SB
SmallBiz Research
JR
By Jamie ReynoldsSmall Business Analyst
March 2025
Small Business Loyalty Solutions

Clavaa vs Square Loyalty Program: The Best Square Loyalty Alternative

We will take a look at why Clavaa is the best alternative to Square Loyalty and how it compares with others, while highlighting how the switch benefits your business.

Processing Fees
0%
With Clavaa (vs 2.6%)
Savings
$600
Monthly average
Rewards
Instant
Cashback rewards
Implementation
Simple
Start for free

As a small business owner, you may be searching for a cheaper, more flexible, and customer-friendly Square Loyalty alternative. The Square Loyalty program has made some enemies due to its subscription model that charges businesses monthly, fees per visit, and card processing fees that eat away at profit. This is the problem Clavaa aims to address.

Clavaa is not just any other loyalty program. It is a revolutionary, integrated payment and rewards program that helps businesses retain their customers without extra costs. Thanks to Clavaa's zero payment processing fees, along with instant cashback rewards and built-in marketing tools, small businesses avoided paying steep costs. The clients can enjoy the same benefits major American brands offer without incurring additional expenses.

For a business processing $20,000 in monthly transactions, switching to Clavaa can save around $520-$600 per month just by eliminating the 2.6% transaction fees that Square charges.

How To Use This Comparison

Navigate to specific sections using the table of contents below, or read through the full guide to understand how switching to Clavaa can benefit your business over Square Loyalty.

POS system with loyalty program interface
Detailed Comparison
Clavaa vs Square Loyalty
Save costs while improving customer retention
Research Methodology
Our analysis is based on data collected from over 200 small business owners who have used either Square Loyalty or Clavaa.

What Is Square Loyalty All About?

Before we analyze why the Clavaa reward program is the most appealing alternative to Square Loyalty, let's understand what a Square Loyalty really is.

Square Loyalty Program Basics

Square Loyalty is a customer rewards program that is integrated with the Square POS system. Businesses may set up sophisticated reward systems. This way, customers can earn points for every visit, dollar spent, or making specific purchases.

Watch: Getting Started with Square Loyalty

Benefits and Costs of Square Loyalty

It is helpful in retaining previous customers and attracting new clients, but it can saddle businesses with hefty costs. Business must pay the following:

Square Loyalty Fee Structure

  • Loyalty-based monthly fees

    $45 per month up to 500 visits along with $75 per month for 501-1,500 visits, and $105/month for 1,501-10,000 visits.

  • Credit card processing fees

    Averagely 2.6% with 10 cents per transaction.

Limitations Beyond Cost

The problems are not limited to just costs. Businesses cannot get their transaction fees exempted at any cost, even with repeated business. Moreover, it also affects a business' branding since loyalty interactions happen over Square's system and not on the venture's application.

Key Square Loyalty Limitations

  • Non-exemptible transaction fees regardless of customer loyalty
  • Limited control over customer loyalty experience
  • Branding concerns with Square-based loyalty interactions

Cost Consideration

When calculating the total cost of Square Loyalty, businesses must consider both the tiered monthly subscription fees based on visit volume and the ongoing transaction fees of 2.6% plus 10¢ per transaction.

Where Does Square Loyalty Fall Short?

Although Square Loyalty is a great choice for businesses using Square POS, recurring charges and stringent limitations make business owners look for alternatives. The common issues that are cited by proprietors are:

High Operational Costs

Profits are being consumed by high expenses.

Limited Brand Control

Inability to fully manage customer interaction and brand identity.

No Fee Exemptions

No exemption in transaction fees or built-in cashback rewards.

Ecosystem Lock-In

Reduced cross-channel functionality (Square Loyalty works mostly within the Square ecosystem).

The Clavaa Advantage

This is where Clavaa loyalty program shines, offering powerful tools and features that help businesses take their branding to the next level. This makes it the most viable alternative to Square Loyalty.

Clavaa - The Game Changing Loyalty Program

Clavaa is a payment solution and customer loyalty program that helps enable businesses to interact with their customers on a deeper level. Unlike typical rewards programs that run independently of the payment systems, Clavaa payment and loyalty rewards are integrated in a single smooth experience. It offers a streamlined approach where businesses can simplify the way they reward their customers.

Mobile payment and loyalty experience

Seamless Customer Experience

Payment and rewards in one integrated system

Clavaa helps medium and small businesses retain customers and build stronger relationships by changing the way loyalty programs work. It brings a new perspective by getting rid of punch cards and manual tracking, and offering a digital-first experience instead. This model aligns with consumers who engage with brands today. Through Clavaa, businesses can enjoy a healthier working relationship with their clients, while customers can benefit from an easy-to-use system that encourages repeat visits.

Digital-First Experience

Clavaa eliminates physical punch cards and manual tracking by providing a modern, app-based system that today's customers prefer.

Modern Customer Engagement

The platform creates a seamless reward experience that encourages repeat business and strengthens brand loyalty.

Why Clavaa Is A Winner

Clavaa was designed as a solution to Square Loyalty's shortcomings, making it a reliable loyalty platform that businesses can afford. Clavaa outperforms Square Loyalty in the following aspects:

Boosting Savings With No Payment Processing Fees

Square Loyalty has been criticized for charging clients with a hidden card processing fee which usually sits at 2.6% per transaction. Clavaa tackles the issue with the use of traditional card networks to process payments through its integrated digital wallet.

The payments made through Clavaa are free of servicing charges. This means businesses retain greater portions of their revenues. For example, if your business processes $20,000 in monthly transactions, businesses can save around $520-$600 per month just by switching to Clavaa.

$0
Transaction Fee

Unlike Square's 2.6% fee, Clavaa's payment processing is completely free, allowing businesses to keep more of their revenue.

Earn Instant Cash Back Rewards Instead Of Points

Square Loyalty works with a good old points system, which tends to slow things down for customers. Clavaa, on the other hand, offers instant cash back rewards, This has proven time and again to draw higher engagement numbers and repeat visits.

Studies show that customers prefer long-term rewards over points. With Clavaa, every single time a customer buys something, they get instant cash rewards on their Clavaa account. The rewards can be used for purchases later.

Customized Loyalty Tiers of Your Choice

Clavaa goes a step beyond Square Loyalty's basic point systems by allowing businesses to be in full control of their customized loyalty programs.

With Clavaa, customers can create tiered VIP programs, e.g. Silver, Gold, and Platinum. The higher the tier, the higher the rewards. It also offers referral bonus rewards, entry to special events, and holiday bonuses. Also, subscribers can run targeted promotions using Clavaa's built-in marketing tools.

Advanced Automation Marketing Within The System

Square Loyalty does not offer comprehensive marketing tools, requiring clients to purchase Square Marketing for this purpose.

Clavaa is a one-stop solution through which businesses receive loyalty, allow for payment processing, and provide marketing tools for branding - all within a single platform. This means subscribers can benefit from:

  • Tailored advertising through emails and app notifications
  • Special offers for dormant customers
  • Analyze customer spending in real-time

With Clavaa's assistance, businesses don't have to go looking for multiple tools to get their tasks done. It's loyalty, payments, and marketing under one roof.

Boosting Customer Satisfaction The Easy Way

Square Loyalty requires customers to input their phone number at checkout to earn points. Clavaa makes this easier by allowing customers to pay through the app and the rewards are credited into the app.

This means that issues like missing out on rewards or forgetting important numbers are a thing of the past. Clavaa saves the hassle of carrying a physical punch card. Instead, all perks are credited within the app, providing the customers with immediate access to their account and earned rewards.

This type of digital wallet experience enhances the entire customer experience with more Starbucks-like features.

Zero Fees
Save up to $600/month on transaction fees
Instant Rewards
Immediate cashback on every purchase
All-in-One Platform
Loyalty, payments & marketing tools

How Clavaa Stands Out from Square Loyalty

The table below illustrates the features that make Clavaa a viable alternative to Square Loyalty.

FeatureSquare LoyaltyClavaa
Loyalty StructurePoints-based systemInstant cashback rewards
Transaction Fees~2.6% per transaction0% – No payment processing fees
Monthly Costs$45–$105 per locationFree or low-cost ($25–$45 for premium features)
Marketing FeaturesBasic (requires Square Marketing add-on)Built-in email, push notifications, and analytics
Ease of UsePhone number entry required at checkoutSeamless app-based payment + rewards
Custom BrandingLimited (Square-controlled)Fully customizable loyalty tiers & branding
Customer RetentionGoodExcellent (higher engagement via instant rewards)

Wrapping Up

If you're looking for a Square Loyalty alternative that gives you more control and better rewards at cheap costs, Clavaa is the answer. It boosts savings with 0% transaction fees. The subscribers can increase customer retention with instant cashback rewards and build loyalty with their customers using Clavaa's marketing tools.

The loyalty rewards program platform offers a seamless payment and rewards experience without extra steps. Switching to Clavaa is simple, and businesses can start for free. If you're serious about growing customer loyalty without high costs, Clavaa is the ideal pick.

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