Square, founded in 2009 by Jack Dorsey and Jim McKelvey, is a financial services and digital payments company that has grown from a simple mobile card reader solution into a comprehensive ecosystem for small businesses. Headquartered in San Francisco and now part of Block, Inc., Square aims to democratise access to financial tools traditionally reserved for larger firms. It is widely known for its user-friendly hardware, intuitive point-of-sale (POS) systems, and versatile software tailored to entrepreneurs and SMEs.
At its core, Square allows businesses to accept card payments using a mobile device and a small card reader. However, its offering has expanded significantly. Today, the company provides a broad suite of services including inventory management, employee scheduling, invoicing, online payments, payroll, and business loans via Square Capital. With the acquisition of Afterpay, Square has also entered the buy-now-pay-later (BNPL) space.
Square’s appeal lies in its simplicity, scalability, and integration. It is particularly popular among cafés, retailers, beauty salons, and service providers who value ease of use and all-in-one financial management. In 2025, as digital commerce and mobile-first operations dominate, Square continues to be a leading choice for small business owners looking for modern, affordable, and efficient payment and business solutions.
Key Features and Services
Square’s strength lies in its modular ecosystem, which offers essential tools that help small and medium-sized businesses manage everything from sales to staffing. The platform’s core product is its Point-of-Sale (POS) system, which includes both software and hardware. Square POS is easy to use, runs on mobile devices or Square’s own terminals, and enables businesses to accept card, contactless, and mobile wallet payments. The hardware includes portable card readers, countertop terminals, and registers that can suit different business sizes and types.
Beyond payments, Square provides a range of business tools.
- Square Online is a no-code website builder that allows businesses to sell online, sync inventory with physical stores, and offer delivery or click-and-collect options.
- Square Invoices and Appointments are ideal for service providers, enabling seamless billing and client scheduling.
- Square Payroll automates employee payments, tax filings, and benefits.
- Square Capital offers data-driven small business loans based on sales history.
- Square Loyalty and Marketing helps build customer relationships through SMS and email campaigns and rewards programmes.
Importantly, these features integrate smoothly, which reduces administrative burden. The intuitive dashboard gives business owners real-time visibility over sales, inventory, and customer insights. Whether running a market stall or a multi-location shop, Square’s offerings are designed to scale with the business’s needs.
Pricing and Fees
Square’s pricing model is transparent, predictable, and suitable for small businesses trying to avoid the complexities of traditional merchant service contracts. One of its core advantages is that there are no monthly fees for its basic POS system and online store builder, making it an attractive choice for startups and solo entrepreneurs.
Payment processing fees are standardised. In-person payments incur a fee of 2.6% plus 10 cents per transaction (US rates). Online payments and invoices are charged at 2.9% plus 30 cents. Manually entered card payments cost 3.5% plus 15 cents. These flat-rate fees are easy to understand and include all interchange and network costs. There are no setup charges, cancellation fees, or hidden costs. Additional services like Square Payroll or Square Marketing do carry monthly fees, typically based on usage or employee count.
Hardware is sold separately but is competitively priced. Entry-level card readers start at under $50, while a full Square Register costs several hundred dollars. For most small retailers and service providers, these costs are manageable and offset by Square’s simplicity and time-saving benefits. Compared to traditional payment processors, Square’s all-in-one pricing is often more cost-effective, especially for low-volume merchants who might otherwise face complex tiered pricing or minimum charges.
User Experience and Interface
Square has consistently received praise for its intuitive, user-friendly interface. Whether accessed via mobile app, desktop dashboard, or hardware device, the user experience is designed to be clear and frictionless.
This is one of Square’s major differentiators, particularly for small business owners who are not tech-savvy. Setting up a Square account is fast and straightforward.
Once logged in, users are greeted with a dashboard that offers a real-time overview of sales, inventory, customer data, and employee activity. Navigation is simple, and most features are accessible within a few clicks. The mobile app is well-optimised and allows full functionality on-the-go, which is ideal for market vendors, tradespeople, and service providers.
Square also offers excellent customisability. The POS layout can be adapted to suit different business types, whether selling coffee, retail goods, or salon services. Appointment booking, tipping options, discounts, and loyalty rewards can all be configured to match specific workflows.
Customer support is available through chat, phone, and an extensive help centre. The quality of support has improved in recent years, though some users have expressed frustration with delayed resolution times during peak periods. Overall, Square’s design philosophy prioritises ease of use and time savings. Making it accessible to everyone from sole traders to expanding SMEs.
Strengths and Weaknesses
One of Square’s greatest strengths is its end-to-end ecosystem. Rather than requiring multiple providers for POS, payroll, lending, and e-commerce, Square offers everything under one roof. This integration reduces administrative complexity and enhances decision-making through consolidated reporting.
The platform is also highly accessible. No credit checks are required to sign up, there are no long-term contracts, and the entry costs are minimal. Its hardware is sleek, reliable, and mobile-friendly, while the software adapts to a range of industries. Another key advantage is Square’s innovation and agility. It has been quick to adopt trends such as contactless payments, BNPL, and even cryptocurrency. The acquisition of Afterpay strengthens its offering for merchants looking to offer flexible payment terms.
However, Square is not without drawbacks. Its flat-rate fees, while predictable, can be more expensive than interchange-plus pricing for high-volume merchants. For businesses processing large transactions or seeking bespoke rates, competitors like Stripe or traditional processors may offer better terms. Customer service, although generally solid, has at times struggled with high demand. There is also a limit to customisation for very complex retail or hospitality setups. Square is not a full enterprise-grade ERP or POS replacement. Lastly, Square Capital’s lending is only available to eligible businesses, and the loan terms are fixed. While convenient, it may not be the most competitive form of financing.
Final Verdict
Square remains one of the most impactful fintech platforms for small businesses in 2025. It provides an unmatched combination of usability, flexibility, and affordability for business owners who need to manage payments, operations, and customer relationships in one place.
Its appeal lies in the simplicity of its ecosystem. Business owners without technical expertise can set up and run Square with minimal effort. The transparency of its pricing, the quality of its hardware, and the continued expansion of services like payroll and lending make it a compelling one-stop-shop.
That said, Square is best suited to startups, sole traders, and small-to-medium enterprises. Large enterprises or high-volume retailers may find more customisable solutions elsewhere. But for the millions of small business owners prioritising ease and modern functionality, Square continues to lead the way.
In a world where digital-first business operations are now the norm, Square’s platform empowers entrepreneurs to compete and thrive without needing a finance or IT department behind them.
