Square Loyalty vs Perkstar: Honest Comparison for UK Small Businesses
Feb 5, 2026
If you're already using Square for payments, you've probably seen the Square Loyalty option. It's right there in your dashboard, integrated with your existing system, and it sounds convenient: "Just turn on loyalty and start rewarding customers."
Or maybe you're evaluating payment systems and wondering whether Square's all-in-one approach (payments + loyalty in one platform) makes more sense than using separate tools.
Here's what you need to know: Square Loyalty and Perkstar solve the same problem (customer retention) but take fundamentally different approaches. One prioritizes integration and convenience within the Square ecosystem. The other prioritizes flexibility, wallet-based technology, and independence from any single payment provider.
Neither is objectively "better." They're designed for different business needs.
This guide compares Square Loyalty and Perkstar honestly — acknowledging where each solution excels, where each has limitations, and which approach makes sense for your specific situation. By the end, you'll know exactly which fits your business reality.
What Square Loyalty Is (And How It Works)
Let's start by understanding Square Loyalty clearly.
Square Loyalty: The Integrated Approach
Square Loyalty is a loyalty program feature built directly into the Square ecosystem. It's available as an add-on to Square's payment processing platform.
How it works:
You activate Square Loyalty in your Square dashboard (£25/month + transaction fees)
Customers enroll by providing phone number or email at checkout
Points are automatically awarded based on purchases processed through Square
Customers redeem rewards at checkout, and Square applies discounts automatically
You manage everything through your Square dashboard
The value proposition: Everything lives in one system. Your payments, sales data, and loyalty program are integrated. When a customer makes a purchase through Square, loyalty points are applied automatically. No separate logins, no manual tracking.
Square Loyalty Pricing
As of 2026, Square Loyalty costs:
£25/month base fee
Plus 2.9p per customer per month who enrolls in your loyalty program
Example: 200 active loyalty members = £25 + (£0.029 × 200) = £30.80/month
Example: 500 active loyalty members = £25 + (£0.029 × 500) = £39.50/month
Costs increase as your program grows. More customers = higher monthly fees.
Square Loyalty Features
Included capabilities:
Points-based rewards (spend-based, not visit-based)
Automated point accrual on purchases
Email and SMS marketing (separate fees apply for SMS)
Basic analytics in Square dashboard
Integration with Square POS and online ordering
Customer profiles tied to payment history
Limitations:
Only works with Square payment processing
Not wallet-based (customers don't get Apple Wallet or Google Wallet cards)
Per-customer pricing (costs scale with loyalty membership)
Limited to points-based systems (less flexibility for visit-based rewards)
Customers must provide contact info to enroll (friction point)
What Perkstar Is (And How It Works)
Now let's understand the alternative approach.
Perkstar: The Wallet-First, Platform-Agnostic Approach
Perkstar is a standalone digital loyalty platform that operates independently of your payment processor. It's built around Apple Wallet and Google Wallet integration.
How it works:
You set up digital loyalty cards using Perkstar's visual builder (30–60 minutes)
Customers scan a QR code at your counter to add card to Apple Wallet or Google Wallet
Staff scan customer cards at checkout using Perkstar's scanner app
Stamps or points update in real-time on customer's phone
Push notifications go out automatically (birthday rewards, re-engagement, etc.)
The value proposition: Wallet-based cards that customers can't lose, platform independence (use any payment processor you want), flat pricing that doesn't scale with customer count, and higher customer adoption through one-tap enrollment.
Perkstar Pricing
Perkstar uses flat monthly pricing:
Starter: £15/month (or £12/month paid yearly)
Growth: £30/month (or £25/month paid yearly)
Pro: £60/month (or £50/month paid yearly)
Unlimited customers, unlimited scans, unlimited push notifications. Price doesn't increase as your loyalty program grows.
Example: 200 loyalty members = £30/month
Example: 500 loyalty members = £30/month (same price)
Perkstar Features
Included capabilities:
Wallet-based loyalty (Apple Wallet + Google Wallet integration)
Multiple card types (stamps, points, discounts, cashback, membership)
Unlimited customers and scans
Unlimited push notifications
Automated campaigns (birthday rewards, re-engagement)
Analytics dashboard
Works with any payment processor (Square, SumUp, Zettle, Stripe, cash, or any combination)
Limitations:
Separate system (not directly integrated with POS)
Requires staff to scan cards manually (not automatic like Square)
No built-in email marketing (focused on push notifications)
Direct Comparison: Square Loyalty vs Perkstar
Let's compare them on dimensions that actually matter for UK small businesses.
Integration vs Independence
Square Loyalty:
✓ Seamlessly integrated with Square POS
✓ Points apply automatically on purchases
✓ Single dashboard for payments + loyalty
✗ Only works if you use Square for payments
✗ Locked into Square ecosystem This trade-off between convenience and flexibility is the central tension in the broader standalone vs POS-integrated loyalty debate, and it applies to every payment processor, not just Square.
Perkstar:
✓ Works with any payment processor
✓ Flexibility to switch payment providers without losing loyalty program
✓ Can track loyalty even for cash transactions
✗ Requires manual scanning (staff action needed)
✗ Separate login from payment system
Best for:
Square Loyalty: Businesses committed to Square long-term who value automation
Perkstar: Businesses wanting flexibility or using multiple payment methods
Pricing Structure
Square Loyalty:
Base: £25/month
Per-customer fee: £0.029/month per active member
Total cost scales with loyalty membership
Example costs:
100 members: £27.90/month
300 members: £33.70/month
500 members: £39.50/month
1,000 members: £54/month
Perkstar:
Flat fee: £15–£60/month depending on features
No per-customer charges
Unlimited customers and scans
Example costs:
100 members: £30/month
300 members: £30/month
500 members: £30/month
1,000 members: £30/month
Best for:
Square Loyalty: Very small programs (under 100 members) where integration value outweighs scaling costs
Perkstar: Growing programs or businesses wanting cost predictability
Customer Enrollment Experience
Square Loyalty:
Customer provides phone number or email at checkout
Staff enter it into Square POS
Customer receives enrollment confirmation via SMS or email
No physical or digital card (tracked by phone number/email)
Friction: Some customers hesitate to provide contact info
Perkstar:
Customer scans QR code with phone camera
One tap adds digital card to Apple Wallet or Google Wallet
Card appears instantly on phone
Visible progress (can see stamps/points anytime)
Friction: Minimal (5-second process, no info re If you're unfamiliar with how QR code loyalty cards work in practice, the process is genuinely simple: customer points camera, card appears, one tap saves it.quired upfront)
Adoption rates:
Square Loyalty: ~40–60% (some customers decline to provide contact info)
Perkstar: ~60–80% (one-tap enrollment is frictionless)
Best for:
Square Loyalty: Businesses already collecting customer emails for other purposes
Perkstar: Businesses wanting maximum participation with minimum friction
Reward Flexibility
Square Loyalty:
Points-based system (spend = points)
Example: £1 spent = 1 point, 100 points = £5 reward
Works well for retail with variable transaction values
Less flexible for service businesses (haircuts, treatments)
Perkstar:
Multiple reward types: stamps (visit-based), points (spend-based), discounts, cashback
Example: "Get 9 haircuts, 10th free" (visit-based)
Example: "Earn 1 point pe There's also a margin question worth considering: points-based vs cashback rewards have very different cost profiles, and the structure you choose affects profitability as much as customer behaviour.r £1, 50 points = £5 off" (spend-based)
Can switch between types easily
Best for:
Square Loyalty: Retail businesses where spending amount matters most
Perkstar: Service businesses (salons, barbers, clinics) or businesses wanting visit-based rewards
Customer Visibility and Engagement
Square Loyalty:
Customers don't have a visible card
Must ask staff for balance or check via SMS/email
Lower visibility = lower engagement
No lock screen presence
Perkstar:
Customers have digital card in wallet (visible on lock screen)
See progress every time they open wallet to pay
High visibility = higher engagement
Card lives alongside bank cards (opened 5–10x daily)
Best for:
Square Loyalty: Businesses where staff-customer interaction is strong enough to compensate for lower visibility
Perkstar: Businesses wanting passive visibility to drive repeat visits
Push Notifications
Square Loyalty:
Email notifications included
SMS notifications cost extra (7–10p per message in UK)
Notifications go to email/phone (easily ignored)
Perkstar:
Push notifications unlimited and included
Messages appear on lock screen via Apple Wallet/Google Wallet
Higher engagement than email (40–60% open rate vs This engagement gap is one of the main reasons businesses are choosing Apple Wallet loyalty cards over dedicated apps — notifications that live on the lock screen simply outperform those buried in email inboxes. 15–25% for email)
Free (no per-message costs)
Best for:
Square Loyalty: Businesses with strong email engagement
Perkstar: Businesses wanting cost-effective re-engagement through push notifications
Platform Lock-In
Square Loyalty:
Requires Square payment processing
If you switch payment providers (to SumUp, Zettle, Stripe, etc.), you lose loyalty program
Customer data tied to Square ecosystem
Migration is complex and disruptive
Perkstar:
Works with any payment processor
Can switch payment providers without affecting loyalty
Can use multiple payment methods simultaneously (Square + cash + card reader)
Loyalty program is independent infrastructure
Best for:
Square Loyalty: Businesses confident they'll use Square forever
Perkstar: Businesses wanting flexibility or using multiple payment methods
Real-World Example: A Café in Leeds
Let's see how the decision plays out in practice.
The business: Independent specialty coffee shop. 220 regular customers. Currently using Square POS for payments.
Option 1: Add Square Loyalty
Month 1:
Activated Square Loyalty: £25/month base
Enrolled 85 customers (phone number collection at checkout)
Cost: £25 + (85 × £0.029) = £27.47
Month 6:
178 enrolled customers
Cost: £25 + (178 × £0.029) = £30.16
Loyalty points apply automatically on purchases
Sent 2 email campaigns (open rate: 18%)
Customers occasionally asked: "How many points do I have?"
Advantages:
Seamless with existing Square workflow
Points applied automatically
Single dashboard for everything
Frustrations:
Some customers declined to provide phone numbers
Low email engagement on campaigns
Wanted to send more promotions but SMS costs added up
Customers had no visible way to track progress
Option 2: Use Perkstar Instead
Month 1:
Set up Perkstar: £30/month flat
Created digital stamp card: Buy 9 coffees, get 10th free
Generated QR code for counter
Enrolled 142 customers (QR code scanning)
Cost: £30
Month 6:
198 enrolled customers
Cost: £30 (unchanged)
Sent 4 push notification campaigns (average engagement: 12% visited within 48 hours)
Re-engagement campaign brought back 19 lapsed customers
Zero cost for notifications
Advantages:
Higher enrollment (customers loved one-tap joining)
Cards visible on phones (customers checked progress themselves)
Unlimited push notifications (no SMS costs)
Cost stayed flat as program grew
Trade-offs:
Staff needed to scan cards manually (added 5 seconds per transaction)
Separate login from Square dashboard
The Decision
Owner chose Perkstar because:
Higher adoption: 70% enrollment vs 40% with Square (QR code scanning was frictionless)
Cost predictability: £30/month forever vs increasing costs (would have been £30.76 at 198 customers with Square)
Customer visibility: Wallet cards drove engagement (customers saw progress daily)
Communication cost: Unlimited push notifications vs paying for SMS
Owner's reflection:
"I love Square for payments, but Perkstar made more sense for loyalty. The wallet cards get way more adoption because customers don't have to provide personal info — they just scan and it's done. And the flat pricing means I won't get hit with rising costs as the program grows. I'm happy keeping Square for payments and Perkstar for loyalty. They're both good at what they do."
Modern Take: Why Platform Independence Matters
Here's a perspective that matters in 2026:
The Risk of Payment Processor Lock-In
Payment processing is a competitive market. Providers regularly:
Change pricing structures
Introduce new fees
Alter terms of service
Get acquired by larger companies (and policies change)
If your loyalty program is locked to your payment processor:
You can't switch providers without losing loyalty data
You can't negotiate better rates (you're locked in)
You're vulnerable to pol Your loyalty program is just one of several customer retention tools you'll rely on, and tying all of them to a single vendor means a pricing change or policy shift can disrupt your entire retention strategy overnight.icy changes you can't control
If your loyalty program is independent:
You can switch payment processors anytime
You maintain customer relationships regardless of payment provider
Loyalty is infrastructure you control, not a feature you rent
The Value of Wallet-Based Loyalty
In 2026, wallet-based loyalty (Apple Wallet + Google Wallet) has proven superior to non-wallet digital systems because:
Adoption rates are 50–100% higher (one-tap enrollment vs form-filling)
Visibility is constant (lock screen presence vs email/SMS-only)
Engagement is higher (passive visibility drives action)
Professional appearanc For a deeper look at why wallet-based loyalty cards have become the default for small businesses, the data on adoption rates and lock-screen visibility tells a compelling story.e (looks like Starbucks' program)
Square Loyalty doesn't use wallets. It relies on phone number/email lookup and email/SMS communication. This works, but it's not the most effective approach available in 2026.
Who Should Choose Square Loyalty
Square Loyalty makes sense if:
✓ You're fully committed to Square long-term
You have no plans to switch payment processors and value deep integration more than flexibility.
✓ You have very few loyalty members (under 100)
Per-customer pricing is negligible at small scale, and integration convenience outweighs cost concerns.
✓ You want maximum automation
You value automatic point application and single-dashboard management above all else.
✓ Your business is retail-focused with variable transaction values
Points-based (spend-driven) rewards align with your business model.
✓ You already collect customer emails extensively
You have strong email engagement and customers readily provide contact info.
Square Loyalty is a solid choice for businesses that prioritize convenience within the Square ecosystem above flexibility and cost predictability.
Who Should Choose Perkstar
Perkstar makes sense if:
✓ You want platform independence
You use multiple payment methods (Square + cash + card terminal) or want flexibility to switch processors.
✓ You're growing and want cost predictability
Flat pricing protects you from scaling costs as loyalty membership increases.
✓ You want maximum customer adoption
Wallet-based enrollment achieves 60–80% participation vs 40–60% for contact-info-based systems. These adoption rates vary significantly depending on whether you use an app-based, web-based, or wallet-based approach — understanding the differences between mobile loyalty card formats explains why wallet-based systems consistently outperform.
✓ Your business is service-based (salons, barbers, clinics)
Visit-based rewards ("9 haircuts, 10th free") work better than spend-based points. Service businesses have fundamentally different loyalty dynamics than retail, and loyalty platforms built for service businesses reflect this by prioritising visit frequency over transaction value.
✓ You want high-visibility loyalty cards
Wallet cards on lock screens drive engagement through passive visibility.
✓ You want cost-effective customer communication
Unlimited free push notifications vs paying for SMS with Square.
Perkstar is ideal for businesses that prioritize flexibility, wallet-based technology, and predictable costs.
Can You Use Both?
Technically, yes. But it's rarely practical.
Running both Square Loyalty and Perkstar simultaneously means:
Paying for two loyalty platforms
Confusing customers ("Which program should I join?")
Managing two separate systems
Splitting your loyalty base
Better approach: Choose one based on the criteria above. Commit to it. Measure results after 3 months. Switch if needed (both allow data export).
Making the Decision: A Simple Framework
Ask yourself these questions:
Question 1: Do I plan to use Square for payments indefinitely?
If yes: Square Loyalty is viable
If no or uncertain: Perkstar (independence matters)
Question 2: How many loyalty members do I expect to have?
If under 150: Costs are similar, choose based on features
If 150–500: Perkstar becomes cheaper (flat vs scaling)
If 500+: Perkstar is significantly cheaper
Question 3: Is my business retail or service-focused?
If retail (variable transaction values): Square's points work well
If service (haircuts, treatments, visits): Perkstar's visit-based rewards work better
Question 4: How important is customer enrollment friction?
If I don't mind asking for phone numbers: Square works
If I want frictionless one-tap joining: Perkstar (wallet-based wins)
Question 5: Do I want to send frequent promotions?
If occasional emails are enough: Square works
If I want unlimited push notifications: Perkstar (no per-message costs)
If you answered in favor of Perkstar on 3+ questions, choose Perkstar.
If you answered in favor of Square on 3+ questions, choose Square Loyalty.
Final Thoughts: Both Are Good — Choose Based on Fit
This isn't a "good vs bad" comparison. Square Loyalty and Perkstar are both effective solutions designed for different priorities.
Square Loyalty excels at: Integration, automation, and convenience within the Square ecosystem.
Perkstar excels at: Flexibility, wallet-based technology, cost predictability, and platform independence.
The right choice depends on:
Your payment processing strategy
Your business type (retail vs service)
Your expected loyalty program size
Your preference for integration vs independence
For many small businesses, Perkstar's wallet-first approach, flat pricing, and platform independence make it the better long-term choice. But if you're deeply embedded in Square and value seamless integration above everything else, Square Loyalty is perfectly viable.
The worst decision is choosing no loyalty program at all. Whether you choose Square Loyalty or Perkstar, implementing customer retention is what matters. Both solutions work. Pick the one that fits your business reality and commit to it.
Start your free 14-day trial with Perkstar — no credit card required. Test wallet-based loyalty, compare it to Square Loyalty if you want, and make an informed decision based on actual experience with both platforms.
You don't need the "perfect" solution. You need the one that works for your business.
