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GDPR Compliance Risk

Square is a US-based service subject to the CLOUD Act. EU organizations using this service risk non-compliance with GDPR data transfer requirements.

Square logo

GDPR-Compliant Alternative to Square

🇺🇸Block Inc. · US-based · Subject to CLOUD Act

Square by Block Inc. is a comprehensive point-of-sale (POS) system designed for businesses of all sizes. It enables users to process payments, manage inventory, and track sales via a user-friendly interface. The system includes hardware options like card readers and terminals, and offers online tools for invoicing and e-commerce.

Why You Need a GDPR-Compliant Alternative to Square

Since the landmark Schrems II ruling in 2020, transferring personal data to US-based services like Square has become a significant legal risk for EU organizations. The US CLOUD Act gives American authorities the power to access data held by US companies, regardless of where that data is physically stored — even if it's in an EU data center.

While the EU-US Data Privacy Framework (DPF) adopted in 2023 provides a new legal basis for transfers, privacy experts and legal scholars have raised concerns about its long-term viability. The framework could face the same fate as its predecessors (Safe Harbor and Privacy Shield), both of which were struck down by the Court of Justice of the EU.

For organizations that want to eliminate compliance risk entirely, switching to a European-based payment & fintech is the most straightforward solution. Below are the best GDPR-compliant alternatives to Square, all headquartered in Europe with data stored in EU data centers.

CLOUD Act Exposure

US authorities can access your data stored by Square, even if servers are located in Europe.

GDPR Fine Risk

Non-compliant data transfers can result in fines up to 4% of annual global revenue under GDPR Article 83.

EU Alternative Available

1 GDPR-compliant European alternative available with full EU data residency.

1 GDPR-Compliant Alternative to Square

European services with full GDPR compliance and EU data residency

SumUp logo

SumUp

🌍

by SumUp Limited

SumUp is a mobile payment processing solution designed for small businesses. It allows merchants to accept card payments via a card reader connected to a smartphone or tablet. The service includes a user-friendly app for sales tracking and reporting, enabling efficient management of transactions and finances.

GDPR CompliantEU-Based
freemiumMigration:●●●

Why switch?

  • No monthly fees with SumUp, unlike Square's subscription costs.
  • SumUp's card readers start at $19, lower than Square's options.
  • GDPR compliance ensures better data protection for EU customers.

Consider

  • Migrating data from Square to SumUp can be time-consuming.
  • Square's payroll and banking services are not available with SumUp.
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Quick GDPR Compliance Comparison

ServiceHQ LocationGDPR NativeEU Data CentersCLOUD Act FreePricing
🇺🇸Square
United StatesNoPartialNofreemium
🌍SumUpGBYesYesYesfreemium

Frequently Asked Questions

Is Square GDPR compliant?

Square is a US-based service operated by Block Inc.. While it may have some GDPR compliance measures, as a US company it is subject to the CLOUD Act, which allows US authorities to access data stored by US companies regardless of where the data is physically located. This creates a fundamental conflict with GDPR requirements for data protection.

What are the GDPR risks of using Square?

The main GDPR risks include: (1) Data transfers to the US may lack adequate protection since the Schrems II ruling invalidated Privacy Shield, (2) US authorities can demand access under the CLOUD Act, (3) Your organization may face GDPR fines up to 4% of annual revenue for non-compliant data transfers, and (4) User consent may not be sufficient to legitimize transfers given the systematic access by US authorities.

What are the best GDPR-compliant alternatives to Square?

The top GDPR-compliant alternatives to Square include SumUp. These European services store your data in EU data centers and are fully subject to GDPR protections.

How do I migrate from Square to a GDPR-compliant alternative?

Most migrations involve three steps: (1) Export your data from Square using their data export tools, (2) Create an account with your chosen EU alternative, and (3) Import your data into the new service. We provide detailed migration guides for each alternative to make the switch as smooth as possible.

Can EU companies legally use Square?

Since the Schrems II ruling (2020), EU organizations face significant legal risk when using US cloud services like Square. While the EU-US Data Privacy Framework (2023) provides a new legal basis, its long-term stability is uncertain. Many EU data protection authorities recommend using EU-based alternatives to avoid compliance risks entirely.

Other GDPR Alternatives in Payment & Fintech

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Related Pages

Migration Resources

Last updated: January 29, 2026