Square vs Plaid

The small business savior that makes payments a breeze, but watch out for those sneaky fees meets the api that turns 'i need bank data' into 'i have bank data' without the regulatory headache. Here's our take.

Square

Nice Pick

The small business savior that makes payments a breeze, but watch out for those sneaky fees.

Pros

• Dead-simple setup with no technical skills required
• All-in-one ecosystem from POS to payroll
• Transparent pricing with no long-term contracts

Cons

• Transaction fees can add up fast for high-volume sales
• Limited customization options for larger businesses

Plaid

The API that turns 'I need bank data' into 'I have bank data' without the regulatory headache.

Pros

• Handles bank authentication and data aggregation across thousands of institutions
• Simplifies compliance with financial regulations like PSD2 and GDPR
• Provides real-time transaction and balance data with high reliability

Cons

• Can be expensive for high-volume applications due to per-request pricing
• Limited customization for specific bank integrations or niche use cases

The Verdict

Use Square if: You want dead-simple setup with no technical skills required and can live with transaction fees can add up fast for high-volume sales.

Use Plaid if: You prioritize handles bank authentication and data aggregation across thousands of institutions over what Square offers.

The Bottom Line

Square wins

The small business savior that makes payments a breeze, but watch out for those sneaky fees.