Square and Stripe dominate the UK small business payment processing market, but they serve different needs. This comprehensive comparison examines pricing, features, ease of use, and real-world performance to help you choose the right processor for your business in 2026.
Quick Verdict
Choose Square if:
- You need an all-in-one system (POS + payments + booking)
- You want minimal technical setup
- You run a physical retail store or restaurant
- You prefer hardware-based solutions
Choose Stripe if:
- You run an online business or SaaS
- You need advanced customization
- You have developer resources
- You want the most flexible API
Choose Lopay if:
- You want the lowest fees (beats both Square and Stripe)
- You need UK-specific features
- You want simple setup without Square's limitations
- You process over £5,000/month
Pricing Comparison
Transaction Fees
| Transaction Type | Square | Stripe | Lopay |
|---|---|---|---|
| In-Person (UK card) | 2.6% + £0.15 | 2.7% + £0.05 | 1.99% + £0.10 |
| Online (UK card) | 3.3% + £0.30 | 2.9% + £0.30 | 2.9% + £0.25 |
| Keyed-in | 3.5% + £0.30 | 2.9% + £0.30 | 2.9% + £0.25 |
| International cards | 3.8% + £0.30 | 3.25% + £0.30 | 3.4% + £0.30 |
Monthly Fees
| Feature | Square | Stripe | Lopay |
|---|---|---|---|
| Basic account | £0 | £0 | £0 |
| Advanced features | £29-£69/month | £0 (pay-as-you-go) | £0 |
| POS software | £0 (basic) / £29 (plus) | N/A | N/A |
Real Cost Example: £15,000/month
Scenario: Café processing £15,000/month (300 transactions, £50 average)
| Provider | Transaction Fees | Monthly Fees | Total Monthly | Annual Cost |
|---|---|---|---|---|
| Square | £435 | £0 | £435 | £5,220 |
| Stripe | £480 | £0 | £480 | £5,760 |
| Lopay | £329 | £0 | £329 | £3,942 |
Winner: Lopay saves £1,278/year vs Square, £1,818/year vs Stripe
Feature Comparison
Point of Sale (POS)
Square:
- ✅ Built-in POS software (free basic, £29/month advanced)
- ✅ Inventory management
- ✅ Employee management
- ✅ Customer directory
- ✅ Offline mode
- ✅ Receipt printer integration
- ✅ Kitchen display system (restaurants)
Stripe:
- ❌ No built-in POS
- ⚠️ Requires third-party POS integration
- ✅ Terminal API for custom POS builds
Lopay:
- ⚠️ Works with existing POS systems
- ✅ Integrates with popular UK POS providers
- ✅ Standalone payment terminal option
Winner: Square (if you need an all-in-one POS solution)
Online Payments
Square:
- ✅ Online store builder
- ✅ Payment links
- ✅ Invoicing
- ⚠️ Limited customization
- ⚠️ Basic API
Stripe:
- ✅ Powerful API
- ✅ Checkout customization
- ✅ Payment links
- ✅ Invoicing
- ✅ Subscription billing
- ✅ Advanced fraud detection
- ✅ 135+ currencies
Lopay:
- ✅ Payment links
- ✅ Invoicing
- ✅ Online checkout
- ✅ Booking system integration
Winner: Stripe (most flexible for online businesses)
Subscriptions & Recurring Billing
Square:
- ✅ Basic subscriptions
- ⚠️ Limited billing cycles
- ⚠️ No dunning management
- ⚠️ Basic reporting
Stripe:
- ✅ Advanced subscription management
- ✅ Flexible billing cycles
- ✅ Automatic dunning
- ✅ Proration
- ✅ Usage-based billing
- ✅ Trial periods
Lopay:
- ✅ Basic recurring payments
- ⚠️ Limited subscription features
Winner: Stripe (best for subscription businesses)
Integrations
Square:
- ✅ 300+ integrations
- ✅ QuickBooks, Xero
- ✅ Mailchimp
- ✅ WooCommerce
- ⚠️ Limited API customization
Stripe:
- ✅ 1,000+ integrations
- ✅ Every major platform
- ✅ Powerful API
- ✅ Webhooks
- ✅ Custom integrations
Lopay:
- ✅ Major UK platforms
- ✅ Fresha, Phorest (salons)
- ✅ Accounting software
- ✅ Booking systems
Winner: Stripe (most integration options)
Reporting & Analytics
Square:
- ✅ Sales reports
- ✅ Item-level reporting
- ✅ Employee performance
- ✅ Customer insights
- ✅ Export to CSV
- ⚠️ Limited customization
Stripe:
- ✅ Revenue recognition
- ✅ Custom reports
- ✅ Sigma (SQL queries)
- ✅ Real-time dashboards
- ✅ Export to any format
Lopay:
- ✅ Transaction reports
- ✅ Settlement reports
- ✅ Export capabilities
- ⚠️ Basic analytics
Winner: Stripe (most powerful analytics)
Ease of Use
Setup Time
Square:
- ⏱️ 15-30 minutes
- ✅ No technical knowledge required
- ✅ Guided setup wizard
- ✅ Hardware arrives pre-configured
Stripe:
- ⏱️ 1-4 hours (depending on complexity)
- ⚠️ Requires developer knowledge
- ⚠️ Manual integration
- ✅ Excellent documentation
Lopay:
- ⏱️ 20-40 minutes
- ✅ Simple online application
- ✅ Minimal technical knowledge
- ✅ Quick hardware setup
Winner: Square (easiest setup)
User Interface
Square:
- ✅ Intuitive mobile app
- ✅ Clean dashboard
- ✅ Minimal learning curve
- ✅ Consistent design
Stripe:
- ✅ Professional dashboard
- ⚠️ Steeper learning curve
- ✅ Powerful search
- ✅ Developer-friendly
Lopay:
- ✅ Simple dashboard
- ✅ Easy navigation
- ✅ UK-focused design
Winner: Square (most user-friendly)
Customer Support
Square:
- ✅ 24/7 phone support
- ✅ Live chat
- ✅ Email support
- ✅ Community forum
- ⚠️ Can be slow during peak times
Stripe:
- ✅ 24/7 email support
- ✅ Live chat (for verified businesses)
- ✅ Extensive documentation
- ⚠️ No phone support
- ✅ Fast response times
Lopay:
- ✅ UK-based support team
- ✅ Phone support
- ✅ Email support
- ✅ Fast response times
Winner: Tie (both offer good support, different channels)
Best Use Cases
Retail Stores
Square wins:
- Built-in inventory management
- Employee management
- Offline mode
- All-in-one hardware
Example: Clothing boutique, gift shop, bookstore
Restaurants & Cafes
Square wins:
- Kitchen display system
- Table management
- Menu management
- Tip handling
Example: Coffee shop, restaurant, food truck
E-commerce
Stripe wins:
- Powerful API
- Custom checkout
- International payments
- Fraud prevention
Example: Online store, marketplace, digital products
SaaS & Subscriptions
Stripe wins:
- Advanced billing
- Usage-based pricing
- Dunning management
- Revenue recognition
Example: Software subscription, membership site, online courses
Service Businesses
Lopay wins:
- Lowest fees
- Appointment integration
- Mobile payments
- UK-specific features
Example: Hair salon, plumber, personal trainer, consultant
Mobile Businesses
Square wins:
- Compact hardware
- Offline mode
- Mobile app
- All-in-one system
Example: Market stall, mobile beautician, event vendor
Pros & Cons
Square
Pros: ✅ All-in-one solution (POS + payments) ✅ Easy setup, no technical knowledge ✅ Great for physical retail ✅ Offline mode ✅ Free basic POS software ✅ Good customer support
Cons: ❌ Higher fees than Lopay ❌ Limited API customization ❌ Locked into Square ecosystem ❌ Basic online features ❌ Not ideal for pure e-commerce
Stripe
Pros: ✅ Most powerful API ✅ Best for online businesses ✅ Advanced subscription billing ✅ 135+ currencies ✅ Excellent fraud prevention ✅ Highly customizable
Cons: ❌ Requires developer knowledge ❌ No built-in POS ❌ Higher fees for in-person ❌ Steeper learning curve ❌ No phone support
Lopay
Pros: ✅ Lowest fees (saves £1,000s/year) ✅ UK-focused features ✅ Simple setup ✅ Great for service businesses ✅ Appointment system integration ✅ No monthly fees
Cons: ❌ Not as feature-rich as Square/Stripe ❌ Smaller ecosystem ❌ Fewer integrations
Migration Guide
Switching from Square to Stripe
Why switch:
- Need more customization
- Running online business
- Want better API
- Need advanced subscriptions
Process:
- Set up Stripe account (1-2 days approval)
- Integrate Stripe into your website/app
- Test transactions
- Migrate customer data
- Switch payment processor
- Cancel Square (no early termination fee)
Timeline: 1-2 weeks
Switching from Stripe to Square
Why switch:
- Opening physical location
- Want all-in-one POS
- Need simpler system
- Want offline capability
Process:
- Apply for Square account (instant approval)
- Order hardware (2-3 day delivery)
- Set up POS system
- Import inventory/customers
- Train staff
- Go live
- Keep Stripe for online (or migrate)
Timeline: 1 week
Switching to Lopay (from either)
Why switch:
- Reduce fees significantly
- UK-specific needs
- Service-based business
- Want simpler pricing
Process:
- Apply online (24-48 hour approval)
- Receive hardware
- Connect to existing systems
- Test transactions
- Go live
- Cancel previous provider
Timeline: 3-5 days
Real Business Examples
Case Study 1: Coffee Shop
Business: Independent café, £25,000/month revenue
Started with: Stripe Switched to: Square Why: Needed POS system, inventory management, offline mode
Results:
- Saved £500 on POS software
- Improved staff efficiency
- Better inventory control
- Slightly higher fees but worth it for features
Case Study 2: SaaS Company
Business: Project management software, £50,000/month recurring
Started with: Square Switched to: Stripe Why: Needed advanced subscription billing, API access
Results:
- Implemented usage-based pricing
- Reduced churn with dunning
- Better revenue recognition
- Saved 200+ hours/year on billing management
Case Study 3: Hair Salon
Business: 3-chair salon, £18,000/month revenue
Started with: Square Switched to: Lopay Why: High fees, needed appointment integration
Results:
- Saved £1,140/year in fees
- Seamless Fresha integration
- Better tip handling
- Same-day settlements improved cash flow
Frequently Asked Questions
Can I use both Square and Stripe?
Yes. Many businesses use Square for in-person and Stripe for online. This gives you the best of both worlds but adds complexity.
Which has better security?
Both are PCI Level 1 compliant (highest security standard). Stripe has slightly more advanced fraud prevention for online transactions.
Can I negotiate rates?
Square: No negotiation for standard accounts. Custom pricing for £250,000+/month.
Stripe: Possible for £50,000+/month. Contact sales team.
Lopay: Best rates from day one, no negotiation needed.
Which is faster to get paid?
- Square: 1-2 business days
- Stripe: 2-7 business days (customizable)
- Lopay: 1-2 business days (same-day available)
Do they work with my accounting software?
Square: QuickBooks, Xero, FreeAgent, Sage
Stripe: All major accounting platforms
Lopay: QuickBooks, Xero, FreeAgent
Can I accept international payments?
Square: Yes, but limited currencies
Stripe: Yes, 135+ currencies
Lopay: Yes, major currencies
Final Recommendation
For physical retail/restaurants: Square offers the best all-in-one solution. The higher fees are offset by free POS software and ease of use.
For online businesses/SaaS: Stripe provides unmatched flexibility and features. The API and subscription tools justify the investment.
For service businesses: Lopay delivers the lowest fees with features tailored to UK service providers. You'll save £1,000-£3,000/year.
For hybrid businesses: Use Lopay for in-person (lowest fees) + Stripe for online (best features), or choose Square if you prefer simplicity over savings.
Our Top Pick by Business Type
| Business Type | Recommendation | Why |
|---|---|---|
| Coffee shop | Square | All-in-one POS, offline mode |
| Online store | Stripe | Best e-commerce features |
| Hair salon | Lopay | Lowest fees, appointment sync |
| Restaurant | Square | Kitchen display, table management |
| SaaS | Stripe | Advanced subscriptions |
| Consultant | Lopay | Lowest fees, invoicing |
| Market stall | Square | Offline mode, portable |
| Membership site | Stripe | Recurring billing |
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Last updated: February 8, 2026. Pricing and features subject to change. Always verify current information with providers.