: 0.5% + 25 cents, $5 return fee
- Chargeback fee: $15
- Hardware: $109
Of all the Square alternatives in our list, only Helcim offers interchange plus pricing—and without a monthly fee. This pricing structure is often reserved to large-volume merchants but Helcim makes it available for small businesses—even for startups. Automated discounts begin if your monthly sales reach more than $25,000 per month.
Specific Helcim features include:
- Multicurrency payment processing
- Free mobile payment app and POS
- Free ecommerce sales tools
- Multichannel sales management
- Recurring billing and subscriptions management
- JavaScript-based payment security functionality with Helcim API
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Card Reader |
Stripe: Best Square Competitor for Online Payment Processing
Pros
- No monthly fee
- Fully customizable with open APIs
- Wide range of payment methods
Cons
- Higher processing rates than Square
- Fewer in-person payment options
- Technical skills required to set up
How It Compares to Square
- Square and Stripe are both free-to-use payment processing.
- Square has a built-in, fully integrated POS software; Stripe does not.
- Square provides chargeback protection, Stripe chargebacks cost $15 per instance.
- Both systems charge 2.9% plus 30 cents for ecommerce transactions.
- Both Stripe and Square offer application programming interfaces (APIs) but Stripe offers better customization.
Stripe, which started as an online-only platform but has since released Stripe Terminal to accommodate in-person payments, is a solid Square alternative to process online payments for businesses of all sizes. Because it is so popular, many ecommerce platforms and website builders have Stripe Payments built right into their software.
Use Stripe if you accept online business orders requiring flexible payment tools for checkout pages, payment links, and even invoicing. Customization is Stripe’s key feature. It offers open API software that allows businesses with the technical resources to build a branded checkout experience, making it one of our top payment gateways. It is also our leading B2B payment solution because of its compatibility with a variety of payment types and billing processes.
- Monthly software fee: $0–$10 (Stripe Checkout)
- Payment processing:
- Ecommerce: 2.9% + 30 cents
- Touchless: 2.9% + 30 cents
- Virtual terminal: 2.9% + 30 cents
- Card-present (in-person): 2.7% + 5 cents
- Keyed-in: 3.4% plus 30 cents
- ACH: 0.8%, $5 cap
- Hardware: $59 to $249
Stripe is a popular choice for custom online checkouts and is, therefore, a good Square alternative for businesses looking to streamline their customer checkout experience. However, unlike most of the other options on this list, Stripe is strictly a payment processor, with extremely basic POS features (pretty much non-existent when compared to most Square competitors).
Specific Stripe features include:
- Customizable in-app checkouts
- Hosted checkout pages with easy setup
- Recurring billing, payment plans, subscriptions, and memberships
- Ability to receive funds from transactions on a two-day rolling basis
- Ability to choose from a weekly or monthly deposit schedule
Learn how to accept online credit card payments and set up recurring billing.
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Stripe Reader M2 $59 | BBPOS WisePad 3 (For non-US merchants) | BBPOS WisePOS E $249 |
You can purchase Stripe credit card readers from the Stripe dashboard once you sign up for a merchant account.
SumUp: Best for Occasional Sellers & Low-ticket Sales
Pros
- Free payment app
- Unlimited employee logins
- Zero international payments fees
Cons
- Limited ecommerce integration
- Complaints of account holds and closures
- Not compatible with high-risk merchants
How It Compares to Square
- Like Square, SumUp offers a pay-as-you-go subscription.
- Square includes built-in ecommerce tools which SumUp does not have.
- Square offers a wider range of hardware options; SumUp does not
- SumUp offers more mobile card reader options but lacks the range for larger payment terminals like Square.
- Both offer business hours customer support.
- Both offer outstanding credit card payment apps.
Not many competitors can compare with Square’s mobile payment solution, but SumUp comes close. It is a payment processor with a free payment app and a wide range of very affordable mobile card readers that allow you to access more payment processing features as you upgrade.
Use SumUp if you have a seasonal business that often sells at different locations such as farmers markets, tourist spots, and trade fairs. Like Square, SumUp does not charge any monthly fees and transaction rates are competitive. It also does not impose add-on costs for accepting payments from foreign credit cards. However, this provider’s ecommerce tools are limited, so if you need this feature, consider Shopify instead.
- In person: 2.75% swipe, dip, and contactless (Google Pay and Apple Pay)
- Virtual terminal (not available to all business models): 3.25% plus 15 cents
- Mobile: 3.25% plus 15 cents via a link to a web form sent by email or SMS
- Gift cards: 3.25% plus 15 cents
- Invoice: 2.90% plus 15 cents paid online through a payment link
SumUp is designed for mobile-based businesses, so you won’t find advanced POS features and tools similar to Square’s. You will, however, find additional payment methods—such as digital invoicing, refunding, and dynamic tip processing—as you upgrade your SumUp hardware.
More SumUp features include:
- Two-step easy signup
- Pay-as-you-go subscriptions
- Affordable 3-in-1 mobile card readers
- Design, sell, and accept digital gift cards as a payment method
Lightspeed: Best Square Alternative for Managing Large Inventory
Pros
- Fully integrated, industry-specific POS
- Granular matrix inventory features
- Integrated ecommerce platform
Cons
- Pricey subscription plans
- Does not include vendor management
- Limited offline functionality
How It Compares to Square
- Square’s subscription plan is more affordable.
- Both Square and Lightspeed offer industry-specific POS.
- Lightspeed offers more sophisticated inventory management.
- Lightspeed’s reporting tools are significantly more robust.
- Both systems offer in-house payment processing with flat-rate fees.
- Both systems provide an integrated ecommerce platform, though Lightspeed’s is more sophisticated.
Lightspeed is the closest to Square in the sense that it’s also an all-in-one POS system with built-in payment processing, hardware, ecommerce, industry-specific software, and business management tools. But while Square provides a more affordable solution, Lightspeed’s inventory management, ecommerce, and reporting tools are more robust.
Use Lightspeed if your business has outgrown Square’s inventory management capabilities. Essentially, Lightspeed sets the standard for inventory management. So, if you’re looking for a POS that has greater functionality and granularity than Square’s, then Lightspeed is your best option.
- Monthly software fee:
- Retail POS: $69–$199
- Restaurant POS: $69–$399
- Payment processing:
- Chip, Tap & Swipe: 2.6% plus 10 cents
- Keyed-in: 2.6% plus 30 cents
- Hardware: Around $49 to $1,000 based on similar products from third-party websites
Apart from inventory, Lightspeed also comes with strong reporting features and analytics tools that every growing business needs as it scales. You’ll also find a suite of integrations to customize the system easily based on your requirements.
Lightspeed’s most notable features include:
- Advanced matrix inventory
- Multichannel management
- Ecommerce platform
- Built-in and customizable reports
- Automated data visualization
- Built-in purchase ordering
- Automated return management
- More than 3,000 preloaded vendor catalogs
You will find Lightspeed in our list of most recommended POS inventory systems for its advanced inventory features that can handle multiple revenue streams. For its restaurant software, Lightspeed’s inventory tools make it an excellent choice for quick service restaurants. It also made our list of multichannel POS systems.
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Mobile Tap Contact Lightspeed for Price | Wise POS E Contact Lightspeed for Price | Contact Lightspeed for Price | Contact Lightspeed for Price |
Shopify: Best Square Competitor for Online Retail Businesses
Pros
- Complete online store builder
- Integrates multichannel selling
- Thousands of apps to choose from
Cons
- Requires a monthly fee
- Checkout lacks customizability
- Very limited offline payment options
How It Compares to Square
- Both systems offer a free-to-use POS system.
- Shopify only works for retail; Square supports a range of business types.
- Shopify is better than Square for online sales.
- Square offers better tools for brick-and-mortar businesses.
- Both systems offer month-to-month billing and discounts for high-volume sellers.
Shopify is the Square competitor with the most robust ecommerce offering, making it our top recommendation for the best ecommerce platform. You can build automated cart abandonment emails, create custom promotions and discounts, and leverage Shopify’s suite of shipping tools and services. Compared to Square, it offers more advanced and comprehensive features, but at a higher cost.
Use Shopify if you want to run your business primarily from a website. Small businesses can set up and customize an online store and use Shopify’s payment processing and POS tools to build a well-rounded retail command center. It comes with integrated social selling, local delivery, and curbside pickup options—a great way for retailers to get started on other channels.
- Monthly software fee: $39–$399 (Ecommerce), $0–$89 (POS)
- Payment processing:
- In-person: 2.4% to 2.7%
- Online: 2.4% + 30 cents to 2.9% + 30 cents
- Hardware: $49 to $229
Shopify’s other features include:
- Staff logins with secure PIN passcodes
- Detailed retail analytics and reporting
- Mobile dashboard app to track trends, manage inventory, and contact customers
- 24/7 support via phone, email, and live chat
- Full line of proprietary hardware; integrates with third-party hardware
- Ability to support existing barcodes and create new ones
- Ability to organize products by type, season, category, sale, and so on
Like Square. Shopify also offers tightly integrated online and in-person payment solutions. It is also our top-ranking multichannel POS system for native online businesses.
Toast: Best for Businesses That Have Outgrown Square’s Restaurant Features
Pros
- Advanced restaurant POS and hardware features
- Pay-as-you-go plan with $0 upfront cost
- Free starter POS software
Cons
- No cash tracking for basic plan
- Expensive to upgrade
- Requires long-term contract
How it Compares to Square
- Both Square and Toast offer free starter POS software but Toast is exclusively for restaurants
- Both offer proprietary hardware
- Only Toast offers a free starter kit hardware but comes with higher transaction fees compared to Square
- Both offer a $0 monthly plan but Square offers better transaction rates.
- Unlike Square, Toast requires a long-term contract.
Toast is one of the most popular and reliable all-in-one restaurant POS system providers that, like Square, comes with its own payment processing and industry-grade proprietary software. Built for restaurants, you get streamlined inventory management and payment tools along with a complete suite of industry-specific functionalities making it the best Square competitor for restaurants.
Use Toast if you run a full-service restaurant that has outgrown Square’s restaurant POS software. Toast’s is fully loaded with restaurant specific functionalities that can easily keep up with your growing business. While hardware is expensive, it offers a starter kit with zero upfront cost and zero monthly fee. Note, however, that this comes with a 2-year contract and you pay for the hardware with a portion of your sales.
- Monthly fee:
- Standard plan: $69–$165 (base fee), $50–$75 (optional upgrade)
- Pay-as-you-go plan: $0 (base fee), + 0.4% per transaction (optional upgrade)
- In-person processing:
- Standard plan: 2.49% + 15 cents
- Pay-as-you-go plan: 2.99% + 15 cents
- Keyed-in and invoice processing:
- Standard plan: 3.50% + 15 cents
- Pay-as-you-go plan: 2.99% + 15 cents
- Hardware Fee:
- Standard plan: $799 upfront cost
- Pay-as-you-go plan: $0 upfront cost
- Contract length: 2 years
Toast’s software is significantly more advanced compared to Square for Restaurants although if you look closely, Square’s paid plans offer more value, with more features available at $60/mo compared to Toast’s $69/mo plan. However, Toast is known for matching prices if you are switching from a different POS provider with the proper documentation.
Other notable Toast features include:
- Fully integrated restaurant POS software
- Kitchen display system
- Advanced inventory management with xtraCHEF
- Workforce management
- Menu and table management
- Digital ordering and delivery
- Loyalty and marketing tools
Countertop Kit | Handheld Kit | Guest Self-Service Kit |
|---|---|---|
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Pay upfront: $875 + $69 per month or Pay-As-You-Go: $0 and 2.99% + 15 cents per in person transaction | Pay upfront: $627 + $69 per month or Pay-as-You-Go: $0 and 2.99% + 15 cents per in-person transaction | Pay upfront: $1,009 + $99 per month or Pay-as-you-Go: $0 and 2.99% + 15 cents per in-person transaction |
If Square no longer meets your restaurant requirements but you feel that Toast’s pricing is not for you, or it has too many bells and whistles that your restaurant still doesn’t need, consider other competitors to Square such as:
- Lightspeed Restaurant: Best for quick-service restaurants with advanced inventory features and works on iPads. Monthly fee starts at $69/month.
- Loyverse: A free restaurant POS software (upgrades from $5–$25/month), also best for quick-service restaurants. It works with a number of payment processors and hardware.
How We Evaluated Square Alternatives
As an all-in-one solution, Square is often compared, not only against POS systems, but also with payment processors, credit card readers, online platforms, and more. We started by identifying areas where Square’s features fall short and rounded up a number of possible provider options. We then evaluated each potential alternative in terms of pricing, features, and ease of use to come up with our final recommendations.
Finally, we matched each of our chosen alternatives to different business types that have outgrown Square’s POS, payment processing, and business management solutions. Read our Square POS review.
Square Competitors Frequently Asked Questions (FAQs)
As an all-in-one solution, Square competition varies depending on business aspect. For instance, with point-of-sale software, we consider Lightspeed as the top Square competitor. For hardware solutions, Square’s biggest competitor is Clover. Shopify tops as the top ecommerce alternative to Square, while PayPal and Stripe competes with Square for payment processing services.
Credit card processing comes with strict security regulations for safe credit card processing both online and in-person. Companies like Square observe PCI compliance to ensure that proper fraud prevention and monitoring are in place when accepting credit card transactions. Learn more about PCI compliance for small businesses.
Reducing your credit card processing fees start by knowing what type of business you have, which channels you sell from, and how much you sell every month. This will help you determine the type of payment method and pricing structure to look for.
Small businesses with low-volume sales benefit from predictable pricing with zero monthly fees while larger businesses can save more with wholesale interchange plus pricing in exchange for one monthly subscription cost. Find the cheapest credit card processing companies for your business type.
Retailers love Square because of its all-in-one POS software, hardware, payment processing, ecommerce, and business management solution. Depending on your priorities, Lightspeed, Shopify, SumUp, PayPal, and Clover are the closest that comes to Square with overall similar functions.
Bottom Line
Square competitors like Clover, PayPal, Helcim, Stripe, SumUp, Lightspeed, Shopify, and Toast provide comparable features for certain business types. Some merchants may find these companies a better match in terms of inventory management, customization, and payment processing to grow their particular sales platform.
Though there are scenarios when you would want to use these Square alternatives, Square is our top-recommended POS and payment processing solution. It has no monthly fee and is easy to set up and use. It’s a great fit for new businesses, mobile businesses, and businesses with small average transactions. Plus, you are never locked into any long-term contract. Create a free Square account today.
