Stripe vs Square: which should you choose?
Quick answer: Stripe is built for online businesses, while Square suits retail & hospitality. For most users Square is the stronger default, but Stripe can be the better fit depending on your budget and use case. Square has the lower entry price.
Stripe and Square look similar on the surface; the differences show up in practice. Below we compare them on pricing, strengths and the use cases each one fits, then give a clear verdict.
Side-by-side
| Stripe | Square | |
|---|---|---|
| Category | Payments | Payments & POS |
| What it's known for | Developer-first payments infrastructure with billing, invoicing, and a vast API for online businesses and platforms. | All-in-one payments, POS hardware and business tools for retail and hospitality, with invoicing and basic banking. |
| Pricing | ~2.9% + $0.30 per online card transaction; Billing and other products priced separately. | Free software tiers; ~2.6% + $0.10 in-person card processing; hardware sold separately. |
| Best audience | Online businesses, developers and platforms/marketplaces. | Retail, restaurants and in-person sellers needing POS plus payments. |
| Best for | Online businesses, Developers, Platforms & marketplaces | Retail & hospitality, In-person payments, POS hardware |
| Entry price | 2.9% + $0.30 | $0/mo |
| Biggest strength | Industry-leading developer experience and API breadth. | Free software tier to start, hardware-rich ecosystem. |
| Main caveat | No public self-serve affiliate/commission program. | Online and keyed transaction rates are higher than in-person. |
Features compared
Beyond the spec sheet, these are the capabilities that define each tool:
Stripe key features
- Developer-first payments API for online businesses and platforms
- Stripe Billing for subscriptions and invoicing
- Stripe Terminal for in-person payments
- Stripe Connect for marketplaces/platforms
Square key features
- All-in-one payments with in-person, online and keyed card acceptance
- POS app that adapts to retail, restaurant and appointment businesses
- POS hardware range (Reader, Stand, Terminal, Register, Handheld)
- Square Banking (checking/savings) with instant access to sales
Pricing tiers side by side
Stripe plans
| Plan | Price | What's included |
|---|---|---|
| Standard (online) | 2.9% + $0.30 | Per successful US card charge |
| Terminal (in-person) | 2.7% + $0.05 | Per in-person transaction |
| Billing | +0.7% | Pay-as-you-go on recurring charges |
| Managed Payments | +3.5% | Merchant-of-record handling tax/fraud/disputes |
Square plans
| Plan | Price | What's included |
|---|---|---|
| Free | $0/mo | 2.6% + $0.15 in-person card |
| Plus | ~$49/mo per location | Industry-specific advanced features |
| Premium | ~$149/mo per location | Lowers in-person rate to 2.4% + $0.15 |
Tiers compiled from the vendors' published plans and independent reviews; prices are approximate and change often, so confirm current figures (and your region's taxes) on each vendor's site.
Strengths compared
Where Stripe wins
The developer's payments infrastructure, powering online businesses, subscriptions and marketplaces.
- Industry-leading developer experience and API breadth.
- No setup or monthly fees on the standard plan.
That makes it the stronger pick for online businesses, developers and platforms/marketplaces.
Where Square wins
All-in-one payments, POS hardware and business tools tailored to retail and hospitality.
- Free software tier to start, hardware-rich ecosystem.
- Strong for retail and hospitality with integrated tools.
That makes it the stronger pick for retail, restaurants and in-person sellers needing POS plus payments.
Verdict: choose by fit
Both are good at the job, so let your priorities decide.
- Choose Stripe if you fit its core audience — online businesses, developers and platforms/marketplaces.
- Choose Square if you fit its core audience — retail, restaurants and in-person sellers needing POS plus payments.
FAQ
Is Stripe better than Square?
Square is the stronger default for most users, but Stripe can be the better fit depending on your budget and use case.
What is the main difference between Stripe and Square?
Stripe is the developer's payments infrastructure, powering online businesses, subscriptions and marketplaces. Square is all-in-one payments, POS hardware and business tools tailored to retail and hospitality.
Which is cheaper, Stripe or Square?
Entry pricing differs: Stripe starts at 2.9% + $0.30, while Square starts at $0/mo. Compare the tiers above against your usage.
Sources
Facts above are drawn from these independent reviews and the vendors' own pages for Stripe and Square: