How to integrate Square MCP with Pydantic AI

This guide walks you through connecting Square to Pydantic AI using the Composio tool router. By the end, you'll have a working Square agent that can create and send an invoice to a customer, list all recent payments from last week, update item prices in your product catalog through natural language commands. This guide will help you understand how to give your Pydantic AI agent real control over a Square account through Composio's Square MCP server. Before we dive in, let's take a quick look at the key ideas and tools involved.

Square logoSquare
Oauth2

Square is a platform for payment processing, POS, invoicing, and e-commerce. It empowers businesses to accept payments, manage sales, and streamline operations from one place.

96 Tools

Introduction

This guide walks you through connecting Square to Pydantic AI using the Composio tool router. By the end, you'll have a working Square agent that can create and send an invoice to a customer, list all recent payments from last week, update item prices in your product catalog through natural language commands.

This guide will help you understand how to give your Pydantic AI agent real control over a Square account through Composio's Square MCP server.

Before we dive in, let's take a quick look at the key ideas and tools involved.

Also integrate Square with

TL;DR

Here's what you'll learn:
  • How to set up your Composio API key and User ID
  • How to create a Composio Tool Router session for Square
  • How to attach an MCP Server to a Pydantic AI agent
  • How to stream responses and maintain chat history
  • How to build a simple REPL-style chat interface to test your Square workflows

What is Pydantic AI?

Pydantic AI is a Python framework for building AI agents with strong typing and validation. It leverages Pydantic's data validation capabilities to create robust, type-safe AI applications.

Key features include:

  • Type Safety: Built on Pydantic for automatic data validation
  • MCP Support: Native support for Model Context Protocol servers
  • Streaming: Built-in support for streaming responses
  • Async First: Designed for async/await patterns

What is the Square MCP server, and what's possible with it?

The Square MCP server is an implementation of the Model Context Protocol that connects your AI agent and assistants like Claude, Cursor, etc directly to your Square account. It provides structured and secure access to your Square business tools, so your agent can perform actions like processing payments, managing invoices, tracking orders, handling customers, and managing inventory on your behalf.

  • Seamless payment processing: Let your agent accept card payments, issue refunds, and manage transactions across your business locations.
  • Automated invoice creation and management: Ask your agent to generate, send, and monitor invoices for your customers, streamlining your billing process.
  • Order and fulfillment tracking: Enable your agent to view, update, and manage orders, helping you keep tabs on fulfillment and delivery status with ease.
  • Customer profile management: Have your agent create, update, or search customer profiles, making it easier to personalize service and maintain up-to-date records.
  • Inventory and item catalog control: Allow your agent to track stock levels, update item details, and organize your catalog for smooth retail operations.

What is the Composio tool router, and how does it fit here?

What is Composio SDK?

Composio's Composio SDK helps agents find the right tools for a task at runtime. You can plug in multiple toolkits (like Gmail, HubSpot, and GitHub), and the agent will identify the relevant app and action to complete multi-step workflows. This can reduce token usage and improve the reliability of tool calls. Read more here: Getting started with Composio SDK

The tool router generates a secure MCP URL that your agents can access to perform actions.

How the Composio SDK works

The Composio SDK follows a three-phase workflow:

  1. Discovery: Searches for tools matching your task and returns relevant toolkits with their details.
  2. Authentication: Checks for active connections. If missing, creates an auth config and returns a connection URL via Auth Link.
  3. Execution: Executes the action using the authenticated connection.

Step-by-step Guide

Step by step09 STEPS
1

Prerequisites

Before starting, make sure you have:
  • Python 3.9 or higher
  • A Composio account with an active API key
  • Basic familiarity with Python and async programming
2

Getting API Keys for OpenAI and Composio

OpenAI API Key
  • Go to the OpenAI dashboard and create an API key. You'll need credits to use the models, or you can connect to another model provider.
  • Keep the API key safe.
Composio API Key
  • Log in to the Composio dashboard.
  • Navigate to your API settings and generate a new API key.
  • Store this key securely as you'll need it for authentication.
3

Install dependencies

bash
pip install composio pydantic-ai python-dotenv

Install the required libraries.

What's happening:

  • composio connects your agent to external SaaS tools like Square
  • pydantic-ai lets you create structured AI agents with tool support
  • python-dotenv loads your environment variables securely from a .env file
4

Set up environment variables

bash
COMPOSIO_API_KEY=your_composio_api_key_here
USER_ID=your_user_id_here
OPENAI_API_KEY=your_openai_api_key

Create a .env file in your project root.

What's happening:

  • COMPOSIO_API_KEY authenticates your agent to Composio's API
  • USER_ID associates your session with your account for secure tool access
  • OPENAI_API_KEY to access OpenAI LLMs
5

Import dependencies

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()
What's happening:
  • We load environment variables and import required modules
  • Composio manages connections to Square
  • MCPServerStreamableHTTP connects to the Square MCP server endpoint
  • Agent from Pydantic AI lets you define and run the AI assistant
6

Create a Tool Router Session

python
async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Square
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["square"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")
What's happening:
  • We're creating a Tool Router session that gives your agent access to Square tools
  • The create method takes the user ID and specifies which toolkits should be available
  • The returned session.mcp.url is the MCP server URL that your agent will use
7

Initialize the Pydantic AI Agent

python
# Attach the MCP server to a Pydantic AI Agent
square_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
agent = Agent(
    "openai:gpt-5",
    toolsets=[square_mcp],
    instructions=(
        "You are a Square assistant. Use Square tools to help users "
        "with their requests. Ask clarifying questions when needed."
    ),
)
What's happening:
  • The MCP client connects to the Square endpoint
  • The agent uses GPT-5 to interpret user commands and perform Square operations
  • The instructions field defines the agent's role and behavior
8

Build the chat interface

python
# Simple REPL with message history
history = []
print("Chat started! Type 'exit' or 'quit' to end.\n")
print("Try asking the agent to help you with Square.\n")

while True:
    user_input = input("You: ").strip()
    if user_input.lower() in {"exit", "quit", "bye"}:
        print("\nGoodbye!")
        break
    if not user_input:
        continue

    print("\nAgent is thinking...\n", flush=True)

    async with agent.run_stream(user_input, message_history=history) as stream_result:
        collected_text = ""
        async for chunk in stream_result.stream_output():
            text_piece = None
            if isinstance(chunk, str):
                text_piece = chunk
            elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                text_piece = chunk.delta
            elif hasattr(chunk, "text"):
                text_piece = chunk.text
            if text_piece:
                collected_text += text_piece
        result = stream_result

    print(f"Agent: {collected_text}\n")
    history = result.all_messages()
What's happening:
  • The agent reads input from the terminal and streams its response
  • Square API calls happen automatically under the hood
  • The model keeps conversation history to maintain context across turns
9

Run the application

python
if __name__ == "__main__":
    asyncio.run(main())
What's happening:
  • The asyncio loop launches the agent and keeps it running until you exit

Complete Code

Here's the complete code to get you started with Square and Pydantic AI:

python
import asyncio
import os
from dotenv import load_dotenv
from composio import Composio
from pydantic_ai import Agent
from pydantic_ai.mcp import MCPServerStreamableHTTP

load_dotenv()

async def main():
    api_key = os.getenv("COMPOSIO_API_KEY")
    user_id = os.getenv("USER_ID")
    if not api_key or not user_id:
        raise RuntimeError("Set COMPOSIO_API_KEY and USER_ID in your environment")

    # Create a Composio Tool Router session for Square
    composio = Composio(api_key=api_key)
    session = composio.create(
        user_id=user_id,
        toolkits=["square"],
    )
    url = session.mcp.url
    if not url:
        raise ValueError("Composio session did not return an MCP URL")

    # Attach the MCP server to a Pydantic AI Agent
    square_mcp = MCPServerStreamableHTTP(url, headers={"x-api-key": COMPOSIO_API_KEY})
    agent = Agent(
        "openai:gpt-5",
        toolsets=[square_mcp],
        instructions=(
            "You are a Square assistant. Use Square tools to help users "
            "with their requests. Ask clarifying questions when needed."
        ),
    )

    # Simple REPL with message history
    history = []
    print("Chat started! Type 'exit' or 'quit' to end.\n")
    print("Try asking the agent to help you with Square.\n")

    while True:
        user_input = input("You: ").strip()
        if user_input.lower() in {"exit", "quit", "bye"}:
            print("\nGoodbye!")
            break
        if not user_input:
            continue

        print("\nAgent is thinking...\n", flush=True)

        async with agent.run_stream(user_input, message_history=history) as stream_result:
            collected_text = ""
            async for chunk in stream_result.stream_output():
                text_piece = None
                if isinstance(chunk, str):
                    text_piece = chunk
                elif hasattr(chunk, "delta") and isinstance(chunk.delta, str):
                    text_piece = chunk.delta
                elif hasattr(chunk, "text"):
                    text_piece = chunk.text
                if text_piece:
                    collected_text += text_piece
            result = stream_result

        print(f"Agent: {collected_text}\n")
        history = result.all_messages()

if __name__ == "__main__":
    asyncio.run(main())

Conclusion

You've built a Pydantic AI agent that can interact with Square through Composio's Tool Router. With this setup, your agent can perform real Square actions through natural language. You can extend this further by:
  • Adding other toolkits like Gmail, HubSpot, or Salesforce
  • Building a web-based chat interface around this agent
  • Using multiple MCP endpoints to enable cross-app workflows (for example, Gmail + Square for workflow automation)
This architecture makes your AI agent "agent-native", able to securely use APIs in a unified, composable way without custom integrations.
TOOLS

Supported Tools

Every Square action and event your agent gets out of the box.

Accept Dispute

Accept a dispute and acknowledge liability, returning funds to the cardholder.

Add Group to Customer

Tool to add a customer to a customer group.

Calculate Order

Tool to preview order pricing without creating an order.

Cancel Invoice

Cancels a Square invoice, preventing further payments from being collected.

Cancel Payment

Cancels (voids) a payment that is in APPROVED status.

Create Bulk Customers

Tool to create multiple customer profiles in a single request.

Create Card

Tool to create a card on file.

Create Customer

Tool to create a new customer profile in Square.

Create Customer Custom Attribute Definition

Tool to create a customer-related custom attribute definition.

Create Customer Group

Tool to create a new customer group for a business.

Create Dispute Evidence File

Tool to upload a file as dispute evidence.

Create Dispute Evidence Text

Upload text evidence for a dispute challenge.

Create Invoice Attachment

Upload and attach a file to a Square invoice.

Create Location

Tool to create a new business location in a Square account.

Create Location Custom Attribute Definition

Tool to create a location-related custom attribute definition.

Delete Customer

Tool to delete a Square customer profile.

Delete Customer Custom Attribute

Tool to delete a custom attribute from a customer profile.

Delete Customer Custom Attribute Definition

Tool to delete a customer-related custom attribute definition.

Delete Customer Group

Tool to delete a customer group by its ID.

Bulk Delete Customers

Tool to bulk delete customer profiles from Square.

Delete Dispute Evidence

Removes a specific piece of evidence from a dispute.

Delete Invoice

Tool to delete a Square invoice (only DRAFT invoices can be deleted).

Delete Invoice Attachment

Tool to delete an attachment from a Square invoice.

Delete Location Custom Attribute

Tool to delete a custom attribute from a location.

Delete Location Custom Attribute Definition

Tool to delete a location-related custom attribute definition.

Delete Locations Custom Attributes (Batch)

Tool to delete custom attributes from multiple locations in a single batch request.

Delete Merchant Custom Attribute

Tool to delete a custom attribute from a merchant profile.

Delete Merchant Custom Attribute Definition

Tool to delete a merchant-related custom attribute definition.

Delete Merchants Custom Attributes (Batch)

Tool to delete custom attributes from multiple merchants in a single batch request.

Delete Webhook Subscription

Permanently deletes a webhook subscription by its ID.

Get Business Booking Profile

Tool to retrieve the business booking profile for a Square merchant via GraphQL.

Get Current Merchant

Tool to retrieve merchant information associated with the access token using Square's GraphQL API.

Get Customer Custom Attribute

Retrieves a custom attribute from a customer profile in Square.

Get Customer Custom Attribute Definition

Tool to retrieve a customer-related custom attribute definition from Square.

Get Customers via GraphQL

Tool to retrieve customer profiles from Square Customer Directory using GraphQL API.

Get Dispute Evidence

Retrieves detailed information about a specific piece of evidence that was uploaded for a dispute.

Get Invoice

Retrieves detailed information about a specific Square invoice by its ID.

Get Merchant

Tool to retrieve detailed information about a specific Square merchant by ID.

Get Online Checkout Location Settings

Tool to retrieve location-level settings for Square online checkout.

List Channels

Tool to list requested channels from Square.

List Customer Custom Attribute Definitions

Tool to list customer-related custom attribute definitions from Square.

List Customer Custom Attribute Definitions (GraphQL)

Tool to retrieve customer custom attribute definitions via Square's GraphQL API.

List Customer Custom Attributes

Tool to list custom attributes for a customer profile.

List Customer Groups

Tool to retrieve the list of customer groups of a business.

List Customers

Tool to retrieve customer profiles associated with a Square account.

List Customer Segments

Tool to retrieve the list of customer segments of a business.

List Dispute Evidence

Tool to list evidence items associated with a given dispute.

List Invoices

Tool to list invoices for a Square location.

List Location Custom Attribute Definitions

Tool to list location-related custom attribute definitions from Square.

List Locations

Tool to retrieve all business locations from a Square account.

List Locations Custom Attributes

Tool to list custom attributes for a specific location in Square.

List Merchant Custom Attribute Definitions

Tool to list merchant-related custom attribute definitions from Square.

List Merchants

Tool to retrieve merchant account information associated with the access token.

List Merchants Custom Attributes

Tool to list custom attributes for a specific merchant in Square.

List Payments

Tool to list payments by location and time range to enable reconciliation and net sales reporting from Square POS.

List Webhook Event Types

Tool to list available webhook event types.

List Webhook Subscriptions

List all webhook subscriptions owned by your application.

Remove Group From Customer

Removes a customer from a customer group.

Retrieve Bulk Customers

Tool to retrieve multiple customer profiles in a single request.

Retrieve Channel

Retrieve a Square channel by its ID.

Bulk Retrieve Channels

Tool to bulk retrieve multiple Square channels by their IDs in a single request.

Retrieve Customer

Tool to retrieve detailed information about a specific Square customer by ID.

Retrieve Customer Group

Tool to retrieve a specific Square customer group by ID.

Retrieve Customer Segment

Tool to retrieve a specific customer segment by its ID.

Retrieve Dispute

Tool to retrieve a Square dispute by ID.

Retrieve Location

Tool to retrieve detailed information about a specific Square location by ID.

Retrieve Location Custom Attribute

Retrieves a custom attribute associated with a location in Square.

Retrieve Location Custom Attribute Definition

Tool to retrieve a location-related custom attribute definition.

Retrieve Merchant Custom Attribute

Retrieves a custom attribute associated with a merchant in Square.

Retrieve Merchant Custom Attribute Definition

Tool to retrieve a merchant-related custom attribute definition from Square.

Retrieve Merchants

Tool to retrieve merchant information including status, main location details, and capabilities using Square's GraphQL API.

Retrieve Order

Retrieves detailed information about a specific Square order by its ID.

Retrieve Payment Link

Retrieves a Square-hosted payment link by ID.

Retrieve Token Status

Tool to retrieve information about an OAuth access token or personal access token.

Retrieve Webhook Subscription

Retrieve a Square webhook subscription by its ID.

Search Customers

Tool to search customer profiles in Square Customer Directory.

Search Orders

Tool to search orders across one or more Square locations with filters.

Submit Dispute Evidence

Submits evidence for a dispute to the cardholder's bank.

Test Webhook Subscription

Tests a webhook subscription by sending a test event to the configured notification URL.

Update Customer

Tool to update an existing Square customer profile.

Update Customer Custom Attribute Definition

Tool to update a customer-related custom attribute definition in Square.

Update Customer Group

Tool to update a customer group's information by its ID.

Bulk Update Customers

Tool to update multiple customer profiles in a single batch operation.

Update Location

Tool to update an existing business location in a Square account.

Update Location Custom Attribute Definition

Tool to update a location-related custom attribute definition in Square.

Update Merchant Custom Attribute Definition

Tool to update a merchant-related custom attribute definition in Square.

Update Online Checkout Location Settings

Tool to update location-level settings for Square online checkout.

Update Order

Updates an existing Square order by adding, modifying, or removing fields.

Update Webhook Subscription

Tool to update a Square webhook subscription.

Update Webhook Subscription Signature Key

Tool to rotate the signature key for a webhook subscription.

Upsert Customer Custom Attribute

Tool to create or update a custom attribute for a customer profile.

Batch Upsert Customer Custom Attributes

Tool to create or update custom attributes for multiple customers in a single batch request.

Upsert Location Custom Attribute

Tool to create or update a custom attribute for a location.

Batch Upsert Locations Custom Attributes

Tool to create or update custom attributes for multiple locations in a single batch request.

Upsert Merchant Custom Attribute

Tool to create or update a custom attribute for a merchant profile.

Batch Upsert Merchants Custom Attributes

Tool to create or update custom attributes for multiple merchants in a single batch request.

FAQ

Frequently asked questions

With a standalone Square MCP server, the agents and LLMs can only access a fixed set of Square tools tied to that server. However, with the Composio Tool Router, agents can dynamically load tools from Square and many other apps based on the task at hand, all through a single MCP endpoint.

Yes, you can. Pydantic AI fully supports MCP integration. You get structured tool calling, message history handling, and model orchestration while Tool Router takes care of discovering and serving the right Square tools.

Yes, absolutely. You can configure which Square scopes and actions are allowed when connecting your account to Composio. You can also bring your own OAuth credentials or API configuration so you keep full control over what the agent can do.

All sensitive data such as tokens, keys, and configuration is fully encrypted at rest and in transit. Composio is SOC 2 Type 2 compliant and follows strict security practices so your Square data and credentials are handled as safely as possible.

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