Square or Shopify POS? Choosing the Right System for Retailers

For retailers looking to streamline their in-store and online sales, selecting the right Point of Sale (POS) system is crucial. Two of the most popular options available today are Square POS and Shopify POS. Both platforms offer excellent features, but they cater to different business needs. Understanding their strengths and limitations can help you choose the best system for your retail business.

Understanding Shopify POS

Square vs Shopify POS is designed for businesses that already use or plan to use Shopify for their e-commerce store. It allows retailers to unify online and offline sales, ensuring a seamless shopping experience for customers. With Shopify POS, businesses can manage inventory, orders, and customer data across multiple channels in real time.

Key Benefits of Shopify POS

1. Omnichannel Selling—Shopify POS is ideal for businesses that sell both online and in physical stores. The system syncs all sales, inventory, and customer data in one dashboard.

2. Seamless Integration—Since it is part of the Shopify ecosystem, it connects effortlessly with Shopify’s e-commerce platform, payment system, and apps.

3. Advanced Inventory Management—Businesses with multiple locations can track inventory in real-time, making stock management more efficient.

4. Customizable Checkout Experience—Shopify POS offers features like custom discounts, loyalty programs, and flexible payment options to enhance the customer experience.

Understanding Square POS

Square POS is an easy-to-use and cost-effective point-of-sale system designed for small businesses, restaurants, and service-based retailers. Square offers a free POS app that works on tablets and smartphones, making it accessible for businesses of all sizes.

Key Benefits of Square POS

1. Affordable & Easy Setup – Square POS is known for its simple pricing and quick setup, making it an excellent choice for small businesses.

2. Built-In Payment Processing—Square provides its payment processor, eliminating the need for third-party payment gateways.

3. Versatile Hardware – Square offers card readers, terminals, and registers that work for businesses of all types, from food trucks to retail stores.

4. No Monthly Fees for Basic Use – Unlike Shopify POS, Square provides a free POS app, with additional features available at a monthly cost.

Comparing Shopify POS vs. Square POS

1. Pricing

• Shopify POS requires a Shopify subscription, starting at $39/month for the basic plan. Shopify POS Pro, which includes advanced features, costs $89/month per location.

• Square POS offers a free plan, but charges transaction fees of 2.6% + 10¢ per in-person sale. Businesses needing more features can opt for paid plans starting at $29/month.

2. Best for Online & In-Person Sales

• Shopify POS is better for businesses that prioritize omnichannel sales, as it connects online and offline stores effortlessly.

• Square POS is ideal for small businesses that need a standalone POS system without an online store.

3. Payment Processing

• Shopify POS allows merchants to use Shopify Payments or third-party gateways but charges extra fees for external payment processors.

• Square POS includes its payment processing system with no additional setup required.

Which One Should You Choose?

• Choose Shopify POS if you already use Shopify for your e-commerce store and want a seamless omnichannel experience. It’s best for businesses that sell online and in physical locations.

• Choose Square POS if you’re a small or brick-and-mortar business looking for an easy-to-use and budget-friendly POS system with built-in payment processing.

Final Thoughts

Both Square POS and Shopify POS offer powerful features for retailers, but your decision should be based on your business model and growth strategy. If you rely on online sales and want to integrate your e-commerce and retail stores, Shopify POS is the better choice. However, if you need a simple, cost-effective solution with built-in payments, Square POS is a strong contender. Carefully evaluate your business needs to pick the POS system that aligns with your goals and budget.