PayPal vs Square (Block)
Business model, scale, and a side-by-side Litmus framework score — which model wins, and for whom.
PayPal is bigger and consumer-led; Block is SMB-and-Cash-App-led with a younger demographic.
At a glance
| Metric | PayPal | Square (Block) |
|---|---|---|
| Revenue | ~$33B (Q1'26 annualized run-rate; $8.35B in Q1 2026) | $24.2B (FY2025); $10.4B gross profit (+17% YoY) |
| Profit | GAAP EPS $1.21 in Q1 2026 | Adjusted Operating Income $728M in Q1'26 (25% margin) |
| Active users | 439M active accounts (225M monthly active) | 59M Cash App monthly actives |
| Employees | ~24,400 | ~10,000 (after ~40% workforce reduction) |
| Founded | 1998 | 2009 |
| HQ | San Jose, USA | San Francisco, USA |
LLitmus Framework Score
Overall: PayPal 83 · Square (Block) 86
Customer Segment
90
92
Value Proposition
82
90
Marketing Channel
78
85
Engagement
75
88
Income Source
85
87
Asset Validation
88
89
Core Operations
80
84
Strategic Alliance
82
80
Expense Validation
83
82
PayPal leads 2 modules, Square (Block) leads 7. Overall edge: Square (Block).
Head to head
| Dimension | PayPal | Square (Block) |
|---|---|---|
| Revenue | ~$33B (annualized) | $24.2B (FY2025) |
| Consumer product | PayPal + Venmo wallets | Cash App (59M monthly actives) |
| Merchant base | 35M+ merchants | ~25% US SMB card acceptance |
| Edge | Buyer trust, branded checkout | SMB POS + Cash App ecosystem |
FAQ
Is PayPal or Square (Block) a better business?
PayPal is bigger and consumer-led; Block is SMB-and-Cash-App-led with a younger demographic. It depends on what you optimise for — see the module-by-module breakdown above.
What is the difference between PayPal and Square (Block)'s business model?
PayPal operates in Fintech (The safer, easier way to pay), while Square (Block) is Fintech (Economic empowerment). Their revenue, scale and Litmus scores are compared in detail above.
Which is more profitable, PayPal or Square (Block)?
PayPal: GAAP EPS $1.21 in Q1 2026. Square (Block): Adjusted Operating Income $728M in Q1'26 (25% margin).