Stripe is a developer-friendly payment processing solution best for online businesses wanting to add a customizable checkout to their website. Square is an out-of-the-box point-of-sale (POS) and payment processing platform that’s best for small businesses needing an all-in-one solution.
When comparing Square and Stripe, the main difference is Stripe requires technical knowledge and needs to be installed on a separate website or app to accept payments. Square requires no technical skills and offers a free website that has Square payment processing automatically built-in.
Square: Best for individuals, brick and mortar businesses, and occasional online sales.
Stripe: Best for tech-savvy startups and growing ecommerce businesses.
Stripe and Square both:
- Allow businesses of all sizes to accept online payments
- Provide user-friendly solutions
- Offer average—but not the lowest—transaction fees
- Do not offer the stability of a traditional merchant account
Stripe vs Square Pricing
Stripe | Square | |
|---|---|---|
Online card transactions | 2.9% + 30 cents | 2.9% + 30 cents |
In-person card transactions | 2.7% + 5 cents | 2.6% + 10 cents |
ACH debit transactions | 0.8% ($5 cap) | N/A |
Recurring / card-on-file transactions | 2.9% + 30 cents* | 3.5% + 15 cents |
*Plus 0.5% after first $1 million
Takeaway: Square and Stripe tie for pricing on ecommerce transactions. Plus, they both have no monthly, startup, cancellation fees, or monthly minimums—you’re just paying per transaction (unless you elect to add-on extra features), and any contracts are month-to-month.
Stripe offers a better value than Square on recurring or card-on-file transactions for businesses that do regular invoicing or operate on a subscription model. Stripe also accepts ACH payments, sometimes referred to as EFT or bank transfers. ACH payments are a much more affordable payment method for large-sum invoices and recurring membership payments.
Stripe vs Square Features
Stripe | Square | |
|---|---|---|
Overall | Industry-leading developer features | Plug-and-play user-friendly solution |
Just payment processing: Needs to be connected to a website or ecommerce platform | One-stop-shop: Includes a free online store and free point-of-sale (POS) software | |
Checkout screens | Highly customizable | Templated |
Mobile payments app | N/A | Free |
POS system | N/A | Free |
Online store | N/A | Free |
Invoice management | ✔ | ✔ |
Accepts all major credit and debit cards | ✔ | ✔ |
Stand-out payment types | ACH, international payments, Alipay, WeChat Pay | PayPal, Square Pay, native gift card solution |
Customer support | Excellent, 24/7 phone support | Limited-hours phone support |
Takeaway: Square is the winner when it comes to ease of use and overall value for small businesses. Anyone can sign up for a free account and start accepting payments online, in-store, or through the mobile app in a matter of minutes through Square’s free software.
With Stripe, you have to connect the processor to your website or a third-party POS app. And, setting up a custom checkout (which is the best part of using Stripe) requires technical skill and ongoing maintenance.
Stripe offers way more flexibility with payment options—eight wallet payment options (compared to Square’s three), a dozen local payment options, over 135 currencies, and options to set up local Stripe accounts in over 25 countries. However, you cannot accept PayPal payments through Stripe, but you can with Square.
When to Choose Stripe
Stripe Strengths | Stripe Weaknesses |
|---|---|
Excellent developer tools | Requires technical skill |
Predictable, competitive pricing | Account stability issues |
Good for international or enterprise ecommerce businesses | No PayPal, limited options for in-person sales |
Takeaway: Stripe is an ideal payment processing option for any ecommerce business or service provider that needs to collect invoices or recurring payments online if you have a team of developers. Stripe is used by Target, Blue Apron, Glossier, Lyft, and thousands of other startups, growing, and enterprise-level businesses.
Stripe’s over 300 integrations, reliable APIs, and detailed instruction documentation make it a great solution for businesses that want to create a customized checkout solution to add to their website.
Read what users think of using the service in our Stripe reviews page.
When to Choose Square
Square Strengths | Square Weaknesses |
|---|---|
Excellent value, predictable fees | Account stability issues |
User-friendly system | Limited customization options |
All-in-one system, free POS and online store | Large businesses could outgrow the platform |
Takeaway: For most small businesses, Square is one of the best payment processors you can choose. It’s incredibly user-friendly and bundles together everything you need to accept payments online, in-store, and via mobile all in one free package. Square’s free software is an unbeatable value for individuals or businesses with just a few team members needing a solution you can implement immediately and manage yourself.
Learn more about their features and pricing on our review of Square Payments.
Bottom Line – Stripe vs Square
When debating between choosing Square or Stripe for your business, it comes down to one question: Are you a tech-savvy startup or a business owner looking for a user-friendly solution? For tech-savvy startups wanting lots of flexibility, Stripe is best for you. Square offers a plug-and-play solution for accepting payments anywhere, along with a suite of free business management tools that is the better fit for most small businesses.
Still not sure whether Square or Stripe is right for you? Take this one-question question quiz to find out:
Mike McClain
Thank you for this write-up!
Krista Fabregas
Hi Mike,
You bet! Which did you go with Square, Stripe, or another option?
Cheers,
Krista