What is Square? A Tool for Main Street, Not the World
Launched in 2010, Square revolutionized in-person payments for small businesses. It's primarily a point-of-sale (POS) platform designed to help physical stores, cafes, and service providers securely accept credit card payments. Think of the small white card reader plugged into a food truck's iPad—that's Square's home turf.
While Square offers an e-commerce solution (Square Online) and invoicing, its core infrastructure is built around domestic, in-person transactions. It excels at unifying a physical retail presence with an online one.
How Square Works
Square provides both the hardware (card readers) and software (POS app) to process payments. When a customer's card is swiped, dipped, or tapped, the information is sent through the Square app to the acquiring bank. For online payments, it functions similarly through their checkout system. Payouts to your bank account are typically available the next business day for free, with an option for instant transfers for a fee.
Pros of Square
All-in-One POS: Excellent for businesses that need to sync in-person sales with online inventory.
User-Friendly: Known for its simple setup and small learning curve, especially for non-technical users.
Free Hardware: Often provides a free basic magstripe reader to get started, lowering initial costs for new businesses.
Cons of Square for Digital Nomads
Limited International Reach: This is the biggest drawback. Square only supports businesses based in a handful of countries (like the US, Canada, Australia, Japan, and the UK) and does not handle cross-border payments well for business owners.
POS-Focused: The platform is heavily geared towards physical hardware and in-person sales, which is irrelevant for most digital service-based businesses.
Scalability Costs: The fee structure can become expensive for high-volume online businesses compared to more developer-focused alternatives.
What is Stripe? The Engine for Global Online Business
Stripe is an online payment API built from the ground up for internet businesses. It's a developer-centric platform that offers unparalleled flexibility and customization for e-commerce stores, SaaS companies, online marketplaces, and subscription services. Large brands like Target and Lyft, as well as millions of online startups, use Stripe to automate their payments.
For a digital nomad running a US LLC, Stripe's features align almost perfectly with the needs of a borderless business. It's designed to be integrated directly into your website or app, providing a seamless checkout experience for your clients worldwide.
How Stripe Works
Stripe acts as a sophisticated intermediary between your website and the financial networks. When a customer enters their payment details on your site, Stripe's API encrypts the data, sends it for approval, and confirms the transaction. It allows businesses to accept dozens of payment methods—from all major credit cards to 'buy now, pay later' services—without needing to set up a traditional merchant account. It's a comprehensive payment infrastructure designed for the digital economy.
Pros of Stripe
Exceptional International Support: Stripe supports processing payments in 135+ currencies and is available to businesses in over 30 countries, making it the default choice for global operations.
Highly Customizable: With its open APIs and hundreds of integrations (WooCommerce, Shopify, etc.), you can tailor the payment experience precisely to your business needs.
Developer-Focused: Perfect for tech-savvy entrepreneurs or those with development support who want to build a robust, scalable payment system.
Comprehensive Features: Beyond payments, Stripe offers tools for invoicing, fraud prevention (Stripe Radar), automated tax collection, and even business financing (Stripe Capital).
Cons of Stripe
Reporting Complexity: The detailed reporting can be overwhelming for beginners and sometimes has reconciliation glitches.
Less Ideal for In-Person Sales: While Stripe does offer POS solutions (Stripe Terminal), it's not its primary focus, and Square is generally better for brick-and-mortar needs.
Requires Some Technical Acumen: To leverage its full power, a basic understanding of APIs and integrations is helpful, though its pre-built checkouts are very easy to use.
Stripe vs. Square: Head-to-Head Comparison for Digital Nomads
Let's break down the key differences in a feature-by-feature comparison, viewed through the lens of a location-independent business owner.
Feature | Stripe | Square |
|---|---|---|
Best For | Online businesses, e-commerce, SaaS, marketplaces, digital nomads with US LLCs. | In-person businesses, retail stores, restaurants, pop-ups, service providers with physical locations. |
Online Transaction Fees | 2.9% + 30¢ per successful card charge. | 2.9% + 30¢ for online transactions. |
International Fees | 1% fee for international cards + an additional 1% if currency conversion is required. | Not designed for cross-border payments. The customer's bank handles conversion costs. |
Payout Speed | Standard is 2-3 business days. | Next business day (free). Instant transfer available for a 1.5% fee. |
Currencies Supported | 135+ currencies. | Only 5 currencies. |
Country Availability | 30+ countries. | 5 countries (US, CA, JP, AU, UK). |
Automated Sales Tax | Yes, Stripe Tax automatically calculates and collects tax on transactions. | Item-level tax rates for POS systems; less robust for online global sales. |
Customization | Extremely high via its developer-friendly API. | Limited. Primarily a plug-and-play system. |
The Verdict for Your US LLC
The table makes the choice clear. For a non-resident running a service-based business through a US LLC, Stripe is unequivocally the superior option. Its ability to handle over 135 currencies and support businesses across dozens of countries is the single most important factor. Your business is global, and you need a payment processor that is, too.
Square's severe limitations on international payments and currencies make it a non-starter for most digital nomads. While its simplicity is appealing, it's the simplicity of a tool not built for your use case. Stripe's platform, with its powerful API, Stripe Tax feature, and global-first approach, is tailor-made for the modern, location-independent entrepreneur.
