Stripe is built for online and software businesses; Square is built for in-person sellers - restaurants, retail, services - with hardware, scheduling, and payroll. Both have expanded toward each other but their core competencies remain distinct.
Stripe started as a payments API for developers and now spans billing, tax, treasury, and card issuing. Square started as a card-reader dongle for small in-person sellers and now spans a full commerce OS: POS, restaurants, appointments, payroll, and lending.
The overlap - online checkout - is real but each side optimizes differently. Stripe's online conversion and global reach are stronger; Square's in-person hardware, ease of setup, and small-business workflows are stronger.
Side-by-side comparison
| Attribute | Stripe | Square |
|---|---|---|
| Core strength | Online & in-app payments, developer tooling | In-person POS, hardware, vertical SaaS |
| Hardware | Stripe Terminal (limited) | Full POS, registers, kiosks, KDS |
| Pricing (US, published) | 2.9% + 30¢ online | 2.6% + 10¢ in-person; 2.9% + 30¢ online |
| Vertical products | Generic, API-driven | Square for Restaurants, Retail, Appointments |
| Banking / lending | Stripe Treasury, Capital | Square Banking, Loans |
| Best deployment | Cross-border SaaS, marketplaces | US/UK/CA/AU/JP small business |
Online businesses, SaaS, marketplaces, and developers building custom payment flows.
Restaurants, retail, and service businesses that need an integrated POS + payments + back-office in one box.
If you sell primarily online or through software, choose Stripe. If you sell primarily in person and want hardware that works out of the box, choose Square.
Frequently asked
Can I use Stripe for in-person payments?+
Yes, via Stripe Terminal, but the hardware lineup and vertical features are narrower than Square's.
Can I use Square for online checkout?+
Yes - Square Online and the Square Web Payments SDK are competitive for SMB online stores, especially if you already use Square in-person.
Sources & References
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