Difference Between Square and PayPal Here

With a wide range of businesses growing online, businesses, as well as consumers need a wide range of payments methods including credit cards and contactless payments.


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Square and PayPal Here allow services to buy, sell and send money using either Apple or Android devices.

Square vs PayPal Here

The difference between Square and PayPal Here is that Square is more business-oriented and takes in-person transactions. On the other hand, PayPal Here is more online transaction-based. While PayPal here is a more household name amongst the users because of its popularity in making small payments online even to the small grocery shops, Square is not popular amongst big businessmen who have one-on-one transactions.

Square vs PayPal Here

Square was originated by Jack Dorsey and Jim McKelvey in 2009. They aspired to create technology that was capable of making services and mobile payments into a single easy to use service.

Square has two key features- its Cash App and Point of Sale system. Recently, the company also allowed businesses to use Bitcoin as a source of payment in the technology.

Whereas PayPal Here was originated by Peter Theil, Luke Nosek, and Max Levchin in 1998. They aspired to develop secure software to transact money for handheld devices.

However, they failed and switched to focus on a digital wallet. They also merged with Elon Musk’s x.com.

Elon had great faith in internet banking and online transactions of PayPal hence he terminated x.com’s internet banking operations and focused only on PayPal. Later, he became the company’s CEO.

Comparison Table

Parameters of ComparisonSquarePayPal Here
AdvantageBest for mobile and in-store payment.Best for online payment and e-commerce.
DepositsProcessed to bank account in 1-2 business days.Deposited immediately in online PayPal Here account.
Fee StructureSimpler as there is no differentiation between the countries of the payers.Complex as conversion fee is levied on payments if they are not an American Visa, Mastercard, Discover, or Amex card.
Selling ToolLoyalty and employee marketing.Customer Retention.
Global ReachNot widely used globally.Widely used globally.
DiscountNo discount for non-profit organization.Discount for non-profit organization.
Mode Offline and Online modes of transaction.Only Online mode of transaction.

What is Square?

Square is the ultimate guide for setting up any business. It is a free point of sale app that can be used by businesses to manage inventory, direct customer sales, and make sales reports to help retailers.

All you need is a credit card reader and cellphone to operate Square. Square also has three other POS products namely for Retail, Restaurant, and Appointments.

The company has its name from square shaped-card readers. The inspiration to make Square came from the fact that McKelvey couldn’t receive a transaction as he couldn’t accept credit cards.

The first product made by Square was the Square reader which was to accept credit card payments by connecting to a mobile device’s audio jack.

Square also produced Cash App which allows a person-to-person money transfer. The firm also released Square stand which turns the Apple Ipad into a Point of Sale system completely.

It also released BlueTooth connected reader and launched the Square Register for medium-sized businesses.

Square also opened its Market to bitcoin. In 2018, it allowed transactions via bitcoin on the Cash App. In 2020, Square invested millions in bitcoin, and in February 2021, the company purchased an additional $170 million bitcoin.


What is PayPal Here?

PayPal Here is a worldwide mobile application that is linked to your bank account to ease the process of money payment and acceptance.

It is a simple and secure app used to make business transactions easier. PayPal Here was originated in 2012 which was a mobile payment system including a free mobile app and card reader which plugged into a smartphone.

The company is headquartered in California, US, and is headed by Elon Musk, Luke Nosek, Peter Theil, Max Levchin, and Yu Pan. The company aims to smooth electronic financial transfers in big and small businesses as well as households.

PayPal is known for its sales tactics which lead to customer retention.

They introduced the student account from 2009 to 2016 which allowed parents to transfer money and use a debit card for student expenses. This promoted the app amongst students and parents.

PayPal also announced the use of cryptocurrencies such as Bitcoin, Litecoin, Ethereum, and Bitcoin which can be used to make daily transactions electronically.

paypal here

Main Differences Between Square and PayPal Here

  1. Square is best known for mobile and in-store payment. On the other hand, PayPal Here is best known for online payment and e-commerce.
  2. Deposits in Square are processed to a bank account in 1-2 business days whereas deposits are processed immediately in the PayPal Here Account.
  3. The fee structure for Square is simpler as compared to PayPal Here because Square doesn’t differentiate between the county in which the payer is situated. On the other side, PayPal Here has a complex structure because of the conversion fee it applies on payments if they are not an American Visa Mastercard, Discover, or Amex Card.
  4. Square has good sales because of its loyalty and employee marketing. PayPal Here has sales because of their customer retention.
  5. Square is not as widely used globally as compared to PayPal Here.
  6. Square offers no discount for Non-Profit Organizations whereas PayPal Here provides a discount for Non-Profit Organizations.
  7. Transactions are both online and offline for Square, unlike PayPal Here which only has an online mode of transaction.


  1. https://link.springer.com/chapter/10.1007/978-3-658-03251-7_7
  2. https://search.proquest.com/openview/8450aa56ca091cd84e24cb23338c31a0/1?pq-origsite=gscholar&cbl=43721
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