PayPal vs Square
Last updated: May 01, 2017
PayPal is an international e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as cheques and money orders. PayPal is the faster, safer way to send money, make an online payment, receive money or set up a merchant account.
Accept credit cards on your iPhone, Android or iPad. Send invoices free with Square Invoices. Signing up for Square is fast and free, and there are no commitments or long-term contracts.
Latest news about PayPal and Square:
01.05.17. PayPal launched small biz toolset Business in a Box. PayPal launched a new service called Business in Box, aimed at bringing more U.S. small business owners to its payments platform. The service, which was developed in partnership with WooCommerce and Xero, offers merchants a suite of tools for running their online businesses, including an online storefront, accounting tools, the ability to apply for working capital from PayPal, and of course, support for taking payments either online or offline, via PayPal. Business in a Box is largely aimed at first-time business owners who already know what they want to sell and have a roadmap in mind, as well as at established offline businesses that want to make the move online.
18.04.17. PayPal teams up with Android Pay for mobile payments. PayPal and Google announced an effort aimed at allowing PayPal to expand its footprint both within mobile applications as well as at brick-and-mortar retailers. The partnership will see PayPal becoming available as a payment method in the Android Pay service, which will allow U.S. users to pay for things like Uber as well as at retailers like Walgreens, and restaurants like Dunkin’ Donuts and Subway. The integration in Android Pay will begin by allowing Android users to select their PayPal balance as a method of payment, but will expand to include the cards users have added to their PayPal account in the months ahead.
09.02.17. Mobile POS system Square launched Retail app. Square is launching a new Square Retail app that complements a comprehensive backend package of tools that include complete coverage of inventory management, customer relationship management and employee tools. The new offering is designed to really provide a next-level retail solution for merchants and shop owners who need more than just the Square Reader and basic square mobile app. The solution can scale depending on the needs of their clients, but can serve any customers from a one-location shop to a merchant with multiple storefronts and lots of inventory to track. For now the primary type of retailer Square is targeting with this product are those in the “finished goods” business, which means people who have packaged products or things like shirts and clothing that have barcodes, as well as things like wine or games.
22.09.16. Square now allows to charge loyal customers without card swiping. Mobile payment processing service Square launched a new feature called Card on File that allows to charge recurring customers without card swiping (and even without asking for the card). It's also suitable for customers, because they can come to your shop or restaurant without card and money, take what they want and go away. And you quietly charge the appropriate amount from the card. Of course, first these customers have to opt in and enter their card data to your company's Square account. Besides, using Card on File businesses can charge remote customers without internet payment. But this feature is a little more expensive for business: it will cost you 3.5% plus 15 cents, compared to the 2.75% commission for swiping a card.
23.07.15. Square launched a dashboard app for iOS. Mobile payment processing service Square has released its second non-consumer app, a dashboard app for iOS that lets business owners track sales in real-time and allows them to dig into the health of their business with analytics. This app isn’t for the barista at the coffee shop, but it was built for the owner who might be watching over things while they’re not at the shop. With this app, business owners can track how many items are left in stock in multiple locations, for example, which can help them make important decisions on the fly without having to sit down at a computer.
06.07.15. Square launched payroll service for small businesses. Mobile payment startup Square has launched Square Payroll, software for businesses to pay and track taxes and other costs for both hourly and salaried employees. The product is priced at $20 per month, with $5 per employee on top of that. In terms of payroll software, Square is positioning itself — at least for now — as a fairly simple product. It includes timecards, taxes, and the ability to track and pay both salaried and hourly workers, and its price is all-in. Square Payroll is entering a pretty crowded market, competing against the likes of Intuit’s Quick Books, ADP, Paychex and others. A few, like Wave Accounting, offer some but not all the same features: Wave, for example, doesn’t handle tax payments or tax filings — they estimated tax liabilities. It is also less expensive. It starts with two base tiers of $10 and $15 plus $4 per each employee.
06.07.15. PayPal acquired international money transfer company Xoom. PayPal has acquired money transfer company Xoom for $890 million, a move that brings millions of international customers to the company. Xoom bills itself as "an international money transfer service" that allows people to send money across borders. Xoom recently expanded into China and Pakistan, and is popular in a variety of developing markets — an advantage that PayPal President Dan Schulman highlighted. The acquisition is PayPal's first major move since its announced split from eBay, a move investors had demanded. PayPal is expected to complete the separation later this year. Xoom will continue to operate as a separate company under PayPal.
09.06.15. Square's new wireless card reader will accept Apple Pay and work with Android. New Square Reader is a tiny square device designed to allow any merchant with a tablet or smartphone to begin wirelessly accepting Apple Pay and contactless mobile payments, as well as payments from EMV (Europay, MasterCard and Visa) chip cards. The $49 device is a bit of an upgrade from Square's previous $29 merchant reader, which was a bit clunky and not wireless. It works with the most recent versions of the iPad, the iPhone (as far back as the iPhone 4S), as well as Android devices from manufacturers such as Samsung, HTC, Asus, Motorola, LG, Dell and Toshiba.
01.10.14. PayPal will split from eBay in 2015. eBay and PayPal are going their separate ways, with the payments company moving out from under the eBay umbrella to form its own, publicly-traded company. The move is intended to help both businesses grow faster in their respective markets. The spin-out of PayPal is expected to be complete by the second half of 2015, provided all regulators sign-off on the agreement. Both companies will get new CEOs as part of the deal, with eBay Marketplaces President Devin Wenig taking over at eBay, and PayPal President Dan Schulman presiding at PayPal. eBay picking up PayPal was about trying to inject some energy into its instant buy, same-day delivery and curated storefront businesses, but with PayPal’s forays into mobile payments, including its Braintree acquisition and its One Touch system, the company is moving more and more towards in-person mobile transactions and away from online commerce.
24.09.14. PayPal allows merchants selling digital goods to accept Bitcoin. Earlier this month PayPal announced that its subsidiary unit, Braintree, will accept bitcoin via integration with Coinbase. And today PayPal is dipping its toes even more into the world of bitcoin. PayPal has entered into agreements with leading Bitcoin payment processors BitPay, Coinbase and GoCoin. Starting today, these agreements let PayPal digital goods merchants accept Bitcoin with a simple integration through the PayPal Payments Hub. This will be available to merchants in North America first. Though users still won’t be able to start stashing their bitcoin in their PayPal accounts, the news had an immediate impact on Bitcoin price - it now stands at around $450 - up more than 10%.
08.09.14. Square adds sales tax reporting through TaxJar. Mobile payment provider Square integrated with TaxJar, which lets companies automatically count and report local and state sales taxes. Users can link up their accounts in two services, but this is not an offer to use TaxJar for free. Businesses doing less than 1,000 transactions per month pay $9.95 monthly, with prices increasing according to volume. Square says that the service is retroactive — meaning, if you activate it now you can set it to calculate sales tax on past transactions, not just those that are in the future. The advantage of adding TaxJar is twofold for Square: on one hand it gives businesses another feature, and one that is usually a pain for businesses to sort out, which may sway more of them to using Square for front-line payments. On the other, if you are an existing business, something like this could help to keep you as a customer of Square’s and choose this route for transactions and other business services.
22.08.14. Square adds analytics tools for small business. Mobile payments provider Square is launching Square Analytics, a free set of tools that tie in to its suite of register products, which already includes Inventory, Invoices, and the recently launched Appointments. Tying in to the data that Square already collects about a small business’s sales, Square Analytics is able to show real-time updates on which products are doing well, when sales are best each day, how many customers are being served, and more. For those retailers who don’t think they need updates for the very latest data, Square Analytics also sends data summaries to your email at your preferred rate; if you want to dig into that data, each email also comes with spreadsheets with all of the data captured by Square’s tools. Square Analytics can also tie into a retailer’s accounting software, letting you connect your account to services like Quickbooks or Xero.
21.08.14. PayPal launches one-touch mobile checkout for apps. Last year, payment processing provider Braintree began offering a new one-touch payment service to mobile app developers that let their customers check out and pay using identity and financial credentials already stored in its Venmo wallet. Today Braintree’s new owners eBay is combining Venmo Touch technology with PayPal. So, app designers can now put a “PayPal Touch” button in their apps that will instantly authorize a mobile transaction. The idea is that you would no longer have to re-enter your credit card information at checkout or time of payment within these apps – it would be stored via the PayPal Touch service and recalled when needed.
31.07.14. New Square reader accepts chip-enabled cards. Payment processing provider Square introduced a new mobile card reader that will accept chip cards. Although the new reader looks strikingly similar to its previous model and still fits in your pocket, it's far more powerful: the reader will actually help users thwart off card fraud and protect sensitive data. Square allows small business owners to accept credit card payments via mobile devices such as the iPhone, iPad and Android smartphones. One of the major differences is that the new reader requires charging — it comes with a USB port. But considering the heightened benefits of data protection and security, it's just a small extra step merchants need to take to keep the product powered. The new Square reader will be available for pre-order later this year.
06.06.14. Square gets online invoicing feature. Square is known for its mobile (phone-based) merchant service, that allows to accept bank cards. Now it gets the ability to send invoices online (by email). Square isn’t charging for the service, and it makes no money if a payer sends in a check or brings in cash. But if he selects an option to pay online with credit card, Square will process the transaction and charge its usual 2.75 percent fee. In the last few months, Square has added a lot of new features to its dashboard and core Register app, from customer feedback to pre-ordering.