Square Statistics: The Numbers Behind America’s Small Business Payment Revolution

If you’re a small business, you face a few more obstacles when it comes to payment processing compared to large organizations. That’s not to say you don’t have options, but many are designed for big corporations, or at least medium-sized businesses with far more employees. 

For many, that’s where Square comes into the equation. The payment platform specializes in small businesses, and it was founded in 2009 by Twitter co-founder, Jack Dorsey and entrepreneur Jim McKelvey. With its roots in St Louise, Missouri, it now has a large and modern headquarters in San Francisco, California. In 2021, the company changed its name to Block Inc officially, but is still widely known by its former moniker. 

Yet, from small beginnings, huge stories grow. That’s certainly the case when you look at Square statistics in detail. In fact, Block, the parent company, has a market cap of around $47.14 billion in September 2025. While it might lag behind some of the big hitters in the industry, such as PayPal, you’re about to understand why Square is a big name in its own right. Rather than sticking to a tried-and-tested option, it’s diversified to stand alone. Let’s dig deeper into the Square story, uncover some fascinating details, and then learn why PayCompass is the perfect Square alternative for high-risk businesses in particular.

TL;DR

• Square processes around $228 billion in gross payment volume annually.
• However, it only holds around 1.4% of the total US payment market. 
• Around 4 million active sellers use Square across multiple countries.
• In 2023, Square generated $5.2 billion of transaction‑based revenue, up 11% year on year.
• Food service represented 29% of their merchant base in 2021, making it the largest segment by transaction volume.  
• Square does not accept high-risk businesses as part of their terms and conditions, making PayCompass the ideal alternative. 

Quick Highlights: Square by the Numbers

When you think of payment processors, particularly the big named giants, you might not automatically come up with Square immediately. But that’s okay, because it’s actually got its own niche. Square tailors itself toward small businesses, rather than being an ‘everything in one’ option like some of its competitors. Of course, this has its advantages and disadvantages. 

Let’s explore the numerical highlights, explaining some of the most eye-catching Square statistics currently. Of course, numbers change all the time, but Square has a consistent picture that allows us to understand what they offer more clearly. It’s likely that the same trend will continue over the coming years, as long as the platform remains competitive and continues to diversify. 

The Big Picture Stats

Let’s start with how much money Square actually processes every year. 

Square’s annual processing numbers are big. In fact, it processes around $228 billion in gross payment volume annually. Despite this, it only holds about 1.4% of the total U.S. payment market, lagging behind big-name competitors such as PayPal and Stripe. It might make you scratch your head as to why, but it’s important to remember that Square is predominantly aimed toward small businesses, and they market themselves as such. For that reason, their market is more narrow, explaining why they don’t command high percentages.  

You see, if you zoom in on small businesses in particular, you’ll see that Square dominates the picture quite a lot. In the US, 54% of small businesses use Square for their payment processing. Within this, retail businesses make up 42% of the picture, likely to be due to the platform’s easy-to-use POS systems. After all, small businesses often don’t have the time or the resources to opt for expensive and sophisticated systems that require careful installation and time lost in the process. 

To learn more about business size and Square market share, check out the table below. 

Business Size	Square Market Share	Traditional Processors	Key Advantages
Under $125K Revenue	18%	45%	Simple setup, transparent pricing
$125K-$500K Revenue	8%	62%	Growing presence, integrated tools
Over $500K Revenue	3%	78%	Limited penetration, enterprise focus

So, while the big-names have their own part of the market, Square opts to serve the smaller businesses that often get left behind. Yet, there’s one thing to remember – Square’s terms and conditions prevent them from accepting high-risk businesses. This leaves a huge number of businesses, small or otherwise, without a payment processor. That’s where PayCompass jumps in and offers the ideal solution. 

We offer dedicated high-risk merchant accounts that aren’t affected by your business classification. We’ve designed them with the payment processing challenges you regularly face in mind, including a higher risk of fraud and chargebacks. We offer a range of tools that help you side-step these problems, giving you the space to focus on your growth strategy instead. After all, nobody wants to spend their time worrying about possible account restrictions or out-of-the-blue closures that could seriously derail business operations. 

User Base and Geographic Reach

Now let’s talk about Square market share in terms of location. The platform is popular in several countries, including the US, Australia, Japan, the UK, and Canada. However, it does lack far-reaching locations, which could be an issue for companies who want to grow and cross borders over time. 

The US makes up the largest portion of Square’s market share, with around 217,282 stores using the platform, equating to 78%. This is closely followed by Canada, with a presence in 21,572 stores. Despite any particular location, Square reports around 4 million active sellers across multiple countries.

It is unknown as to whether Square will expand its presence in other countries. However, it performs well in the areas it’s currently located within. 

Revenue Streams That Keep Growing

Now let’s talk about the other ways that Square makes money. Because if you think that Square is only about small business payment processing, you’re wrong. They’ve actually diversified beyond this point and now have a range of revenue streams that fuel both retention and growth simultaneously. 

It’s a clever approach that’s allowed them to stick to their narrow niche while still ensuring strong revenue over time. Of course, this leads to growth. 

Transaction-Based Revenue Foundation

Even with several streams available, Square makes most of its money through payment processing fees, as most payment processors do. Currently, the platform charges 2.6% + 10¢ for in-person transactions and 2.9% + 30¢ for online payments. When you consider that in 2024, Square processed 5.2 billion individual sales, you can see how that revenue quickly adds up – totalling $228 billion in Gross Payment Volume that year. In fact, this number shows an 11% year-over-year increase in transaction-based revenue. Impressive, isn’t it?

This standard fee structure suits small businesses well, yet it isn’t the most ideal choice for medium businesses or those that are looking to grow relatively quickly. In those cases, other fee structures may suit better. 

Subscription Services Growth

Many payment processors find great success with continuity subscription models, giving a regular and predictable source of revenue. Unsurprisingly, transaction fees are just one part of the Square revenue picture. The platform recognized the value of building recurring revenue streams and put this into place relatively early. They have a subscription-based service for restaurants in particular – Square for Restaurants – along with Square for Retail. There are other add-on services also available. This creates recurring revenue for the platform that’s easy to manage. 

These services are also very beneficial for small businesses in these niches, giving them an ‘all-in-one’ approach that doesn’t cause unnecessary complications. 

The food service industry remains a hugely important sector for Square, representing 29% of their merchant base in 2021, making it the largest segment by transaction volume every year. 

Hardware and Ecosystem Revenue

Square’s revenue also comes through hardware sales, including terminal, card readers, and POS systems. In 2023, hardware revenue hit around $157.18 for the full year, dropping only slightly to $143.37 in December 2024. 

Additionally, Square’s revenue also comes through the Square Capital lending platform, the Cash App, and several software integrations. From a small business point of view, lending is vitally important for cash flow and growth, reflected in the more than $22 billion’s worth of loans Square Capital has approved worldwide. Of course, this also helps with retention, as small businesses deepen their relationship with the platform, making it harder for them to switch to a competitor. 

Technology That Actually Works

Square’s technological infrastructure is certainly impressive, and it’s a big competitive advantage for them. In fact, Square’s uptime is impressive, with no recent incidents as of October 2025. This, along with their focus on helping small businesses, is one of the reasons for the impressive Square statistics we’ve explored so far.

Processing Performance Metrics

Speed is vitally important in today’s online shopping world, and Square can process chip card/EMV transactions in just two seconds using its own Square Reader for Contactless + Chip and Square Register. Of course, this is very important during peak shopping times, such as Black Friday and Cyber Monday. 

The platform is extremely secure too, which gives peace of mind to customers. It retains compliance with PCI DSS Level 1 and uses advanced encryption, tokenization, and sophisticated fraud detection algorithms to spot suspicious activity. 

All of this is vitally important considering the different types of fraud around today. While fraud is damaging for all businesses, for small businesses with lower cash flow, the effects can be devastating. This is something we know all too well at PayCompass, and because of that, our merchant accounts come with fraud protection and chargeback prevention as standard. Our platform uses the latest technology to identify issues before they turn into a major headache, giving you peace of mind from the get-go. 

How Square Changed Everything for Small Businesses

We’ve talked about the fact that Square is a leader in the small business landscape, but let’s explore more about why that’s the case. 

Accessibility Revolution

In the past, small businesses often faced hurdles when trying to accept credit card payments. This was a major issue because over the last few years, we’ve seen a huge uptake in credit card payments, particularly online. For a little context, the US had approximately 56.2 billion credit card transactions in 2024, working out at around 153.9 million every day. 

Additionally, at that time, many processors had monthly fees, required complex equipment, and the approval processes were often lengthy. None of this was particularly easy for small businesses. Yet, Square came along and cut all of this red tape away, making it easier for small businesses to set up the infrastructure they need. 

Transparent Pricing Model

Square has a flat-rate pricing structure which makes it easy for small businesses to understand what they’re going to pay. In comparison, many processors use complex structures that have different tiers, interchange-plus models, monthly fees, and other surcharges. Of course, an easier-to-understand route is best for a small business and at PayCompass, that’s something we also offer to our customers. 

What This Means for Your Business

We’ve taken a hard look at the Square market share, and we’ve dug deep into revenue and different types of diversification, but what does all of this mean for your business? After all, at one point you’re likely to grow from a small business to a larger one, and this might mean you outgrow what Square can offer. Understanding your options after that point is important.  

When Square Works Best

It’s true that Square is a good choice for small businesses that need simple and straightforward payment processing. Many of Square’s clients process under $125,000 annually, and the platform will work well to that point. Much of this is down to the fat-rate pricing and easy integration of software, such as POS systems. Ultimately, it means you can start accepting payments quickly and easily. 

Square also provides business intelligence tools, which are a good option for small businesses that can’t afford all singing, all dancing analytics suites. As a side note, PayCompass can help you understand and utilize payment analytics, giving you the key data you need to keep growing. 

Yet, there comes a cut off point when it comes to Square. 

As your business grows, you need extra flexibility, and that’s something that the platform may not offer. To simplify things, the checklist below gives some key indicators of when Square might be an option. 

Square Utilization Checklist:

• Business processes under $125K annually
• Needs simple, transparent pricing
• Requires mobile payment flexibility
• Values integrated POS and analytics
• Operates in supported industries
• Can accept flat-rate fee structure
• Needs quick setup and deployment

Recognizing Square’s Limitations and PayCompass’ Strengths

Let’s talk more about that cut off point. 

At some point, the flat-rate pricing that Square offers could become expensive, particularly if you turn into a high-volume business. At this point, you might find that interchange-plus pricing models work out better for you, and that’s not something that Square offers. Additionally, there’s the high-risk issue we’ve talked about already. If you fall into this category, you might find your account restricted or even closed without warning. 

We can also talk about international businesses. These often face limitations with availability. As Square grows, this could become less of a problem, but as of now, it’s not a worldwide-available choice. In fact, it offers far fewer countries and currencies than its competitors. At PayCompass, we have a deep worldwide reach over more than 170 countries, and we offer multi-currency support. 

Ultimately, if you have one eye on growth, you need to choose a payment processor that can scale alongside you. This includes a competitive pricing structure, flexibility to support your business as you grow, protection against chargebacks and fraud, and dedicated account management. These are all boxes that we tick, with a personalized approach you won’t find anywhere else. 

Final Thoughts

By this point, you’re probably in agreement that these Square statistics tell an engaging and inspiring story. From almost nothing to huge success, the platform has stuck to its core audience and diversified to ensure extra revenue. With huge amounts processed annually, and clear year on year growth, the company is certainly doing something right.  

Of course, there’s clearly room to grow too, which makes the future exciting. Currently, Square caters to small businesses, and they dominate that part of the US market. Yet, if you zoom out, you can see that they’ve managed to look at other revenue streams too. This means they could also diversify further, expanding their market reach to catch up with their competitors. 

Yet, there are several downsides. One of them is a lack of room for your business to grow. While Square has plenty of space to diversify, it’s hard to see how a small business can reach for the stars when it’s stuck with a payment processor that only caters to small organizations. If you want to move beyond that level, it’s time to look further, perhaps toward PayCompass. 

We offer high-quality services for businesses of all types, particularly those that might be on the Square restricted businesses list. No matter your growth plans, we’re here to help, and you don’t have to worry about account issues simply because of your business classification. After all, why should you? Our merchants accounts have all the tools you need, including fraud detection and protection help, chargeback prevention, and real-time transaction monitoring. We even have a dedicated small business merchant account you can use at the start, and then move toward an account that suits your needs better as you grow. As you can see, we’re all about flexibility and a personalized approach – we don’t believe in a ‘one size fits all’ theory here; you’re unique and deserve services that suit your needs alone. So, if you’re ready to get started and move toward a streamlined, simple approach to payment processing, reach out to us today!