Paddle vs Square
A detailed comparison to help you choose the right payment processing solution for your project.
Quick Verdict
Both tools are excellent choices with similar feature sets. Your decision should be based on pricing, ecosystem fit, and specific use case requirements.
Paddle
Merchant of record for SaaS
Best for
Square
Payments for omnichannel
Best for
Feature Comparison
| Feature | Paddle | Square |
|---|---|---|
| Card Payments | Yes | Yes |
| Subscriptions | Yes | Yes |
| Invoicing | Yes | Yes |
| Marketplace/Connect | No | No |
| No-code Options | Yes | Yes |
| Mobile SDKs | Yes | Yes |
| Global Payments | Yes As MoR | Yes Limited countries |
Pricing Comparison
Paddle
Square
Paddle Pros & Cons
Pros
- +Handles all tax compliance
- +Merchant of record (you're not liable)
- +Simple global selling
- +Good for digital products
Cons
- -Higher fees than Stripe
- -Less control over billing
- -Not suitable for physical goods
Square Pros & Cons
Pros
- +Great for in-person + online
- +Good POS system
- +All-in-one business tools
- +Easy onboarding
Cons
- -Less developer-focused
- -Limited global coverage
- -Not ideal for pure SaaS
Paddle Verdict
Paddle is perfect if you want to sell globally without worrying about VAT, sales tax, or entity setup. Worth the higher fees for the peace of mind.
Square Verdict
Square shines when you need both in-person and online payments. For pure online SaaS, Stripe is usually better.
More options in Payment Processing
Looking for different tradeoffs? Explore alternatives to each tool.
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Frequently Asked Questions: Paddle vs Square
Is Paddle or Square better?
It depends on your use case. Paddle is best for saas products selling globally and solo founders avoiding tax complexity. Square is best for omnichannel businesses and retail + online. Paddle is perfect if you want to sell globally without worrying about VAT, sales tax, or entity setup. Worth the higher fees for the peace of mind.
Is Paddle free?
No, Paddle does not have a free tier. Pricing starts at 5% + 50¢.
Is Square free?
No, Square does not have a free tier. Pricing starts at 2.9% + 30¢.
Can I migrate from Paddle to Square?
Yes, you can migrate from Paddle to Square, though the complexity depends on how deeply integrated your current solution is. Most developers recommend evaluating both tools in a test environment before committing to a migration.
Which is more popular, Paddle or Square?
Both Paddle and Square are popular choices in their category. The best choice depends on your specific requirements, team expertise, and budget rather than popularity alone.