PayPal, Square, and Stripe in 2025: What You Need to Know

The big three payment aggregators have been making some changes. If you’re considering one of these platforms or already using one, here’s what’s actually happening in 2025.

The Fee Reality Check

Square recently raised their rates in February 2025. In-person transactions now cost 2.6% + $0.15 (up from $0.10), and their card-not-present rate is 3.50 +$0.15 which you must do some digging to find. For online transactions, they’re at 3.30% + $0.30 for their free plan.  Those numbers do come down a little by paying monthly for one of their higher tier plans, but their cheapest paid plan is $49.00 and only drops the in-person rate by 0.10%.

Stripe advertises 2.9% + $0.30 for online transactions, but there are catches. Stripe adds a 0.50%+ fee on recurring payments that many subscription businesses don’t discover until they’re already using it. PayPal on the other hand has the most complex pricing of the main aggregators and advertised rate can balloon to 3.49% + $0.49 depending on how the payment is processed.

For businesses processing $50,000 monthly, Square’s recent increase alone costs you an extra $1,500 per year. That’s before considering any other fees.

What They Don’t Advertise

All three have gotten stricter about holding funds and account verification. New businesses should expect documentation requirements and potential payment delays during the first few months. This is normal now, but it can create cash flow problems if you’re not prepared.

The flat-rate pricing model these platforms use sounds simple, but it rarely benefits businesses once you’re processing more than $10,000-$15,000 monthly. At that volume, you’re likely overpaying compared to what an interchange-plus pricing structure would cost you.

Understanding Your Real Options

These platforms are convenient for getting started quickly. They work well for very small businesses or those just testing whether they can accept cards profitably. The problem is that convenience comes at a premium that compounds as you grow.

If you’re processing significant volume, there’s usually a better way to structure your payment processing. Traditional merchant accounts with interchange-plus pricing typically cost less once you’re past the startup phase. The setup takes more effort, but the math works out better.

When These Platforms Actually Make Sense

PayPal can work well if your customers want to use it.  It’s easy to add as an additional checkout option giving your customers who want to use that service the option while also providing them with more cost-effective alternatives. Brand recognition helps some businesses, particularly online sellers on marketplaces. 

Square makes sense for very small brick-and-mortar businesses that need a basic integrated POS system and process under $10,000 monthly. Beyond that, that really makes sense to work with a full-service merchant provider.

Stripe works for developers building custom solutions or businesses with complex technical requirements. But most businesses don’t need what Stripe offers beyond basic payment processing.  Its another situation where most normal businesses could save more by looking at other alternatives.

The Bottom Line

The aggregator model is designed to be easy but expensive. It works for businesses where payment processing is an afterthought. But if you’re running a real business that processes meaningful volume, understanding your actual processing costs and structure usually reveals better options.

If you’re processing over $10,000 monthly and using one of these platforms, it’s worth getting your statements analyzed by someone who understands merchant processing. You might be surprised at how much you could save with a proper merchant account setup.

Every business is different, and sometimes the convenience is worth the premium. But make sure you’re choosing these platforms because they fit your needs, not just because they’re easy to sign up for.