Stripe vs Square: Online vs In-Person Payments 2026
Quick Comparison
| Stripe | Square | |
|---|---|---|
| Best For | Online-only businesses and SaaS products that need a fully custom checkout rather than a pre-built point-of-sale system. | Businesses with a physical location that also sell online and want one connected system instead of two. |
| Pricing | No free tier / pay-as-you-go (2.9% + 30¢ per transaction) | Free tier available / 2.6%+15¢ in-person, 3.3%+30¢ online on Free plan |
| Winner | Our Pick |
Tool Breakdown
Square
If your business takes payments both in person and online, Square's free POS and online software tier plus its lower in-person rate (2.6%+15¢) beats running two separate systems.
- Free software tier includes POS app, online store, invoicing, item library, and free business banking
- Lower in-person rate (2.6% + 15¢) than its own online rate, rewarding businesses with a physical storefront
- Plus and Premium plans lower fees further (down to 2.4% + 15¢ in-person) while adding loyalty and staff scheduling
- Online-only rate on the Free plan (3.3% + 30¢) is notably higher than Stripe's flat 2.9% + 30¢
- No long-term contract required, but the most competitive rates are gated behind paid Plus/Premium tiers
Stripe
Stripe is a developer-first payment processor offering deep API control over checkout and billing, built for online-only and custom payment flows.
- Flat 2.9% + 30¢ rate for online card payments with no setup or monthly fees
- Full API control over checkout, subscriptions, and billing logic
- No dependency on a point-of-sale ecosystem — built purely for software-driven payment flows
- No native point-of-sale hardware or in-person checkout flow like Square's
- No permanent free tier — every transaction carries a fee from day one
Frequently Asked Questions
Is Square cheaper than Stripe? +
It depends on how you take payments. Square's in-person rate (2.6% + 15¢ on the Free plan, down to 2.4% + 15¢ on Premium) is cheaper than anything Stripe offers, since Stripe doesn't process in-person card-present transactions. For online payments, Stripe's flat 2.9% + 30¢ is cheaper than Square's Free-plan online rate of 3.3% + 30¢, though Square's Plus/Premium online rate (2.9% + 30¢) matches Stripe exactly.
Does Square have a free plan? +
Yes — Square's Free plan includes the POS app, an online store or booking page, invoicing, and item library at no monthly software cost; you only pay processing fees per transaction. Stripe has no equivalent free software tier since it isn't a point-of-sale platform.
Can I use Stripe if I also need to take in-person payments? +
Stripe offers Stripe Terminal for in-person card-present payments, but it's a developer-built solution rather than an out-of-the-box POS app. If you need point-of-sale hardware and software ready to use immediately, Square is the more practical option for in-person sales.