Why look beyond Square
Square is widely recognized for its integrated point-of-sale (POS) systems and accessible payment processing, especially for small to medium-sized businesses and those with significant in-person transaction volumes. Its ecosystem includes hardware, online stores, and business management tools, providing a comprehensive solution for many merchants. However, businesses may seek alternatives for several reasons. For instance, companies with high transaction volumes or complex international operations might find Square's transaction fees less competitive or its customization options limiting for specific workflows. Enterprise-level businesses or those operating in niche markets may require more advanced fraud prevention, multi-currency support, or specialized reporting capabilities that go beyond Square's standard offerings.
Developers building highly custom platforms or marketplaces often look for APIs that offer greater flexibility and granular control over the payment flow, allowing for deeper integration into their existing software architecture. While Square offers a robust Payments API, other providers may specialize in developer-first solutions, offering extensive SDKs and webhooks tailored for complex integrations. Furthermore, businesses focused purely on online sales, subscriptions, or global market expansion might prioritize providers with stronger international payment gateways, broader payment method support, and localized acquiring capabilities. Evaluating these factors helps determine if an alternative payment processor aligns more closely with a business's evolving needs and strategic objectives.
Top alternatives ranked
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1. Stripe — Developer-first platform for online payments and subscriptions
Stripe is a payment processing platform designed for internet businesses, emphasizing developer tools and APIs. It provides a comprehensive suite of products for online payments, subscriptions, marketplaces, and fraud prevention. Stripe's API-first approach allows developers to integrate payment functionality directly into their applications with extensive customization options. It supports a wide range of payment methods, including credit and debit cards, mobile wallets, and local payment options across numerous countries. Businesses can use Stripe for one-time payments, recurring billing for SaaS products, and building complex marketplace payment flows. Its robust documentation and SDKs in multiple languages facilitate integration for various tech stacks. Stripe is often chosen by startups, SaaS companies, and e-commerce businesses that require a flexible, scalable, and globally capable payment infrastructure.
- Best for: SaaS billing, marketplaces, subscription products, highly customizable payment flows, global e-commerce.
Explore Stripe's API capabilities or visit the official Stripe website.
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2. PayPal — Widely recognized for online checkout and global transfers
PayPal offers payment solutions primarily focused on online transactions, recognized globally for its consumer wallet and merchant services. Its APIs enable businesses to accept payments via PayPal accounts, credit/debit cards, and other local payment methods. PayPal is particularly strong for businesses looking for quick integration for online checkouts, recurring payments, and facilitating international money transfers. Its brand recognition can instill trust in customers, and its dispute resolution services are well-established. PayPal provides various products, including standard checkout buttons, advanced API integrations for custom experiences, and solutions for invoicing and mass payouts. It serves a broad spectrum of businesses, from small online sellers to large e-commerce platforms, offering a balance of ease of use and developer flexibility for web and mobile applications.
- Best for: Online checkout experiences, recurring payments and subscriptions, global money transfers, integrating with existing e-commerce platforms.
Explore PayPal's API capabilities or visit the official PayPal developer documentation.
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3. Adyen — Enterprise-grade global payment processing platform
Adyen is a global payment platform that provides end-to-end infrastructure for accepting payments across online, mobile, and in-store channels. It is designed for large enterprises and fast-growing businesses that require a unified platform for managing global payments, risk, and data. Adyen supports a vast array of payment methods, including major credit cards, local payment options, and alternative payment methods, across numerous geographies. Its single platform approach helps simplify reconciliation and reporting for businesses operating internationally. Adyen offers advanced customization options through its APIs, allowing for deep integration into complex business systems. It is particularly suited for companies with high transaction volumes, multi-country operations, and those needing sophisticated fraud prevention and data analytics tools.
- Best for: Global e-commerce businesses, marketplaces and platforms, enterprise payment processing, high-volume transactions, unified commerce.
Explore Adyen's API capabilities or visit the official Adyen developer documentation.
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4. Checkout.com — Cloud-based payment solutions for global enterprises
Checkout.com offers a cloud-based payment processing platform designed for large enterprises and global businesses. It provides a unified platform to accept payments online and in-app, supporting a wide range of payment methods and currencies across over 150 countries. The platform emphasizes flexibility, scalability, and advanced fraud detection capabilities. Checkout.com's API-first infrastructure allows businesses to customize their payment experiences, integrate with existing systems, and access detailed transaction data for analytics. It is particularly beneficial for companies with complex international payment needs, high transaction volumes, and those requiring robust risk management tools. The platform aims to optimize authorization rates and reduce costs for merchants by offering direct connections to acquiring banks globally.
- Best for: Global e-commerce businesses, marketplaces and platforms, enterprise payment processing, high-volume transactions, advanced fraud management.
Explore Checkout.com's API capabilities or visit the official Checkout.com developer documentation.
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5. Toast — Integrated POS and payment platform for restaurants
Toast provides an all-in-one point-of-sale (POS) and restaurant management platform specifically tailored for the food service industry. While Square offers general POS solutions, Toast is purpose-built for restaurants, encompassing features like online ordering, delivery management, kitchen display systems, loyalty programs, and payroll, alongside payment processing. Its hardware is designed to withstand the demands of a restaurant environment. Toast's integrated system aims to streamline operations, enhance customer experience, and provide actionable insights for restaurant owners. It supports various restaurant types, from quick-service to fine dining, offering specialized tools that Square's broader POS might not cover in as much detail. For restaurant businesses, Toast offers a deeply integrated ecosystem that goes beyond just payment acceptance.
- Best for: Restaurants, cafes, bars, and food service businesses requiring specialized POS and management tools, integrated online ordering and delivery.
Explore Toast's platform capabilities or visit the official Toast website.
Side-by-side
| Feature | Square | Stripe | PayPal | Adyen | Checkout.com | Toast |
|---|---|---|---|---|---|---|
| Core Focus | SMB POS & Payments | Developer-first Online Payments | Online Checkout & Transfers | Enterprise Global Payments | Enterprise Global Payments | Restaurant POS & Management |
| Best For | Small to medium businesses, in-person & online payments, retail, food service | SaaS billing, marketplaces, subscription products, global e-commerce | Online checkout, recurring payments, global money transfers | Global e-commerce, marketplaces, high-volume transactions, unified commerce | Global e-commerce, marketplaces, high-volume transactions, advanced fraud | Restaurants, cafes, bars; specialized POS & management tools |
| Developer Experience | Well-structured docs, SDKs, sandbox | Extensive APIs, detailed docs, multiple SDKs, webhooks | API for checkout, subscriptions; good for quick integration | Customizable APIs, extensive documentation for complex integrations | Robust APIs, flexible integration, detailed transaction data | API for integrations, but primarily a bundled solution |
| Pricing Model | Transaction fees (2.6% + 10¢ in-person; 2.9% + 30¢ online) | Transaction fees (e.g., 2.9% + 30¢ for online cards) | Transaction fees (e.g., 3.49% + fixed fee for online) | Transaction fees + processing fees (custom for enterprise) | Transaction fees (custom for enterprise) | Subscription + transaction fees (custom for restaurants) |
| Global Reach | Limited international presence (US, CA, AU, JP, UK, IE, FR, ES) | Extensive (40+ countries for processing, 135+ currencies) | Global (200+ countries, 25+ currencies) | Global (acquiring in 100+ countries, 200+ payment methods) | Global (150+ countries, 150+ currencies) | Primarily North America (US, CA) |
| Hardware Options | POS hardware (readers, registers, terminals) | No proprietary hardware, supports third-party terminals | No proprietary hardware, supports third-party POS integrations | POS terminals, unified commerce hardware | No proprietary hardware, focuses on software integration | Restaurant-specific POS hardware (terminals, KDS, handhelds) |
| Key Features | POS, online store, payments API, invoicing, payroll | Payments, subscriptions, Connect (marketplaces), Radar (fraud), Issuing | Checkout, subscriptions, invoicing, Payouts, Braintree (gateway) | Payments, risk management, analytics, acquiring, unified commerce | Payments, fraud, analytics, acquiring, tokenization, open banking | Restaurant POS, online ordering, delivery, kitchen display, loyalty, payroll |
How to pick
Selecting the right payment processing alternative to Square involves evaluating your business model, technical requirements, and growth strategy. Consider these factors to make an informed decision:
Business Type and Volume
- For Restaurants: If you operate a restaurant, café, or bar, Toast offers a highly specialized, integrated POS system that outpaces Square's general offerings for food service. It includes features like kitchen display systems, table management, and specific restaurant reporting.
- For Online-Only or SaaS Businesses: If your primary revenue comes from online sales, subscriptions, or a SaaS model, Stripe is often the preferred choice due to its developer-first APIs, extensive customization, and robust support for recurring billing and marketplaces.
- For Businesses with High In-Person Sales (Non-Restaurant): While Square excels here, if you need more advanced inventory management or loyalty programs than Square offers, consider exploring other specialized retail POS systems that can integrate with a payment processor like Stripe or Adyen.
- For Small Online Sellers Needing Simplicity: If you need a quick and easy way to accept payments online without deep technical integration, PayPal offers familiar checkout experiences and simple buttons that can be set up rapidly.
Technical Requirements and Development Effort
- API-First Customization: For developers building custom platforms, marketplaces, or requiring granular control over the payment flow, Stripe, Adyen, and Checkout.com provide comprehensive APIs and SDKs that allow for deep integration and tailored user experiences.
- Ease of Integration: If you need a balance of customizability and quick setup, PayPal's developer documentation for its API can facilitate straightforward integrations for common use cases like online checkout and subscriptions.
- Existing Ecosystem Integration: If you're looking to integrate with an existing e-commerce platform (e.g., Shopify, WooCommerce), most major payment processors like Stripe and PayPal have pre-built plugins or extensions that simplify the process.
Global Reach and Payment Methods
- International Expansion: For businesses operating or planning to operate across multiple countries and requiring support for diverse local payment methods and currencies, Adyen and Checkout.com are strong contenders. They offer unified platforms for global acquiring and extensive payment method coverage.
- Broad International Acceptance for Online: Stripe also provides excellent international coverage, supporting payments in over 40 countries and processing in 135+ currencies, making it suitable for many global e-commerce ventures.
- Consumer Familiarity: PayPal's global brand recognition can be a significant advantage for international online sales, as many consumers worldwide are familiar and comfortable using it.
Pricing and Cost Structure
- Volume-Based Discounts: For high-volume businesses, Adyen and Checkout.com often offer custom pricing models that can result in lower per-transaction costs compared to standard flat rates.
- Transparent Transaction Fees: Stripe and PayPal generally have transparent, published transaction fees, making it easier to predict costs for many businesses. However, specific rates can vary based on volume and negotiation.
- Integrated Solution Costs: For systems like Toast, consider the total cost of ownership, which includes hardware, software subscriptions, and transaction fees, as it's a bundled solution.
Fraud and Risk Management
- Advanced Fraud Tools: If your business faces significant fraud risks, Adyen, Checkout.com, and Stripe offer sophisticated machine learning-driven fraud detection and prevention tools that can be customized to your risk profile.
- Dispute Resolution: All major payment processors have dispute resolution processes. Reviewing their policies and success rates for chargeback management can be an important factor, especially for industries prone to disputes.
By carefully weighing these considerations against your specific business needs, you can identify the payment processing alternative that best supports your operations and growth.