The process of running a new startup business has become more and more common in recent years. People are beginning to realize that all the resources are out there to launch their own startups whenever they want. Of course, it’s not exactly easy, but it’s something that is certainly more doable than it was a decade ago. Because of that, many more people are taking the plunge and choosing to launch their own businesses.
There are plenty of important areas when it comes to running and managing a business. And the most essential one is payment methods. Companies need to be as flexible as possible because this is how they secure sales and repeat business. And the good news for business owners is that technology is rapidly changing the face of modern business. Thanks to developments there are now multiple payment options that small companies can offer their customers. As well as the regular card and cash payments, there are also payment processing services such as Square and Stripe.
These have emerged over the past couple of years as two of the most popular and important payment processing services. Plenty of business owners around the world are making full use of them as much as possible. They have even had endorsement from big-name brands such as Starbucks! But, which is better, and which is right for what sort of business? Let’s investigate below by looking at the differences between the two to get an idea of which is the preferable choice.
What is Square and How Does it Work?
Square, Inc., to give the company its full title, is a financial services merchant that began as a mobile payment system. It was perfect for individuals in services based businesses, such as electricians, plumbers, and fast food trucks. The idea being that it made the whole payment process much easier. These people were able to take credit and debit card payments safely and securely, using simply their phones.
The company was co-founded by Twitter founder Jack Dorsey in 2010. And it started as a modest system to help small businesses operate on the go. It provided free adapt era that could be used remotely to take payments, and there was a fixed-rate processing fee. Since then the company has progressed and developed along with society. In 2013 they released the Square Stand, which allows businesses to use their iPads as registers. This has led to the company making headway with accredited businesses as well.
Square has obviously proven a huge hit in the business world, especially among small businesses. And it was recently valued in the region of $5 billion! The future looks bright for Square, and my well expand to service other nations outside of the United States, Canada, Australia, and Japan!
What is Stripe and How Does it Work?
As we know, Square provides mobile debit/credit card processing, but Stripe is a different kettle of fish. This is a service that provides solutions for web-based merchants. It is purely focused on online transactions rather than face-to-face payments. For that reason, it’s ideal for companies with an online store and strong internet presence.
In recent years we have seen a massive increase in the popularity of online shopping, and how widespread it is now. There’s no doubt that Internet shopping is winning the war against the high street. For that reason, Stripe has never been in a stronger position than it currently is. The service is invaluable for online developers who want to integrate payment processing options on their websites and stores. Anything from gig tickets to electronics can be bought using Stripe.
Stripe charges a higher transaction fee than Square, and this is likely due to the online nature and the increased risk of fraudulent use. However, there are plenty of benefits to Stripe, and, being valued at $3.5 billion shows how popular and successful the service is.
So, looking at the two different methods, it’s easy to see the advantages of both. But which is better? Well, the answer to that largely depends on the business you run. If you are a services based business, and you’re on the move at all times, Square is perfect. However, if you are a brick-and-mortar company with an online presence, you will want to try Stripe instead.