Stripe Vs. Square: Which Is Better For Your Business In 2025?

Are you starting a business or considering switching your payment processor? You’ve likely come across Stripe Vs. Square, two of the biggest names in payment processing. But which one is the right fit for your business?

The ability to accept payments online is increasingly important in today’s digital economy. With the growth of e-commerce and m-commerce, there has been an increased need for secure and convenient payment processing services. 

Stripe is a payment processing company that started in 2010 and is located in San Francisco. Their payment processing services are for Internet businesses, with an emphasis on e-commerce operations. 

On the other hand, Square was established in 2009 and has its headquarters in the same Californian city. The company specializes in providing payment processing services to small companies, both online and offline.

In this blog post, we’ll dive into the similarities and differences between Stripe and Square, and help you figure out which one is the better fit for you.   

Stripe Vs. Square: Comparison at a Glance

Here’s a quick comparison table for Stripe Vs. Square:

Feature	Stripe	Square
Best For	Online businesses, SaaS, eCommerce, marketplaces	Small businesses, retail stores, restaurants, service providers
Pricing (Online)	2.9% + 30¢ per transaction	2.9% + 30¢ per transaction
Ease of Use	Requires technical setup, developer-friendly	User-friendly, no coding needed
Payment Methods	Credit/debit cards, digital wallets (Apple Pay, Google Pay), ACH, BNPL, crypto (via integrations)	Credit/debit cards, digital wallets, Cash App, BNPL (Afterpay), gift cards
Security & Compliance	PCI-compliant, advanced fraud protection	PCI-compliant, end-to-end encryption
eCommerce Integration	Customizable API for any platform	Built-in Square Online store, WooCommerce, Wix, BigCommerce
International Payments	Supports 135+ currencies, available in 40+ countries	Limited to select regions, mainly US, Canada, UK, Australia, Japan
Subscription & Invoicing	Advanced subscription management, recurring payments, invoicing	Basic invoicing tools, simple subscription options
Customization	Highly customizable with APIs and SDKs	Limited customization, more plug-and-play
Integrations	WooCommerce, Shopify, Magento, BigCommerce, custom-built solutions	Square Online, Square POS, Weebly, Wix, and select third-party apps

Let’s explore now in detail the comparison between Stripe and Square. We’ll break down their features, strengths, and best use cases to help you choose the right solution for your business.

Read More: How to Accept ACH Payments in WooCommerce?

Stripe Vs. Square: Features

When it comes to payment services, both Stripe and Square offer powerful tools to help businesses start accepting payments seamlessly. Whether you’re focusing on online sales or in-person transactions, each platform provides unique features to support various business models.

Let’s take a closer look at what each platform has to offer.

Stripe’s Features

Subscription and recurring billing

Stripe provides a flexible and customizable subscription billing system, allowing merchants to set up recurring payments for their products or services. 

This feature enables businesses to manage their cash flow more effectively by automating the billing process and ensuring timely payments. Stripe also offers features like metered billing and trial periods, allowing businesses to create unique subscription plans that suit their needs.

Invoicing and billing

Stripe offers a simple and intuitive invoicing system that allows businesses to create, send, and manage invoices. This feature allows merchants to bill their customers for one-time purchases, custom orders, or services rendered. 

Businesses can also create payment schedules and automate payment reminders, reducing the time and effort required to manage billing and collections.

Fraud detection and prevention

Stripe uses machine learning algorithms and real-time data analysis to detect and prevent fraud. This feature enables businesses to minimize the risk of fraudulent transactions and protect themselves from chargebacks and other financial losses. 

Stripe also offers customizable fraud rules, allowing merchants to set their own risk thresholds and adjust their fraud detection settings according to their business needs.

Global payment processing

Stripe supports payment processing in more than 135 currencies and 30 countries, making it easy for businesses to accept payments from customers around the world. This feature includes support for international credit cards, local payment methods, and currency conversion.

Stripe also offers localized payment pages, allowing businesses to provide a seamless payment experience for their customers regardless of their location.

Square’s features

Point-of-sale (POS) systems

Square provides a range of cloud based point of sale systems that enable businesses to accept payments from customers in-store, online, or on the go. Square’s POS systems include features like inventory management, sales analytics, and customizable receipts, allowing businesses to track their sales and manage their operations more effectively.

Inventory management

Square offers an inventory management system that enables businesses to track their inventory levels, set reorder points, and receive alerts when inventory levels are low. This feature allows businesses to manage their stock more efficiently, reduce waste, and avoid stockouts.

Team member management

Square provides a team member management system that enables businesses to manage their team member schedules, track team member time, and process payroll. This feature allows businesses to streamline their HR processes and ensure compliance with labor laws.

Keep Reading: How to Integrate Payment Gateways on Your WordPress Website?

Stripe Vs. Square: Payment Processing Fees

When it comes to payment processing, both Stripe and Square offer a variety of features that make them appealing options for businesses of all sizes. Let’s take a closer look at what each platform has to offer.

First, let’s talk about payment processing features. Stripe and Square both accept a variety of payment methods, including credit and debit cards, ACH transfers, and even cryptocurrencies like Bitcoin. 

However, when it comes to fees, Stripe and Square differ slightly.

Stripe charges a flat fee of 2.9% + 30 cents per transaction, regardless of the type of payment method used. 

Square, on the other hand, charges a slightly higher fee of 2.6% + 10 cents per transaction for payments made via its virtual terminal, but a lower fee of 2.9% + 30 cents per transaction for payments made through its mobile app or card reader.

In terms of payment processing time, both Stripe and Square offer fast deposits, with funds typically appearing in your account within 1-2 business days.

However, Stripe offers next-day payouts for a small additional fee, which can be helpful for businesses that need to access their funds quickly.

Stripe Vs. Square: Security and Fraud Prevention

Security and fraud prevention are essential when it comes to online payments. Both Stripe and Square offer advanced security features, including:

Encryption of sensitive data

Both Stripe and Square use industry-standard encryption protocols to protect sensitive data during transmission and storage. This means that when customers enter their payment information on a website or mobile app, the data is encrypted so that it cannot be intercepted or accessed by unauthorized parties. This helps prevent data breaches and theft of sensitive information.

Two-factor authentication

Both Stripe and Square offer two-factor authentication (2FA) to add an extra layer of security to user accounts. This requires users to provide a second form of authentication, such as a code sent to their phone or email, in addition to their username and password. This helps prevent unauthorized access to user accounts, even if a password is compromised.

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Fraud detection and prevention

Both Stripe and Square use sophisticated algorithms to detect and prevent fraudulent transactions. They analyze patterns of behavior and can identify suspicious transactions, such as multiple transactions from a single IP address or unusual purchase amounts. This helps protect merchants from chargebacks and other fraudulent activities.

Chargeback protection

Chargebacks occur when customers dispute a charge on their credit card statement. This can happen for a variety of reasons, such as a fraudulent charge or a product or service that was not delivered as promised. Both Stripe and Square offer chargeback protection to help merchants avoid financial losses due to chargebacks. They provide tools to help merchants dispute chargebacks and protect against fraudulent claims.

Stripe Vs. Square: Ease of Use

When it comes to ease of use, both Stripe and Square provide user-friendly interfaces that help commerce businesses and e-commerce businesses efficiently accept multiple payment methods. However, there are key differences in their user interface, account setup, and mobile app functionality that businesses should consider.

User Interface & Dashboard

Both Stripe and Square offer intuitive dashboards for managing credit card payments, viewing transaction history, and tracking financial data. However:

• Stripe: Designed for flexibility, making it a great choice for businesses that need customization. However, it has a steeper learning curve, especially for non-technical users.
• Square: More streamlined and beginner-friendly, offering a simple layout that allows businesses to quickly accept in-person payments, issue refunds, and access built-in marketing tools.

Account Setup & Onboarding

Setting up an account on either platform is straightforward, but there are differences:

• Stripe: Requires filling out a form with business details and linking an acquiring bank to enable credit card processing. The setup is fast but may require technical integration for businesses looking to sell online.
• Square: Slightly more detailed onboarding, as it may ask for additional personal and business verification, such as a Social Security number. However, Square makes it incredibly easy to start accepting in-person payments with its built-in POS system.

Mobile App Functionality

Both platforms offer mobile apps, but their focus differs:

• Stripe: Provides a mobile app, but it’s mainly designed for developers and lacks a fully functional point-of-sale feature. It’s more useful for tracking online sales than for handling in-person transactions.
• Square: Offers a highly user-friendly app that allows businesses to accept multiple payment methods, process refunds, and create invoices effortlessly. It’s a strong choice for businesses that rely on in-person transactions.

Read More: What Is Application Performance Monitoring?

Overall, both Stripe and Square are relatively easy to use, but the differences in the user interface, account setup, and mobile app functionality may make one platform more appealing than the other. 

If you’re looking for a payment processor that’s easy to set up and use right out of the box, Square might be the better option. If you need more advanced features and integrations, Stripe might be the way to go.

Stripe Vs. Square: Integrations and Compatibility

Integrations and compatibility with other software and platforms are crucial for businesses that use multiple tools to manage their operations. 

Stripe and Square both offer integrations with a variety of popular software and platforms, including:

E-commerce platforms

Starting with Stripe, it offers a range of plugins and integrations for popular e-commerce platforms, including Shopify, Magento, WooCommerce, and more. In particular, Stripe’s integration with WooCommerce, a popular WordPress e-commerce plugin, is seamless and user-friendly.

Learn More: How to Migrate From Shopify to WooCommerce?

WooCommerce users can easily integrate Stripe as their payment processor and accept payments directly on their website. Stripe also offers a comprehensive API that allows businesses to build custom integrations with their e-commerce platform of choice.

Moving on to Square, it also offers a range of integrations with popular e-commerce platforms, including WooCommerce, Shopify, and Magento. However, Square’s integration with WooCommerce is not as seamless as Stripe’s.

Square requires users to set up a separate Square account and install a plugin to integrate with WooCommerce. While this process is relatively straightforward, it can be a bit more time-consuming than Stripe’s integration.

When it comes to WordPress/WooCommerce specifically, Stripe may be the better option for businesses that want a more streamlined integration process. However, Square’s integration with WooCommerce is still a viable option for businesses that prefer Square’s pricing structure or hardware options.

Accounting software

Stripe and Square also offer integrations with accounting software like QuickBooks and Xero. This integration helps merchants to reconcile their payments with their accounting records, track revenue, and expenses, and generate financial reports. This saves time and reduces the likelihood of manual errors in accounting.

Inventory management software

Square offers an inventory management software called Square Inventory, which integrates with the Square payment system. This integration allows merchants to manage their inventory levels, track sales, and receive alerts when inventory levels are low. 

Stripe offers integration with Stitch Labs, which is an inventory management software that integrates with various sales channels, including Stripe.

Check Out: WooCommerce Vs. OpenCart: Who Wins?

Conclusion

Both Stripe and Square are very functional and versatile payment processing options. While Square’s suite of payment processing and point-of-sale services is more suited to local businesses, Stripe is better suited to internet firms that require worldwide payment processing. 

Ultimately, the choice between the two platforms will depend on your specific business needs, including the volume of transactions you process, the level of customization you require, and the features you need to run your business efficiently.

If you’re looking for a reliable WooCommerce development service to help you integrate Stripe, Square, or any other payment processor with your e-commerce platform, Seahawk is here to help. Our team of experienced developers can help you optimize your online store and streamline your payment processing, so you can focus on growing your business.

Contact us today to learn more about our WooCommerce development services and how we can help take your e-commerce store to the next level.

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