PayPal vs Square: Which Should You Choose in 2026?
Choosing between PayPal and Square comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
PayPal
The original online payment system, still everywhere
Best for you if:
- • You need invoicing features specifically
- • PayPal is a global payment platform for online transactions
- • It enables payments, invoicing, and checkout for businesses worldwide
Square
Payment processing and POS systems
Best for you if:
- • You want the higher-rated option (8.2/10 vs 8.0/10)
- • You need payment processing features specifically
- • Square is a payments and commerce platform for businesses
- • It provides payment processing, POS, and business management tools
| At a Glance |  PayPal |  Square |
|---|---|---|
Price | Free + Paid | Free + Paid |
Best For | Invoicing | Payment Processing |
Rating | 80/100 | 82/100 |
| Feature | PayPal | Square |
|---|---|---|
| Pricing Model | Freemium | Freemium |
| Editorial Score | 80 | 82 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | InvoicingPayment Processing | Payment ProcessingE-commerce Platforms |
How PayPal and Square Compare
PayPal
The original online payment system, still everywhere
Free tier available · 80/100 score
Square
Payment processing and POS systems
Free tier available · 82/100 score
PayPal is a invoicing tool. Square is in payment processing.
Who Should Use What?
On a budget?
Both are freemium. Compare plans on their websites.
Go with: PayPal
Want the highest-rated option?
PayPal: 80/100. Square: 82/100.
Go with: Square
Value user reviews?
Neither has user reviews yet.
Go with: Square
3 Questions to Help You Decide
What's your budget?
Both are freemium. Pricing won't help you decide here.
What's your use case?
PayPal is a invoicing tool. Square is in payment processing. Pick the category that matches your needs.
How important are ratings?
Square scores higher: 82/100 vs 80/100.
Key Takeaways
Square
- Higher score: 82/100 vs 80
- Free tier available
- Our pick for this comparison
PayPal
- Better fit for invoicing
The Bottom Line
Square (82/100) is our pick.
Frequently Asked Questions
Is PayPal or Square better?
Square scores 82/100 in our evaluation. Both are freemium.
What are PayPal and Square used for?
PayPal: The original online payment system, still everywhere. Square: Payment processing and POS systems.
What does PayPal cost vs Square?
PayPal is freemium (free tier + paid plans). Square is freemium (free tier + paid plans). Visit their websites for detailed pricing.