Comment PayPal Here se compare-t-il à Square?

Brian Roemmele

Brian Roemmele, Alchimiste et métaphysicien

Mise à jour il y a 342w · Voté par

Mike Townsend, Fondateur de ZingCheckout & Flowtab · L'auteur a des réponses 1.3k et des vues de réponse 11.9m

It is very, very early days at this point. Square is over a year old and is processing about $4.3 Billion dollars. PayPal "Here" is just an "announced" product that has only seen Beta usage. Thus the comparison one can make at this point is limited. I have addressed this in rather overwhelming detail here: La réponse de Brian Roemmele à Quelles sont les fonctionnalités et leur impact du nouveau lecteur de carte et système de paiement de PayPal?.

Comment PayPal Here se compare-t-il à Square?

With this in mind I will break down the more notable differences based on direct data I have. However, this is subject to revision at any time as PayPal rolls the actual product out and adjusts it and as Square deploys its rather interesting responses. How important each feature is to a particular merchant is debatable. It is safe to assume both products do the basic work of processing a Payment Card.

I have updated this post to reflect new reevaluations by my good friend Rocky (Rakesh Agrawal) and his reporting on the new Encrypting Square Card Reader ( I have written about this in detail here: What impact will Square's addition of encryption to its card reader have?.

Comparaisons de produits:

Comment PayPal Here se compare-t-il à Square?

Rate Comparisons:

  • PayPal = 2.70% or 1.70% For Swiped Cards
  • Square = 2.75% For Swiped Cards

Direct rate comparisons can be confusing. PayPal has a flat rate of 2.70% (or 1.70%) for swiped cards that currently offers a 1% Cashback (with caveats) to the merchant with no fixed transaction fee. Square is currently 2.75% for swiped cards with no fixed transaction fee.

But this is not really a fair comparison. PayPal requires the merchant to use a PayPal branded Debit Card to spend money the accumulated in the Merchant Account rather than withdrawing the amount. This card is free of charge but it keeps the merchant funds accumulated from the merchant account theoretically locked in PayPals's walled garden and allows PayPal to collect the Interchange fees when the card is used by the merchant to make purchases.

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The Interchange fees are passed through the Visa and MasterCard system and given back to the bank that issued the card, in this case The Bankcorp on behalf of PayPal. Thus to achieve the ideal 1.70% a merchant can not take the funds as cash but only as paid transactions. The merchant may have to wait months to collect the 1% cash back and thus this is perhaps more of a marketing system then a true realtime savings.

Example of a average merchant with 100% PayPal Debit Card Use:

1000 $ par mois avec les transactions 100,

PayPal $ 1000 x 1.70% (avec remise sur carte de débit PayPal avec remise en argent) = $ 17.00

Carré $ 1000 x 2.75% = $ 27.50

Potentiel différentiel = $ 10.70 x 12 = $ 128.40 par an


Example of a average merchant with 0% PayPal Debit Card Use:

1000 $ par mois avec les transactions 100,

PayPal $ 1000 x 2.70% (sans remise par carte de débit PayPal) = $ 27.00

Carré $ 1000 x 2.75% = $ 27.50

Potentiel différentiel = $ 0.50 x 12 = $ 6 par an

In reality the savings may be someplace in the middle at some point.


PayPal Here is in many ways at the place Square was about 9 months ago. The PayPal product is not nearly as refined as Square's product and perhaps it never will. I can not see PayPal being as focused as the Artists and Artisans at Square. PayPal also does not have a usable Cash Register system thus far and it will pretty much limit the level of merchants that will adopt the service. However the Register solution from PayPal is on the way.

Comparisons are a moving target and Square has a number of well thought out and timed response. Some may matter more to different segments of merchants.

There is no doubt that the market has changed in a very meaningful manner for all existing companies and companies that are planning to enter into the market. Assuming that wither Square or PayPal will back off is foolhardy. PayPal's entry has completely changed the dialog in this marketplace. However I can see about 10 things Square could do today to completely change the marketplace in a manner that would impact PayPal Here adoption in meaningful ways.

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The market in the US and the rest of the world is rather vast and could never have been dominated by any single company. In fact my calculations show it requires perhaps a dozen on the first tier alone.

The battle is really with the Merchant and not the consumer. Companies that truly understand what this means will have a higher degree of success. The companies that seek out true wisdom and empirical data will be far ahead of the curve. The rest of the issues are really secondary.

What direction this all takes is in the hands of the merchant. And they are practical and pragmatic and know more about what they do then anyone one else.

Shannon Vissers

Shannon Vissers, écrivain pour le marchand Maverick

Répondu il y a 103w · L'auteur dispose de réponses 100 et de vues de réponses 64.5k

PayPal Here is a bit more reliable and has better customer support. You also get your money a few days faster with PayPal Here (if you have a PayPal debit card). But on the other hand, PPH’s hardware is more expensive and it doesn’t have an “offline mode” or some other features Square has. You can find a more detailed comparison here: Paypal Here VS Square

Alex McKnight

Alex McKnight

Répondu il y a 331w

Here is my complaint with the "no fixed rate". Percentage can be really expensive.

Say I am a contractor making "smaller" sales in the $500-$10,000 range. losing a percetage of that, per trasaction, adds up to be huge. Hundreds of dollars a month out of my pocket. i wish they would give a fixed rate option to make this more viable for my company.

The current options are tailored to cheap retail purchases. And i believe these two companies are missing out on a huge market by neglecting the fixed rate option.

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Zach Abrams

Zach Abrams, Uniformément cofondateur.

Répondu il y a 342w

I think Brian's answer above is great. But right now we are just comparing square / PayPal's mobile POS offerings. It is also worth noting that PayPal has a more all encompassing front- and back-end solution.

PayPal has developed a significantly more sophisticated digital wallet / in-store shopping experience proposition. While today merchants may just be looking for ways to simply accept a credit card; tomorrow they will likely be seeking a means to transform their in-store experience (to attract and retain consumers, drive loyalty, and so on). As this transition occurs, PayPal's ability provide an all-encompassing mobile payment solution may prove to be a meaningful competitive advantage.

Sarah Knapp

Sarah Knapp

Répondu il y a 341w

Brian's answer really hits the nail on the head but here's kind of a cool article from Entrepreneur that gives some of the details of the two companies compared with two others in the mobile payment space -

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