When comparing Payanywhere vs Square, they may appear interchangeable because they both offer a free card reader and an app with point-of-sale (POS) tools. Plus, the credit card processing fees are similar: Payanywhere charges 2.69% per transaction; Square, 2.6% plus 10 cents per transaction.
However, Square gets better reviews, offers better software, and generally provides a better value than Payanywhere, although small sellers with average sales below $20 will pay less in transaction fees by choosing Payanywhere.
- Payanywhere: Affordable option for small sellers consistently processing under $5,000 monthly with an average transaction value lower than $20.
- Square: Best for most small businesses, individuals, seasonal or occasional sellers, and those wanting free online and in-store POS systems.
Payanywhere vs Square Quick Comparison
 |  | |
Our evaluation* | 3.6 out of 5 | 4.43 out of 5 |
Best for | Small-volume sellers that want low processing fees | New or small businesses, brick-and-mortar shops, and businesses on a budget |
Monthly Fee | $0 | $0 |
Processing Fee | 2.69% to 3.49% plus 19 cents per transaction | 2.6% plus 10 cents to 3.5% plus 15 cents per transaction |
Invoice Fee | 3.49% plus 19 cents | 2.9% plus 30 cents, 3.5% plus 15 cents if processed using card on file, or 1% for ACH bank transfers |
Average Payout Speed | Free next-day funding; free same-day funding (for Smart Terminal users) | Free 1- to 2-day funding; instant funding for 1.5% |
Inactivity Fee | $3.99 per month after 12 months of inactivity | $0 |
Online Payment Options | Virtual terminal, payment links, and add to your native app | Square Online store, payment links, add checkout to an existing site, Facebook, Instagram, and virtual terminal |
POS Features | Basic phone app is free; to use on POS hardware starts at $9.95 per month | Basic POS is free; advanced available starting at $60 per month |
Integrations | Limited | Multiple apps in 16 categories |
Ease of Use | Good | Excellent |
Customer Service | Phone support, chat, email, social media, and resource library | Monday to Friday phone support, 24/7 automated chat support, seller community, and resource library |
Payanywhere Review | Square Payments Review |
*We include both Square and Payanywhere in our evaluation of best merchant services where Square took the top spot. Payanywhere did well but did not make our final list.
When to Use a Traditional Merchant Account
A brick-and-mortar store owner might want to consider opening an account with a merchant services provider instead of Square or Payanywhere to save on processing fees. Helcim, for example, offers some of the cheapest credit card processing rates for small businesses.
While using a payments app like Square or Payanywhere is easy and convenient, a traditional merchant account offered through a bank, such as Chase Payment Solutions, offers more security and stability and faster deposit times. Merchant accounts have a longer sign-up process, often charge fees, and may only work with businesses that make a minimum amount of monthly transactions—usually over $5,000.
Why Square Is Best for Most Businesses
Square tops our list of the best merchant services, best mobile credit card processors, and best POS systems for small businesses. It offers the best all-purpose payment and software solution for individuals, new businesses, and small businesses. In addition, it has advanced paid plans and tools for midsize businesses, from banking services to payroll, and offers custom solutions for large businesses, including reduced rates for high-volume sales. Thus, it can grow with you.
It is free and effortless to use and requires no application or commitment. See our guide to Square to learn more about its different product offerings to see if it’s right for your business.
See why Square tops so many of our evaluations:
- Best merchant services
- Best mobile credit card processing
- Best POS systems
- Best mobile POS
Best for Affordability: Square
| | |
Monthly POS Subscription | $0 to $39.95 | $0 to $299 with add-on programs |
Card Reader Pricing | $59.95 | $0 to $49 |
Terminal and Register Pricing | $249.95 to $949.95 plus setup fees and POS software subscription | $299 to $799 (all-inclusive) |
Card-present Transaction Fees | 2.69% | 2.6% plus 10 cents |
Ecommerce Transaction Fees | 3.49% plus 19 cents | 2.9% plus 30 cents |
ACH Transaction Fees | 3.49% plus 19 cents | 1% processing fee, minimum $1* |
Chargeback Fees | Not disclosed | Waived up to $250 per month |
*ACH payments available only through Square Invoices.
Learn more about Square’s costs in our detailed guide to Square fees and pricing.
The processing fees are similar, but if you need more hardware than a simple card reader, Square is by far the cheaper option. Its terminals are well-regarded by users and come with the software free. Payanywhere charges a subscription fee for software on its devices and has a $3.99 per month inactivity fee (after 12 months) if you stop using the app without canceling your subscription.
When Payanywhere Might Be More Affordable
Payanywhere’s 2.69% processing fee seems higher than Square’s 2.6% plus a 10-cent transaction fee. For most businesses, it is. However, for sellers with average sales below $20, such as cafes selling cups of coffee, Square’s fee per transaction would be higher than Payanywhere’s additional 0.09% charge per transaction. So, for merchants with low price points, Payanywhere could be more economical.
Best for Payment Processing: Square
| | |
Best for | Low-volume sellers with average sales under $20 | Most individuals and small businesses |
High-volume Discounts | Moves you to its merchant account, which is a different contract | Discounted rates for merchants processing over $250,000 in annual credit card sales |
Payment Types | Credit card, debit card, and contactless payments | Credit card, debit card, contactless payments, gift cards, and ACH |
Invoicing | Simple, recurring, and autopay | Simple, recurring, and autopay |
Virtual Terminal | Included | Included |
Card-on-File | Included | Included |
Payment Card Industry (PCI) compliance | Included | Included |
Our scores for Payanywhere and Square in other articles make Square a clear winner. Both Square and Payanywhere offer flat-rate and transparent pricing for new and small merchants. Once your business starts to grow, Payanywhere will switch you over to a traditional merchant account that uses a tiered pricing model. Generally, we don’t recommend tiered pricing models for small businesses because they can be unpredictable. Learn more about Payanywhere’s pricing and plan options.
Quick Response (QR) codes payments are now a popular in-person payment option you can find in almost every mobile payment app. Payanywhere launched QR code payments on its platform in September of last year while Square’s have been available since the early days of the COVID-19 pandemic. Square also now uses QR code technology for online ordering.
Meanwhile, Square does not offer tiered pricing. However, it offers custom discount rates for businesses processing over $250,000 annually. If your business does process this much, it’s likely neither Square nor Payanywhere is your best option. See our list of the best merchant services for small businesses to find the right payment solution for you.
Are you looking for a simple mobile-based payment method? Both Square and Payanywhere (recently added feature) offer text-to-pay payment methods. This allows you to send payment requests directly to your customer’s mobile device via text messaging.
Best for POS App: Square
| | |
Best for | Small and midsize businesses (SMBs) with low-price transactions | Startups, seasonal businesses, solopreneurs, budget-minded small businesses; custom solutions for large businesses |
Industry-specific Software Options | One all-purpose POS with two themes” “terminal” and “retail | All-purpose, retail, restaurants, and appointments, CBD retail |
POS Features | Basic register, inventory, customer management, employee management; free for phone; monthly subscription if you use hardware | Free basic register, inventory, customer management, employee management; plans include advanced features, and add-on programs add more functions |
Checkout Features | Split tender, open tabs, discounts, tips, digital receipts, and refunds | Split tender, open tabs, discounts, tips, digital receipts, refunds, chargeback protection; simplified checkout for consumers with Cash App |
Product Catalog | Items, categories, modifiers, discounts, low stock alerts, barcode scanning, phone barcode scanning, reports | Variations, photos, inventory tracking, low-stock alerts, reports, barcode scanning |
Customer Management | Customer information and purchase tracking | Customer information and purchase tracking, loyalty features, marketing |
Employee Management | Time clock, scheduling, labor forecasts, employee roles with permissions, and track sales by employee | Time clock, permissioning, can add on Square Payroll and Team Management |
Integrations | QuickBooks and Homebase; need application programming interface (API) for others | Hundreds of apps in 16 categories |
Square is the clear winner when it comes to sales features and functionality. While Payanywhere provides the basics for in-person and online transactions, Square offers many more online sales and customer management features.
Square offers some of the best POS systems for small businesses. (Source: Square)
Square is a recognized leader in sales for both in-store and online. Its free POS system is powerful enough for busy retailers and restaurants but simple enough for the hobbyist who only sells a few items at the farmers market. In 2019, it opened its services to cannabidiol (CBD) businesses. It offers more features than Payanywhere for customer support, and the paid plans have even greater functionality.
To see all of Square’s app features, read our Square POS review.
New Square Feature: Buy Now, Pay Later (BNPL)
As of January 2022, Square Online sellers can now offer BNPL payments through Square’s integration with Afterpay, which was acquired by Block, Inc. (Square’s parent company). Before that, Square also launched a redesigned Square POS app, which allows users to tailor checkouts and navigation flows specifically for their unique business process.
This includes the ability to:
- Add customers seamlessly to your sales at checkout
- Customize the item grid and main menu
- Create open tickets (both for retail and restaurants)
- Refund payments to a gift card and more
When to Use Payanywhere
One handy feature Payanywhere offers that Square does not is mobile barcode scanning. Scan the barcode with your phone, and it can pull up the product. This barcode scanner can save you money on equipment and make it easier for employees on the floor to look up items for a customer.
Otherwise, Payanywhere is good when it comes to brick-and-mortar or mobile sales—but not on the level of Square. It does not offer a loyalty program, and most extra functions like marketing will require third-party integrations. Further, its online offerings are weak, consisting of only payment links and a virtual terminal.
New Payanywhere Features: Upgrade to Payanywhere Payments Hub
Payanywhere recently announced the launch of updates to the Payments Hub (Payanywhere’s merchant platform) which now includes the functionalities that allow you to:
- Create a branded customer payment portal
- Save a customer’s card on file from the Virtual Terminal or Invoice feature
- Send itemized invoices
- Set email notifications for invoice tracking
Best for Ease of Use: Square
| | |
Apple App Store rating | 4.3/5 based on 1,100-plus reviews | 4.8/5 based on 341,000-plus reviews |
Google Play Store rating | 3.7/5 based on 4,400-plus reviews | 4.8/5 based on 171,000-plus reviews |
Phone and support email | Monday through Friday, 8 a.m. to 9 p.m. Eastern time; Saturday and Sunday, 8 a.m. to 6 p.m. Eastern time | Monday through Friday, 8 a.m. to 5 p.m. Pacific time |
Online resources | Knowledge base with guides and video tutorials | Knowledge base with guides, videos, articles, and a seller community forum |
Setting up and using Payanywhere and Square are equally easy, but when you get to the reliability of each payment processor, you can break that tie and give the win to Square. Just comparing how intuitive each app is designed, Square pulls ahead.
Square Is a Household Name for a Reason
Square became a household name because it brought payment processing to the small sellers without access to a merchant account—and it made it ridiculously easy to accept credit card payments. The app has easy-to-learn menus and categories, and the language used makes sense.
The user experience (UX) is an essential part of an intuitive interface, and Square gets it right with its POS app. You can create new items for your inventory, apply a discount to sales, and set up sales tax without having any prior experience.
Square gets points for designing an app that’s not only user-friendly but also stable. I’ve never had it freeze or crash and payments always go through.
Payanywhere Is Easy to Set Up But Can Be Unreliable
Getting started with Payanywhere is easy enough. If you choose the Pay As You Go plan, you’ll choose the reader you want and fill out a form with your contact information; then you can sign in and start setting up your profile and inventory. The Payanywhere app is easy to use, and it includes a Test Drive feature, which allows you to try it out before you commit.
As it applies to apps and payment processing software, intuition is such a subjective thing. But when comparing Payanywhere to Square, it doesn’t quite hit the intuitive mark. You can switch between a typical terminal view and retail view, and it isn’t immediately obvious where to go to find inventory (Payanywhere labeled this setting “Themes”).
Despite how easy Payanywhere makes it to start accepting credit cards for payment, it has some issues. The app often freezes, won’t load photos, and crashes—and you have to kill the app, then restart it to use it again. These are the sorts of glitches you don’t need when you’re trying to accept someone’s credit card, and you could quickly lose a customer’s trust.
Best Hardware: Square
Square and Payanywhere boast similar hardware offerings, with mobile card readers for the phone, a handheld mobile terminal, and a standalone terminal. Hardware prices are also somewhat similar but Payanywhere’s software for its smart terminals are an add-on cost.
When to Choose Payanywhere
Since our last update, Payanywhere removed its 2-in-1 mobile card reader which they offer for free for new merchants. Its 3-in-1 card reader is still available for $59.95 and is ideal for business owners who prefer a more handy, single device to carry around when accepting payments on the go. Payanywhere also offers a more ergonomic terminal that is easier to carry than the Square Terminal.
- Square Mobile Card Readers
- Square Terminals
- Payanywhere Mobile Card Readers
- Payanywhere Smart POS
Square Magstripe Card Reader | Square Contactless and Chip Card Reader | Square Terminal |
|---|---|---|
 |  |  |
First free, additional $10 | $49 | $299 or $27 per month for 12 months |
Available with lightning or audio jack input; accepts payments via magstripe (swiped) | Connects via Bluetooth; accepts payments via EMV (chip) or near-field communication (NFC) like Apple Pay or Google Pay | All-in-one credit card machine with POS, card reader, and receipt printer |
New and improved Square Terminal: Square recently made upgrades to its Square Terminal by making this hardware available to its merchants using the Square Retail and Square Appointments software. Square Terminal also now has an offline mode so users can complete transactions and accept payments even without an internet connection.
Square Stand | Square Register |
|---|---|
 |  |
$149 or $14 per month for 12 months | $799 or $39 per month for 24 months |
All-in-one credit card machine with POS for iPads and built-in card reader | Fully integrated POS system with a detachable customer display; accepts chip cards and contactless payments |
3-in-1 Bluetooth Credit Card Reader | Payanywhere Smart Keypad (Several models available) |
|---|---|
 |  |
$59.95 | $249.95 to $449.95 plus $9.95 to $19.95 per month software fee |
Connects via Bluetooth; accepts payments via EMV (chip) or NFC (Apple Pay, Google Pay) | All-in-one credit card reader with POS |
Payanywhere Smart Flex | Payanywhere Smart POS+ |
|---|---|
 |  |
$549.95 plus $49.95 setup fee and $19.95 per month software fee | $949.95 plus $99.95 setup fee and $39.95 per month software fee |
All-in-one credit card machine with POS, card reader, and receipt printer | Fully integrated POS system with attached customer display, card reader, and printer; accepts chip cards and contactless payments; Android only |
Bottom Line
In the battle of Payanywhere vs Square, you could go either way because the two payment processors are so similar and competitive. The free basic POS apps from both companies are easy to use and close to equal in their offerings. Square, however, offers more in terms of functionality, stability, and ease of use.
It is an excellent payment processor and free POS system for any individual or small business owner. It includes support for ecommerce sellers and mobile and storefront sellers. You can get started accepting payment as soon as you create an account with Square. Sign up for free today.
FAQs
Is there a better payment processor than Square? ›
PayPal's mobile credit card processing rates (via PayPal Zettle) are lower than Square's per-swipe rate. QR code transactions (over $10) even get a discounted rate. So it's great for small sellers that take cards in person. Plus, being able to accept PayPal and Venmo payments could open you up to more customers.
Is Square payment the best option? ›Square is our pick as the best credit card processor for small businesses in 2021. It has good rates, uses the flat-rate pricing model, and doesn't charge any monthly or annual fees for its basic processing service.
What is better then Square? ›Square alternatives include PayPal Zettle, SumUp, Shopify and others.
What is the difference between Square and PayPal? ›While they both allow you to process payments and charge similar fees, they have key distinctions that will make a difference depending on your business. Square is better suited for in-person and mobile transactions, while PayPal is best suited for e-commerce and online payments.
Who is Square's biggest competitor? ›- Payment Depot: Best for High-Volume Businesses.
- Stripe: Best for Fast Payments.
- Helcim: Best for Businesses on a Budget.
- Elavon: Best for Omnichannel Businesses.
- Gravity Payments: Best for Customer Support.
- Best for High-Volume Sellers: Stax.
- Best Low-Volume Rates: National Processing.
- Best Tiered Processing Fees: Merchant One.
- Best for PayPal and Venmo: PayPal.
- Best for Specialty POS Needs: Clover.
- Best for QuickBooks Users: QuickBooks Payments.
When compared to Shopify and Vend by Lightspeed, Square is the only one with zero monthly fees and a basic hardware included. The downside is it doesn't provide 24/7 phone support.
What is cheaper Square or PayPal? ›PayPal's hardware prices are pretty comparable to Square's, though Square is a bit more expensive. However, PayPal charges a number of fees that Square doesn't – like a $20 chargeback fee and a $30 monthly fee for a virtual terminal. Winner: Overall, Square has the best pricing options between the two companies.
Which company is better than square? ›Clover: Best Square alternative for low-cost, industry-specific POS. PayPal Zettle: Best alternative for PayPal users with storefronts. Helcim: Best discounted payment processing for large-volume sales. Stripe: Best Square competitor for online payment processing.
How do I avoid square fees? ›Square sellers using Afterpay get paid the full amount at the time of purchase, minus a processing fee on the total order. Enabling Afterpay with Square is free — there are no monthly fees or startup costs. You only pay when you make a sale.
Does square take a percentage of sales? ›
What are your fees? The Square standard processing fee is 2.6% + 10¢ for contactless payments, swiped or inserted chip cards, and swiped magstripe cards.
Can Square beat PayPal? ›If you're seeking the most affordable option for your business, there's no doubt that PayPal wins. By offering 2.29% and $0.09 for a standard in-person transaction, PayPal beats the 2.6% and $0.10 offered by Square. Again, while this seems like a small difference in pricing, it can quickly add up over time.
Is there something better than PayPal? ›PayPal is a popular online payment system, but there are other options with similar services. Stripe, Skrill, and Square are some popular alternatives to PayPal.
Does Square have a monthly fee? ›Sell in person, online, over the phone, or out in the field. No setup fees or monthly fees — only pay when you take a payment. $0/mo.
What is the Square company controversy? ›Square was unfairly keeping money from them at an economically vulnerable time to protect its own bottom line, they said. That had thrown their small businesses into financial difficulties, they added, forcing them to lay off employees, cut expansion plans, take out loans and miss mortgage payments.
What businesses does Square not support? ›Betting, including lottery tickets, casino gaming chips, Fantasy Football, off-track betting, and wagers at races. Financial institutions offering manual or automated cash disbursements. Prepaid cards, checks, insurance or other financial merchandise or services.
What major companies use Square? ›| Company | Website | Country |
|---|---|---|
| Tumblr, Inc. | tumblr.com | United States |
| CONFIDENTIAL RECORDS, INC. | confidentialrecordsinc.com | United States |
| Meta Platforms, Inc | facebook.com | United States |
| Blackfriars Group | blackfriarsgroup.com | United Kingdom |
PayU. PayU is one of the top payment gateways in India, which supports 150+ modes of payment including UPI, net banking, debit and credit cards, and static and dynamic QR. The payment gateway allows businesses to accept payments in multiple currencies.
Which is the No 1 payment system in the world? ›1. PayPal. Paypal is an eCommerce payments platform designed to help people and companies to send and receive payments without providing financial information.
What are the top 3 payment methods? ›The three most common types of payment in today's market are credit cards, debit cards, and cash. Credit and debit card transactions involve fees paid by merchants to the card companies, but they tend to involve larger purchase amounts than cash transactions.
Are square fees high? ›
Square does not charge a monthly or annual fee. Instead, the company makes money through a percentage of every credit card transaction it processes. Square charges 2.6% plus 10 cents for most in-person transactions. However, if the card must be entered manually, it charges 3.5% plus 15 cents per transaction.
Is square a threat to banks? ›The real threat to community institutions comes from big, aggressive, payment companies that have penetrated deeply into banking. Both Square and PayPal are aggressive, deep-pocketed, tech-forward companies that have already penetrated deeply into banking.
Does square affect your taxes? ›Square is required to issue a Form 1099-K and report to the state when $600 or more is processed in card payments. These reporting thresholds are based on the aggregate gross sales volume processed on all accounts using the same Tax Identification Number (TIN).
Is square high risk? ›Square credit card processing is a valuable service for low risk merchants. A low risk merchant runs a company with consistent and non-regulated online transactions. These companies have few chargebacks and don't operate in risky verticals.
What problem is square trying to solve? ›Square initially started as a solution to a growing problem: mobile businesses without mobile payments.
Why is square uncool? ›Definition: If one does not attend a certain event, one is not “cool.” The expression be there or be square means that if one declines to attend an event, one is considered “uncool.” It implies that the event will be exciting. Someone who doesn't attend is boring.
Why is PayPal fee so high? ›The reason is that PayPal charges a fee for every payment that businesses receive, so the more payments businesses receive, the more fees they would have to pay. For domestic payments, you would pay 5% + $0.05 USD per transaction with micropayments pricing versus the standard fee of 2.9% + $0.30 USD per transaction.
Which payment method is cheaper? ›Across all merchants, debit cards remain significantly cheaper for businesses to accept than credit cards. The data also show that merchants are charged materially less for debit transactions that are processed via the eftpos network compared with the Mastercard and Visa networks.
Is Square good for big transactions? ›Large Transactions
All Square merchants have a per transaction limit of $50,000. If you'd like to accept individual transactions above $50,000 each, you'll need to split the payment into multiple installments. Make sure to record the receipt number and the total amount charged for each installment.
Rate & Fee Pricing
Square uses a bundled pricing model to bill its customers for credit card processing. This means it combines the three components of credit card processing costs into one single rate.
Who is Square's biggest customers? ›
...
- Girl Boss Sports.
- Starter Story.
- HUSKYBEARD.
- OceanZen.
- Goods That Matter.
- Crawford Denim and Vintage Co.
- ScrubzBody Skin Care Products.
- THE MAXBIT.
Shopify is a better choice for businesses that want to sell online, in-store or through social media and need an all-in-one solution. Square is better for businesses that need a simple way to accept payments and don't want to commit to a long-term contract.
Is there a minimum transaction fee for Square? ›When a customer makes a purchase through your Square Online Store, Square Online Checkout, eCommerce API, or pays an invoice online, the fee is 2.9% + 30 cents for cards or 1% with a minimum $1 per transaction for ACH bank transfers (via Invoices only).
Can I write off Square transaction fees? ›That's because Square takes a cut when it transfers funds to your bank account. But don't worry! You can write off these transaction fees as a business expense.
How much does Square charge to transfer to bank? ›Funds are sent to either your linked bank account or debit card for a 1.5% fee per transfer. Your funds will routinely be sent to your linked debit card 15 minutes after your close of day, every day. To use same-day transfer, you must have a minimum balance of $1 after Square's fees.
Does Square hold 30%? ›...
How Does it Work?
| 10% Reserve Hold | Square's 30% Rolling Reserve Hold |
|---|---|
| Reserved: $6,000 | Reserved: $18,000 |
PayPal charges 2.99% of the total transaction amount when sending or receiving money in exchange for goods and services. This is free, or 0%, for consumer-to-consumer transactions.
How do I pass on Square fees to customers? ›- From the Square Invoices app, tap create a new invoice.
- Tap Add a line item to apply a service charge.
- Select any preexisting service charges you want to apply to the invoice.
- Fill out the rest of your invoice and send it as you normally would.
Square offers better POS hardware and solutions, while Stripe is better for online stores. They both integrate with third-party tools. Stripe is better overall for integrating with third-party apps. They both offer a variety of customer support channels.
What is faster payment from Square? ›Fast transfers
When you take a payment with Square, you get your money in your bank account as soon as the next working day. Unlike with many other payment processors, this comes standard—no extra fees required.
Who is the competitor of Square Inc? ›
Square competitors include Intuit, Stripe, PayPal, Plastiq and First Data Corporation.
Is Apple pay better than Square? ›Apple Pay has 701 reviews and a rating of 4.73 / 5 stars vs Square for Retail which has 460 reviews and a rating of 4.68 / 5 stars. Compare the similarities and differences between software options with real user reviews focused on features, ease of use, customer service, and value for money.
How much does square cost per month? ›Square does not charge a monthly or annual fee. Instead, the company makes money through a percentage of every credit card transaction it processes. Square charges 2.6% plus 10 cents for most in-person transactions. However, if the card must be entered manually, it charges 3.5% plus 15 cents per transaction.
What are the disadvantages of Stripe? ›| Pros | Cons |
|---|---|
| Flat-rate, transparent pricing with no setup, cancellation or monthly fees. | Open API and tools may be difficult to use without software development expertise. |
| Supports a wide variety of payment methods and currencies. | Limited functionality for in-person retail businesses and restaurants. |
The Square standard processing fee is 2.6% + 10¢ for contactless payments, swiped or inserted chip cards, and swiped magstripe cards.
How do I avoid Square fees? ›Square sellers using Afterpay get paid the full amount at the time of purchase, minus a processing fee on the total order. Enabling Afterpay with Square is free — there are no monthly fees or startup costs. You only pay when you make a sale.