In general, Square is a better option to accept in-person payments while PayPal is a better option for e-commerce and online payments. Both Square and PayPal were rated one of our top ten POS systems in 2021, but Square received a significantly higher score.
One of the biggest differences between these two companies’ POS systems is that Square offers more business tools, such as employee management, while PayPal’s features are limited to payment. Square has a feature to schedule appointments within the app so that you can integrate your calendar with your payment platform. Customers can book online and you can send them reminders through the app. The software also enables you to keep client credit cards on file and schedule prepayment before visits.
PayPal’s transaction fees are listed as lower for card-present transactions—2.29% plus $0.09 compared with $2.6% plus $0.10—however, PayPal does have more additional fees that are less apparent and harder to account for (such as a $20 chargeback fee and additional fees to process international credit cards).
The first card reader Square gives you is free. After that, each additional card reader is $10. With PayPal, card readers cost $29 and $79 for each additional device. Square offers a tip management tool and both companies offer multiple options for software integration.