2026 head-to-head

PayPal Invoicing vs Square Invoices: Which is Better in 2026?

Square Invoices wins on more features overall (3 vs 2, 14 tied). Below is the full feature-by-feature breakdown.

Scoreboard

2
PayPal Invoicing wins
14
Tied
3
Square Invoices wins

Feature-by-feature comparison

Pricing

Feature PayPal Invoicing Square Invoices
Free plan
✓ Yes
Free to create — fees on paid invoices
✓ Yes
Free creation; 2.2% on payments
Entry paid plan
✓ Yes
No subscription, only per-transaction fees
✓ Yes
Per-transaction fees only
Download PDF without signup
✗ No
PayPal account required
✗ No

Invoicing features

Feature PayPal Invoicing Square Invoices
Unlimited invoices
✓ Yes
— Limited
Custom logo & branding
— Limited
Logo only — minimal template control
✓ Yes
Recurring invoices
✓ Yes
✓ Yes
Email invoices to clients
✓ Yes
✓ Yes
Multi-currency
✓ Yes
✓ Yes
Client management
— Limited
✓ Yes

Australian compliance

Feature PayPal Invoicing Square Invoices
ATO-compliant GST invoices
— Limited
Configurable but not auto-formatted
— Limited
ABN field built in
✗ No
Manual workaround via custom fields
✗ No
Australian-focused support
— Limited
— Limited

Accounting features

Feature PayPal Invoicing Square Invoices
Bank reconciliation
✗ No
✗ No
Expense tracking
✗ No
— Limited
Payroll
✗ No
✗ No
Inventory tracking
✗ No
✗ No

Integrations

Feature PayPal Invoicing Square Invoices
Stripe payments
✗ No
PayPal locks you to its own processor
✗ No
Square payments only
Mobile app
✓ Yes
— Limited

Setup & support

Feature PayPal Invoicing Square Invoices
Setup time
— Limited
PayPal Business account required
— Limited
Account signup required

Where PayPal Invoicing wins

  • Unlimited invoices
  • Mobile app

Where Square Invoices wins

  • Custom logo & branding
  • Client management
  • Expense tracking

A third option: InvoiceSonic, free

Neither tool fits your invoicing-only workflow? Try InvoiceSonic — free for unlimited ATO-compliant tax invoices, no signup required.

Create a free invoice now →

Frequently asked questions

Is PayPal Invoicing cheaper than Square Invoices?

PayPal Invoicing starts at Free (2.6% + AU$0.30 per paid invoice); Square Invoices starts at Free (2.2% per paid invoice). PayPal Invoicing offers free invoicing — fees apply to payments. Square Invoices offers free to create — fees on card payments.

Does PayPal Invoicing handle Australian GST and ABN better than Square Invoices?

For ATO-compliant GST: PayPal Invoicing = limited, Square Invoices = limited. For native ABN field: PayPal Invoicing = no, Square Invoices = no. If you operate in Australia and either tool falls short here, InvoiceSonic handles both natively — and it's free.

Which is better for freelancers — PayPal Invoicing or Square Invoices?

Most freelancers want fast invoicing without paying for full accounting. Between these two, Square Invoices wins more categories overall. But if you're a freelancer who just wants ATO-compliant tax invoices for free, InvoiceSonic is purpose-built for that workflow.

Can I switch from PayPal Invoicing to Square Invoices easily?

Do not assume a one-click migration. Confirm each product's current export and import formats, then test contacts, opening balances, unpaid invoices, tax codes, attachments and reconciliations before cancelling the old account. Keep statutory records outside both systems.

Should I use PayPal Invoicing or Square Invoices for invoicing only?

Both tools include more than invoicing. If invoicing is your only need, a dedicated generator can be faster and more focused than a full accounting subscription.

Is there a free alternative to both PayPal Invoicing and Square Invoices?

Yes — InvoiceSonic lets you create and download an invoice without signup. Its account plans have separate limits and pricing, so compare current official plans before deciding.