Square vs. PayPal Statistics 2025: Who Wins in Fees, Hardware & Global Reach

Imagine you’re a small business owner at your local farmer’s market. One customer pulls out their phone to tap and pay via a QR code, while another inserts a chip card into a sleek white reader. Behind the scenes, two giants, Square and PayPal, are competing for your transaction. Whether you’re accepting in-person payments or selling through an e-commerce platform, your choice between these platforms impacts everything from fees to settlement times.

As 2025 unfolds, we’re seeing new trends in how businesses and consumers use Square and PayPal. This article breaks down the most current data, presented with clarity, relevance, and structure, to help you compare and decide.

Most Integrated Payment Platforms by IT Companies

• Stripe leads the market, integrated by 80.1% of IT companies, thanks to its robust APIs and developer-friendly tools.
• PayPal follows closely, used by 74.3% of companies for its wide global reach and brand recognition.
• Shopify Payments comes third with 41.5% integration, especially among e-commerce-focused IT firms.
• Square and Klarna are equally popular, each integrated by 17% of IT companies.
• Braintree, a PayPal-owned service, is used by 15.2%, offering flexible payment gateway solutions.
• HubSpot Payments and Mollie are tied with 8.8% adoption each, indicating niche but growing usage.
• BitPay, a cryptocurrency payment processor, is chosen by 7.6% of firms embracing digital assets.
• Adyen is integrated by 5.8%, favored for its enterprise-grade solutions and global processing support.
• Helcim, a newer option, is used by only 2.3% of companies.
• Other payment options collectively account for 7.4%, reflecting varied and custom integrations beyond mainstream providers.

Square vs PayPal at a Glance

• PayPal remains the more widely adopted platform globally, with 435 million active consumer and merchant accounts as of Q1 2025.
• Square, by comparison, had around 76 million active users in 2025, primarily focused on US-based businesses.
• The average transaction size for Square is $42.73, while PayPal’s is significantly higher at $68.20 in 2025, reflecting its stronger B2C presence.
• Square leads in SMB penetration, with 1 in 3 US small businesses using a Square reader or app in 2025.
• PayPal boasts an 86% global checkout conversion rate in 2025, compared to 79% for Square.
• Square’s Cash App now supports over 57 million active users monthly in 2025, many of whom are business-adjacent users.
• Square’s ecosystem (including banking tools) was adopted by 12% more new business accounts in 2025 than in the prior year.
• PayPal Zettle, its point-of-sale competitor to Square, has grown usage by 19% in 2025, particularly in the UK and Latin America.
• Square services over 4 million active businesses globally in 2025, while PayPal supports 35 million merchant accounts.

Pricing and Transaction Fees

• Square‘s standard in-person transaction rate is 2.6% + 10¢, unchanged in 2025, maintaining simplicity for small businesses.
• PayPal charges 2.99% + 49¢ per domestic transaction for online payments as of 2025, higher than Square’s in-person rate.
• Square’s invoice payment processing fees remain at 2.9% + 30¢ for online invoices in 2025.
• PayPal’s Micropayments option still charges 4.99% + 9¢, ideal for digital content sales under $10.
• PayPal now offers 3.49% + 49¢ for “Advanced Credit and Debit Card” payments, targeting higher-risk online sales in 2025.
• Square’s Instant Transfer feature costs 1.75% of the transfer amount, with funds settling within minutes.
• PayPal’s instant withdrawal fee is now 1.5%, with a minimum fee of 25¢ and a maximum of $15, effective in 2025.
• Square’s ACH payment rate remains at 1%, favorable for large invoice-based businesses.
• Recurring billing through Square costs 2.9% + 30¢, while PayPal charges the same for recurring subscription billing in 2025.
• PayPal’s nonprofit discount rate remains 1.99% + 49¢, making it competitive for donation-based transactions.

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PayPal User Base by Country

• The United States leads with 278.1 million PayPal users, making up the largest national user base worldwide.
• Germany ranks second with 137.7 million users, showcasing strong adoption in the European market.
• The United Kingdom follows with 56.2 million users actively using PayPal services.
• Italy has a significant yet smaller share with 21.9 million users.
• France rounds out the top five with 20.5 million PayPal users.

Hardware Costs and Options

• The Square Reader (magstripe) remains free in 2025 for new businesses, while the Square Reader for Contactless and Chip is $59.
• The Square Terminal, an all-in-one device, is priced at $299, with optional monthly installment plans starting at $27/month.
• Square Register, their premium POS, is offered at $799, including dual displays and built-in software.
• PayPal Zettle’s contactless card reader is now priced at $29 for new signups in 2025, after promotional discounts.
• Square’s hardware sales revenue grew 21% in 2025, reflecting continued adoption in physical retail.
• Zettle supports third-party accessories, while Square’s ecosystem is optimized for proprietary hardware, enhancing integration.
• Square offers hardware bundles with stands, printers, and cash drawers starting at $699 in 2025.
• PayPal’s Zettle POS app is now pre-installed on Samsung Galaxy Tab A9 bundles sold for retail checkout use.
• Square added NFC payment options to its Kitchen Display System in 2025, appealing to restaurants.
• Square’s hardware is available in Canada, Japan, Australia, and the UK, while Zettle has a broader European footprint.

International Payment Statistics

• PayPal supports 200+ markets and 25 currencies globally in 2025, making it the most internationally accepted digital wallet.
• Square processes cross-border payments in 8 major currencies, with expanded support for AUD and GBP in 2025.
• 27% of PayPal’s transaction volume in 2025 came from international payments.
• Square’s international growth led to a 15% increase in overseas transaction volume in 2025, primarily from the UK and Australia.
• PayPal handles automatic currency conversion at an average fee of 3%, while Square applies a fixed 2.75% markup.
• Square is now compliant with PSD2 and Strong Customer Authentication (SCA) regulations for its European operations.
• In 2025, 14% of Square merchants received payments from foreign customers.
• PayPal’s “Pay in 4” feature is now active in 5 new countries, including Ireland, Austria, and New Zealand.
• Square’s Cash App is still US-only, while PayPal supports peer-to-peer transfers across 100+ countries.
• In 2025, PayPal is the preferred platform for 71% of US-based Etsy sellers who sell internationally.

Stripe Market Share by Region

• North America dominates Stripe’s market with a commanding 70.2% share, making it the platform’s strongest region by far.
• The European Union (EU) holds a significant 15.8% market share, reflecting strong adoption across Europe.
• Asia-Pacific (APAC) accounts for 7.9%, indicating growing usage in tech-driven Asian markets.
• Other regions collectively represent 3.8%, showing a modest but notable presence outside core markets.
• Latin America (LATAM) contributes 1.5% to Stripe’s global market, with room for expansion.
• Africa has the smallest share at 0.8%, suggesting minimal penetration in the region for now.

Point-of-Sale (POS) Usage Rates

• Square’s share of the US mobile POS market reached 68% in 2025, continuing to lead among micro and small businesses.
• PayPal’s Zettle has gained 12% market share among small retailers using Android tablets for checkout in 2025.
• 41% of new Square users in 2025 are retail businesses with fewer than 10 employees.
• Square Appointments, the POS solution for salons and service-based businesses, saw 35% YoY growth in 2025.
• PayPal Zettle’s restaurant adoption rate increased 18% year-over-year in 2025, especially among fast-casual chains.
• 72% of Square merchants now use integrated POS systems with inventory management as of 2025.
• Square’s use in farmers’ markets and pop-up shops remains dominant, with over 62,000 such vendors onboard in 2025.
• Square’s POS systems now support Apple Tap to Pay on iPhone in 2025, eliminating the need for additional readers.
• PayPal’s Zettle integration with QuickBooks POS increased adoption in accounting-heavy small enterprises by 24%.
• Square leads in POS systems for the food truck industry, with over 33,000 active accounts in that sector in 2025.

Supported Payment Methods

• Square now supports Apple Pay, Google Pay, Samsung Pay, and all major debit/credit cards by default on every POS device.
• PayPal continues to lead in digital wallet flexibility, supporting PayPal Credit, Venmo, crypto, and even Pay Later options globally.
• In 2025, 92% of US Square merchants accept contactless payments.
• PayPal Checkout supports over 30 alternative payment methods depending on region, including Sofort, iDEAL, and Bancontact.
• 41% of Square’s POS customers added Buy Now, Pay Later (BNPL) services in 2025, leveraging Afterpay integration.
• PayPal‘s BNPL usage in the US reached 29 million active users in 2025, a 16% increase from the prior year.
• Square added gift card capabilities to its free POS app, resulting in a 23% spike in gift card redemptions in Q2 2025.
• PayPal added Apple Pay as a checkout option on desktop and mobile browsers for US merchants in early 2025.
• Square sellers now support crypto payments via third-party integrations such as BitPay and OpenNode.
• In 2025, 85% of online PayPal purchases in the US were made using a saved payment method, streamlining checkout speed.

Credit Card Network Market Share Overview

• Visa holds the largest market share at 48.8%, nearly half of all card network usage.
• MasterCard follows with a strong 31.3%, making it the second-most widely used card network.
• American Express accounts for 9.2%, catering primarily to premium and business cardholders.
• Discover represents 10.7%, maintaining a niche but stable share of the market.

Mobile Payment and App Usage

• Cash App, owned by Square, hit 57 million monthly active users in 2025, marking a 9% YoY increase.
• PayPal’s mobile app remains one of the top 10 most-used finance apps in the US, with 84 million monthly active users in 2025.
• Square POS app usage grew by 22% in 2025, especially in food service, where it’s used by over 170,000 businesses.
• PayPal’s Venmo platform surpassed 94 million users in 2025, and 43% of users transacted with a business at least once a month.
• 65% of Square app users in 2025 now log in via biometric authentication.
• Cash App Pay now accounts for 17% of all Square mobile checkout transactions in the US.
• In 2025, 51% of Gen Z users preferred Venmo over direct debit for P2P payments.
• Square’s business mobile dashboard app is used by 2.4 million sellers for real-time sales tracking in 2025.
• PayPal introduced voice-command-enabled checkout in 2025, with pilot adoption across 3.2 million US-based accounts.
• Square Loyalty mobile tools drove a 34% higher return rate from customers in small business loyalty programs in 2025.

E-commerce Integration Statistics

• In 2025, 71% of Square’s merchants operate both online and offline sales channels.
• PayPal is integrated into over 87% of US e-commerce platforms by default, including Shopify, BigCommerce, and WooCommerce.
• Square’s online store tool is used by 1.6 million merchants in 2025, often bundled with appointment booking or ordering features.
• PayPal saw a 22% rise in Shopify transactions using PayPal Express Checkout in 2025.
• Square Online Checkout links, used in social media selling, were responsible for 11% of total Square online transactions in 2025.
• PayPal’s Smart Payment Buttons saw a 14% improvement in checkout conversion rate for US SMBs in 2025.
• 23% of Square online sellers now use third-party integrations like Wix or GoDaddy.
• In 2025, PayPal launched enhanced APIs for subscriptions and upsells, leading to a 17% higher AOV for integrated brands.
• Square’s integration with Instagram Shopping is now used by 60,000+ merchants for native checkout flows.
• Square’s use in ghost kitchens and virtual brands expanded by 45% in 2025, aided by seamless e-commerce integrations.

Global Market Share of Online Payment Processing Software

• PayPal dominates the global market with a commanding 41.87% share, making it the most widely used online payment processor.
• Stripe holds the second-largest share at 19.45%, favored for its developer-friendly tools and global reach.
• Shopify Pay Installments follows with 12.47%, reflecting its growing influence in the e-commerce space.
• Amazon Pay accounts for 4.76%, benefiting from its integration with the Amazon ecosystem.
• Afterpay, a popular BNPL platform, holds a modest 2.13% share.
• Other providers collectively represent 19.32%, indicating a diverse landscape of smaller players in the payment processing market.

Invoicing and Recurring Billing Data

• Square’s invoicing platform processed over $6.3 billion in invoice payments globally in 2025.
• PayPal’s recurring billing tools were used by 1.4 million merchants in 2025, spanning both B2B and B2C sectors.
• 62% of Square invoice payments are now completed within 2 days, reflecting higher trust and faster client response.
• PayPal launched Smart Subscription APIs in early 2025, helping brands improve renewal rates by 18%.
• Square’s invoice automation tools triggered a 39% increase in on-time payments among service businesses in 2025.
• PayPal reports that 16% of its business transactions in 2025 were recurring or subscription-based.
• Square now supports milestone billing for creative professionals and contractors, introduced in Q1 2025.
• Square’s recurring billing setup grew 33% year-over-year, largely driven by wellness, education, and coaching services.
• PayPal merchants using Smart Invoicing saw a 21% decline in payment disputes in 2025.
• The average invoice paid via Square in 2025 was $248, compared to $381 for PayPal, indicating different customer bases.

Payout and Deposit Times

• Square offers next-business-day deposits as standard, used by 89% of its merchants in 2025.
• Instant Transfers from Square to bank accounts occur in under 30 minutes, with a 1.75% fee.
• PayPal’s Standard Transfer to bank accounts takes 1-3 days, while Instant Transfers cost 1.5%, capped at $15.
• In 2025, 92% of Square users reported high satisfaction with payout reliability.
• PayPal’s Instant Deposit service was used 4.2 billion times in 2025, primarily by US sellers.
• Square supports weekend and holiday instant deposits for eligible banks starting mid-2025.
• PayPal’s transfer to PayPal Debit Mastercard continues to offer immediate fund access, used by 18 million users.
• Square now allows automated daily, weekly, or monthly payouts, which are used by 29% of merchants.
• Square’s Cash App-linked businesses can access funds from Square payments instantly, with no third-party banking delay.
• PayPal added real-time payout notifications in 2025, helping sellers track cash flow more transparently.

Industry Breakdown of Companies Using PayPal

• Retail is the top industry using PayPal, accounting for 34.67% of companies or 154,050 businesses.
• Manufacturing follows with 9.08% and 40,368 companies using the platform.
• Construction represents 8.45% with 37,540 companies.
• Non-profit organizations make up 7.66%, with 34,050 users.
• Food & Beverage businesses comprise 7.14%, totaling 31,706 users.
• The Hospital & Healthcare sector contributes 7.01% with 31,142 companies.
• Religious Institutions use PayPal at a rate of 6.81% or 30,245 companies.
• Health, Wellness, & Fitness represents 6.73%, involving 29,904 companies.
• Apparel & Fashion makes up 6.70% with 29,779 users.
• Computer Software rounds out the list with 5.75% and 25,562 companies.

Chargeback and Fraud Statistics

• Square’s chargeback rate remained under 0.35% in 2025, well below the industry average.
• PayPal’s chargeback rate averaged 0.65%, slightly higher due to its broader consumer focus.
• Square’s Seller Protection covered over $96 million in dispute-related payouts in 2025.
• PayPal flagged 37 million suspicious transactions in 2025, with an estimated $1.7 billion fraud exposure prevented.
• Square’s AI-based fraud detection reduced false declines by 27% year-over-year in 2025.
• In 2025, PayPal’s Resolution Center handled 42% of disputes within 5 days.
• Square introduced auto-refund triggers for duplicate or rapid-fire card attempts, leading to 31% fewer refund-related support tickets.
• PayPal rolled out real-time SMS dispute alerts in Q2 2025, now used by 14 million users to preempt fraudulent claims.
• 73% of Square merchants said they feel “highly protected” from fraud compared to 52% for PayPal sellers.
• Square’s fraud detection algorithms are updated every 36 hours, based on real-world seller behavior and disputes.

Customer Satisfaction Ratings

• In 2025, Square holds a Net Promoter Score (NPS) of 48, indicating strong customer loyalty among small business users.
• PayPal scored a lower NPS of 31, with mixed feedback from both merchants and consumers.
• 86% of Square users rated the product experience as “excellent” or “very good” in the most recent satisfaction survey.
• Only 67% of PayPal sellers expressed high satisfaction, largely due to concerns over dispute handling and fees.
• Square received a Trustpilot rating of 4.5/5 based on over 23,000 verified reviews in 2025.
• PayPal’s rating dropped to 3.6/5 on Trustpilot in 2025, primarily due to customer support-related complaints.
• Square Appointments, its niche scheduling tool, earned a 92% approval rating among beauty and personal care professionals.
• 52% of PayPal business users said they would consider switching providers in 2025 if simpler pricing alternatives were available.
• Square’s onboarding process scored 89/100 for ease of setup, compared to 73/100 for PayPal.
• Square’s dispute resolution satisfaction climbed to 78% in 2025, while PayPal’s remained at 61%.

Number of Websites Using Stripe by Country

• The United States dominates with 715,735 Stripe-powered websites, highlighting its strong adoption in North America.
• The United Kingdom comes second with 82,464 websites using Stripe.
• France ranks third with 53,044 Stripe-enabled sites.
• Germany follows closely with 40,116 websites.
• Australia hosts 37,869 websites using Stripe, showing solid uptake in the Asia-Pacific region.
• Canada has 26,388 Stripe-integrated sites.
• Italy accounts for 22,779 websites using Stripe.
• Spain follows with 19,060 Stripe-enabled websites.
• India features 15,376 websites, reflecting emerging adoption in South Asia.
• Mexico rounds out the list with 12,993 Stripe-powered sites.

Security and Compliance Metrics

• Square achieved PCI DSS Level 1 compliance renewal for the 11th consecutive year in 2025.
• PayPal maintains FISMA and ISO/IEC 27001 certifications globally, with annual audits completed in Q1 2025.
• Square’s fraud detection system flagged 17 million high-risk transactions proactively in 2025.
• PayPal’s internal security systems blocked over 1.7 billion bot attempts targeting account takeovers in 2025.
• In 2025, Square began rolling out biometric login options on POS devices, with 68% of businesses enabling it.
• PayPal’s two-factor authentication (2FA) adoption rate hit 91% among business users in the US.
• Square updated its data encryption standards to AES-256, aligning with banking-grade protocols.
• PayPal introduced device fingerprinting features in 2025, now applied to 82% of user sessions.
• Square’s compliance help desk responded to 42,000+ inquiries about tax reporting and KYC in 2025.
• PayPal integrated real-time AML screening into merchant onboarding, reducing risky account approvals by 28%.

Customer Support Metrics

• Square resolved 72% of support tickets within 24 hours in 2025.
• PayPal’s resolution time averages 2.1 days, with complex disputes extending up to 6 days.
• Square’s live chat feature is used by 41% of merchants monthly, offering an average response time of 3 minutes.
• PayPal’s call support wait times averaged 7.8 minutes in 2025.
• 87% of Square merchants reported being “satisfied” or “very satisfied” with support experience.
• Only 63% of PayPal merchants said the same, with frustration over account limitations and ticket escalation delays.
• Square added 24/7 live phone support for Premium sellers in mid-2025, resulting in a 19% drop in support churn.
• PayPal introduced AI-based help center navigation in 2025, used by 12 million users in its first 6 months.
• Square’s multilingual help center content was expanded to 9 languages, covering 95% of international traffic.
• PayPal Community Forum grew to 3.2 million active members, contributing to peer-assisted support resolutions.

Business Types: Who Uses Which?

• Square is most popular with small local businesses: 43% of US-based cafes, salons, and retail shops use Square in 2025.
• PayPal dominates with online-first businesses; 79% of Etsy sellers and 65% of eBay merchants use PayPal.
• 26% of Square users are in the food and beverage industry, making it their top merchant category.
• PayPal is preferred by B2B invoicing businesses, accounting for 38% of its merchant base in 2025.
• Square’s appointment-based businesses grew by 34%, driven by service verticals like beauty, wellness, and tutoring.
• PayPal is used by 84% of non-profit donation platforms, benefiting from its discounted transaction fees.
• In 2025, Square saw a 19% increase in usage among mobile businesses like food trucks and pop-up vendors.
• PayPal Commerce Platform was adopted by 61% of digital product sellers using WooCommerce or custom-built platforms.
• Square saw a 41% growth in usage among independent fitness instructors and coaches.
• PayPal is the go-to for international freelance platforms, used by 76% of Upwork and Fiverr payouts in 2025.

Volume Discounts and Enterprise Plans

• Square offers custom pricing for businesses processing over $250,000/year, which now includes free POS hardware bundles.
• PayPal’s enterprise tier begins at $1 million/year in volume, with access to dedicated support and lower rates.
• Square’s enterprise merchants reported 18% savings on fees after negotiating custom plans in 2025.
• PayPal enterprise clients get reduced rates down to 1.9% + 30¢, depending on monthly volume thresholds.
• Square introduced a dedicated account manager service for high-volume sellers in late 2025.
• PayPal added a Seller Success Team offering live consultations and onboarding for new enterprise clients.
• Square offers priority software beta access to enterprise clients, used by 12,000+ businesses in 2025.
• PayPal Payouts API volume grew by 22%, with key enterprise users automating mass payments across 75+ markets.
• In 2025, Square expanded its enterprise reporting dashboard, now featuring real-time sales anomaly alerts.
• PayPal rolled out enterprise chargeback insights in Q2 2025 to help reduce fraud disputes for subscription businesses.

Profitability and Stock Performance

• Block, Inc. (Square’s parent company) posted $23.1 billion in annual revenue for 2025, with $4.8 billion in gross profit.
• PayPal Holdings reported $32.4 billion in revenue and $6.2 billion in net income for 2025.
• Square’s gross payment volume increased by 12.4% YoY, compared to PayPal’s 6.9% rise in TPV.
• Cash App accounted for 38% of Square’s total revenue in 2025, a critical driver of growth.
• PayPal stock rose 11.7% year-to-date by July 2025.
• Block, Inc. stock gained 15.3%, outperforming NASDAQ’s average for fintech firms in 2025.
• Square’s R&D investment reached $1.1 billion, representing 4.7% of revenue, aimed at AI-powered payments.
• PayPal returned $5.5 billion to shareholders through stock buybacks and dividends in 2025.
• Square’s profitability margin stood at 21%.
• PayPal’s operating margin increased to 24.1% after restructuring and cost reductions.

Recent Developments & Forecasts

• Square acquired a small AI-based POS startup in March 2025, which is expected to enhance predictive sales analytics.
• PayPal launched Tap to Pay for Android in the US in Q1 2025, entering direct competition with Square’s hardware-free POS.
• Square launched Tap to Pay on iPhone integration across all major iOS devices in 2025.
• In May 2025, PayPal began testing stablecoin integrations for merchant settlements in partnership with Paxos.
• Square expanded into 3 new European markets in 2025, including Sweden, Denmark, and Belgium.
• PayPal’s new Business Analytics Suite, launched in June 2025, is now used by 400,000+ merchants.
• Square rolled out AI-powered checkout customization tools, enabling merchants to A/B test layouts in real time.
• PayPal announced its intent to acquire a Latin American payment firm by the end of 2025 to expand its regional footprint.
• Square Banking added new loan products with rates starting at 4.9% APR, targeting service businesses.
• Analysts forecast Square’s total payment volume to surpass $265 billion by the end of 2026, while PayPal is projected to hit $1.7 trillion.

Conclusion

In 2025, the race between Square and PayPal has evolved into a segmented sprint, with Square dominating physical retail and hybrid SMBs, while PayPal leads in global e-commerce and flexible digital finance. Each platform offers distinct advantages depending on your business model, payment volume, and growth plans. From hardware innovation and mobile adoption to subscription tools and international reach, businesses are now better positioned to select tools that scale with them.

As the market matures, expect both companies to double down on AI, real-time analytics, and user customization to retain merchants in an increasingly competitive payments ecosystem.