Square Invoices vs. PayPal Invoicing
Square Invoices vs. PayPal Invoicing: which is right for you?
Two popular apps, compared on what their own pages say. Checked November 2, 2026.
Both let you send invoices for free with no document limit and charge only when a customer pays online. Square's free plan charges 3.3% + 30¢ on online invoice payments (2.9% + 30¢ on its paid Plus and Premium plans). PayPal charges 2.99% + 49¢ for cards and Apple Pay, 3.49% + 49¢ when the customer pays with PayPal or Venmo, and 1% capped at $10 for Pay by Bank. Square fits businesses that also take payments in person; PayPal fits customers who already pay with PayPal or Venmo.
Side by side
| Square Invoices | PayPal Invoicing | Settle | |
|---|---|---|---|
| Price for unlimited documents | Free plan; Square Plus is $49 a month and Premium $149 a month per location, adding payment schedules, custom templates, lower fees and 24/7 phone support | No subscription. PayPal's help page says Invoicing has no set-up or monthly fees; you pay a fee when a customer pays online | Free: $0, no document limit |
| Limits on lower plans | No document limit listed | No document limit listed | None on any plan. AI drafts: 3 free, then Pro |
| Free plan | Yes | Yes. Creating and sending invoices is included with a PayPal account; fees apply when the customer pays online | Yes |
| Card payment fee | Online invoice payments: 3.3% + 30¢ on Free, 2.9% + 30¢ on Plus and Premium; in person 2.6% + 15¢ on Free | 2.99% + 49¢ for cards and Apple Pay; 3.49% + 49¢ when the customer pays with PayPal or Venmo; 1% capped at $10 for Pay by Bank. Fees page dated October 1, 2026 | Stripe's standard 2.9% + 30¢ paid to Stripe; Settle adds nothing |
| Payouts | Online payments must go through Square's own payment processing | PayPal processes the payment and the money lands in your PayPal balance. PayPal's user agreement says risk-based holds generally remain for up to 21 days; its help page says new sellers and sellers over a monthly limit may not get payments right away, and a hold on a service is released 7 days after you mark the order completed. A standard transfer to your bank is free and typically takes 1 to 3 business days; Instant Transfer costs 1.50% | Paid straight to your own Stripe account. Stripe sets payout timing and runs its own risk checks; Settle never holds the money |
| Scheduling and dispatch | Not listed on the invoices page | Not listed on the pages we checked (recurring invoices and automatic reminders only) | No |
| Platforms | iPhone, Android, web | iPhone, Android, web | iPhone only |
| Cancelling | Square's community pages describe exporting invoices and estimates to CSV from the Square Dashboard. Export before you close anything. | There is nothing to cancel. Before closing an account, move any balance out; PayPal can't close an account with a balance, and a closed account can't be reopened. | Subscription billed by Apple; cancel in your iPhone settings in two taps |
From each company's public pages and help centers, checked November 2, 2026. Confirm on their pages before you buy.
Choose Square Invoices if
- You also take card payments in person with a Square reader.
- You'd pay for Plus to get 2.9% + 30¢ online, payment schedules and custom templates.
Choose PayPal Invoicing if
- Your customers already pay with PayPal or Venmo.
- You want customers to pay in installments with Pay Later while you get paid in full.
- Customers will pay by bank, at 1% capped at $10.
A third option if you work alone
Settle is made for one person with an iPhone who mostly sends estimates and invoices. It's free with no document cap, you describe the job out loud and it writes the estimate with your own prices, and payments go to your own Stripe account. It has no scheduling, dispatch or crew logins. See Settle vs. Square Invoices and Settle vs. PayPal Invoicing.
Questions
Which is cheaper, Square Invoices or PayPal Invoicing?
Square Invoices: Free plan; Square Plus is $49 a month and Premium $149 a month per location, adding payment schedules, custom templates, lower fees and 24/7 phone support. PayPal Invoicing: No subscription. PayPal's help page says Invoicing has no set-up or monthly fees; you pay a fee when a customer pays online. The plans include different things, so compare features as well as price. Prices checked November 2, 2026.
Is Square Invoices or PayPal Invoicing better for a solo contractor?
On a $1,500 card payment, PayPal's 2.99% + 49¢ is $45.34 and Square's free-plan 3.3% + 30¢ is $49.80. Both process the payment themselves and can hold funds under their own rules. Settle sends payments to your own Stripe account at 2.9% + 30¢ ($43.80).
Is there an alternative to both Square Invoices and PayPal Invoicing?
Yes. Settle is a free iPhone app for solo contractors with no cap on estimates or invoices, and payments go to your own Stripe account. It has no scheduling, no crew logins and no Android or web app, so it only fits if you work alone on an iPhone.
Sources
Working alone? Try Settle.
Free on iPhone. Unlimited estimates and invoices. 7 days of Pro to try the voice drafts, and you cancel in two taps.
Download on the App StoreiPhone, iOS 17 or later. Questions? Text Nina: (818) 945-9686