SumUp vs Square: which is best for face-to-face and online merchants?

Square and SumUp offer similar products to small businesses, but I’ve seen crucial distinctions as I’ve tested and reviewed them in the UK.

American Square was the first to introduce an app-based card reader in 2009; then German SumUp launched their own in 2012. SumUp targeted European merchants who wanted to get paid simply, while Square pioneered easy access to payment tools – two sides of the same coin, but it shapes their products differently.

Both are now suited for in-person and remote payments with ecommerce options. So what are the potential deal-breakers?

Very different card readers

The payment platforms sell different card machines: some that work with an app and others that work on their own.

If you’re not familiar with an app-based terminal, it’s basically a card reader that connects with your phone or tablet over Bluetooth. It doesn’t accept any cards without the app and phone’s 4G or WiFi, which can feel slightly awkward initially, but not for long.

I’ve personally seen merchants frustrated with a poor Bluetooth connection, but the widespread popularity of SumUp’s and Square’s card readers prove to me that they work for most people.

So what are the card reader options here?

SumUp’s Air reader connects to an iPhone, iPad or Android tablet or smartphone with SumUp App. It uses the mobile device’s internet connection to process payments online and keep transactions synced in the cloud. SumUp Air has a flat glass keypad for PIN entry and accepts chip and contactless card payments.

Square Reader also connects to an app on a compatible mobile device with any of the Square POS apps downloaded: the free Point of Sale (iPad, iPhone or Android), Square for Restaurants (iPad only), Retail (iPad or iPhone) or Appointments (iOS or Android).

Unlike SumUp Air, Square Reader does not have a physical keypad, so customers have to enter their PIN in the app on your phone or tablet, which might feel awkward for some.

Then you have the standalone card terminals that are more expensive because they connect directly to the internet to process payments.

The SumUp Solo card reader does this through a built-in SIM card with unlimited data for 4G connectivity – and it connects to WiFi too. This means you can take card payments anywhere with internet, even if the mobile network is weak.

Although it has a pretty touchscreen instead of physical buttons, Solo’s functions are quite basic: you simply enter the transaction amount on the screen, tap or insert a card and send a digital receipt following a transaction.

Square has one standalone card machine: Square Terminal. It only works with a closed WiFi network or broadband connection through an additional adaptor and cable (extra cost). Square Terminal does not have a SIM card, so won’t work with mobile networks out and about. In other words, it’s made for portability around your business premises, not in random locations at, for example, a client’s house.

Square Terminal is a smart POS terminal with a large touchscreen. The software on the card machine is basically the same as the Square Point of Sale app, so you can use it as a portable checkout or small POS-and-payments terminal on a countertop. It also connects with Square’s POS systems for retail, restaurants and appointments.

Apart from these card payment devices, Square has an iPad stand (Square Stand) with card acceptance built in, as well as a grey Square Register with a large touchscreen so you don’t need a commercial tablet for the POS software.

You can connect cash drawers and receipt printers to most of the card machines, but Square works with more hardware. For example, Square works with kitchen printers, allowing restaurants and quick-services to run smoothly. And SumUp doesn’t work with barcode scanners, but Square does.

But we should note: SumUp’s card machines accept more card brands – Diners Club, Discover and JCB on top of the other major card brands accepted by both. But Square accepts Clearpay, a popular Buy Now, Pay Later credit option for consumers.

Fees: pay as you go, with small differences

Neither SumUp nor Square requires contractual commitment or monthly fees. Instead, you create a free account, purchase a card machine upfront and pay only a fixed transaction rate for successful payments.

There is no minimum monthly sales volume required or fixed monthly fees for the basic point of sale (POS) apps.

More POS features through Square

There are enough POS features in the free apps to run a micro-business, but the most advanced of the two is Square Point of Sale.

Both have an inventory library with product variants, images and VAT rates. There are options for tipping, accepting cash and refunding payments, and transactions and payout statuses can be accessed in the apps. Staff members can have their own logins with restricted access to certain features.

On top of that, Square has more features for inventory, employee management (with timesheets), splitting the tender, attaching customers to bills, discounting, marking transactions for eat-in, delivery, pick-up or takeaway, and more. You can view sales reports in the Square POS app and sell or accept gift cards (physical or online) from the till. These functions are lacking in SumUp App.

SumUp offers a more advanced POS system: SumUp Point of Sale (previously Goodtill). It has modules of specialised features to add to a ‘Core POS’ module, so the total cost per month depends on your needs. Alternatively, SumUp integrates with Lightspeed and Loyverse.

Square has three upgrade options: Square for Restaurants, Square for Retail and Square Appointments. You can also connect the card reader with TouchBistro and Shopwave POS systems.

The Square platform can be extended with dozens of different third-party apps for advanced functions like inventory management, online ordering, ecommerce, accounting and marketing. But you may not need it since new tools are continually added to the platform, such as Square Marketing and Loyalty.

SumUp only connects with a few ecommerce platforms (Wix, WooCommerce and PrestaShop) – no accounting systems, unless you upgrade to their paid POS system. Instead, SumUp tries to offer a broad enough toolset within the platform.

Remote payments included, but more with Square

Square and SumUp merchants benefit from multiple ways to get paid remotely, but they have slightly different features.

The overall payment methods overlap (see table below), but Square tends to have more advanced features within each method.

Square grows with you, SumUp sticks to convenience

SumUp and Square excel at making payments extremely accessible for small businesses. It’s quick to sign up online, affordable to get a card reader, and their software is some of the most user-friendly for even non-techy merchants. You get no long-term contract, fixed monthly fee (unless subscribing to Square’s paid upgrades) or complicated fees, just a few predictable card rates.

Square has considerably more till features and payment tools than SumUp, particularly for food and drink. Growing businesses can even connect Square with industry-specific POS systems and myriads of other software. SumUp has few integration options, so your POS system and online features are more limited.

But we did notice that SumUp includes different online features in its app than Square has in its own. Mobile SumUp merchants can access the virtual terminal and business account or create a basic online store from the SumUp app, none of which you can do in Square’s app.

Then again, Square has its own app for invoicing and staff management, plus sales reports in the app. Square merchants also have lots of tools in the online dashboard for business owners to expand online and analyse sales from afar.

Your choice of platform depends on how you plan to use a card machine, till requirements and whether you want to use the payment system long-term.