Shopify POS vs Square: Key Differences
Shopify POS and Square might look similar at first—they both help businesses take payments, manage inventory, and track sales. But they each have a different focus and are designed for different needs.
Shopify POS is great for businesses that want to sell both online and in person. It’s perfect for eCommerce businesses that are expanding into physical retail stores. If you’re looking for a system that connects your online and offline sales seamlessly, Shopify POS is a solid choice.
Square, on the other hand, is a simple, all-in-one solution that works well for businesses of any size. It’s a good fit for small shops or service-based businesses. Square is especially appealing if you want easy-to-understand pricing and hardware that’s quick to set up.
What Is Shopify POS?
Shopify POS is part of Shopify, the popular eCommerce platform used worldwide. This point-of-sale system connects directly to your Shopify online store, making it easy to manage both in-person and online sales in one place.
Easy Integration with Shopify: Perfect for businesses already using a Shopify store.
Omnichannel Tools: Connect your online and in-store operations for a smooth customer experience.
Flexible Options: Choose Shopify POS Lite, included for free with any Shopify plan, or upgrade to Shopify POS Pro for advanced features like detailed reports and staff management.
Shopify POS is ideal for retail businesses that want to combine the benefits of eCommerce with physical store sales. It helps you stay connected to customers wherever they shop.
What Is Square POS?
Square’s POS system is one of the easiest payment solutions for startups and small businesses to use. It started as a simple credit card reader but has grown into a full POS system with features like payment processing, inventory management, and marketing tools.
No Monthly Fees for Basic POS: The free plan is a great option for small businesses just starting out.
Flexible Hardware Options: Whether you need a mobile credit card reader or a stylish terminal, Square has you covered.
Fits Many Business Types: Perfect for restaurants, retail shops, and service providers.
Square is a great choice for small business owners who need a simple, affordable, and easy-to-use POS system with no long-term commitments.
Shopify POS vs Square: A Detailed Comparison
1. Pricing and Fees
| Shopify POS | Square POS | |
|---|---|---|
| Software Cost | - Starter Plan: $5/month (includes 1 POS Lite location) - Retail Plan: $89/month (includes POS Pro features) | - Standard Plan: $0/month (free POS software) |
| Transaction Fees | - Online Transactions: 2.9% + 30¢ per transaction; - In-Person Transactions: 2.6% + 10¢ per transaction; - Third-Party Payment Providers: Additional 2% fee | - Card-Present Transactions: 2.6% + 15¢ per transaction; - Card-Not-Present Transactions: 2.9% + 30¢ per transaction; - Keyed-In Transactions: 3.5% + 15¢ per transaction |
| Additional Fees | - POS Pro Add-On: $89/month per location for advanced features | - Custom Rates: Available for businesses processing over $250K annually |
📌 Key Takeaway: Square has a lower cost for small businesses, but Shopify is better integrated with eCommerce.
2. Hardware and Compatibility
Shopify POS Hardware
| Hardware | Description | Price |
|---|---|---|
| POS Terminal Countertop Kit | A complete, wired solution ideal for countertop sales. This kit includes the POS Terminal but does not include a tablet. | $459 |
| Tap & Chip Card Reader | A versatile card reader designed for accepting tap and chip payments both at the counter and on the go. | $49 |
| Tap to Pay on iPhone | Enables merchants to accept contactless payments directly using a compatible iPhone, eliminating the need for additional hardware. | Free |
| Tap to Pay on Android | Allows merchants to accept contactless payments using a compatible Android device without additional hardware. | Free |
Square POS Hardware
| Hardware | Description | Price |
|---|---|---|
| Square Register | An all-in-one point-of-sale system featuring a seller display and a detachable customer-facing display. It includes an embedded payment system that accepts tap, dip, and swipe transactions. | $799 |
| Square Stand | A stand that transforms an iPad into a complete point-of-sale system with built-in payments and an intuitive checkout process, eliminating the need for separate card readers. | $149 |
| Square Terminal | A portable, all-in-one device that allows businesses to accept payments, print receipts, and more, offering mobility and flexibility in sales operations. | $299 |
| Square Reader for Contactless and Chip | A compact reader that connects wirelessly to devices, enabling acceptance of chip cards and contactless payments like Apple Pay and Google Pay. | $59 |
| Square Reader for Magstripe | A small, portable reader that plugs into a phone or tablet, allowing businesses to accept swipe card payments on the go. The first reader is free; additional readers can be purchased as needed. | Free¹ |
¹The first Square Reader for Magstripe is free; subsequent readers may incur a cost.
📌 Key Takeaway: Shopify has a strong mobile-first approach, while Square offers an all-in-one standalone solution.
3. Features and Functionality
| Feature | Shopify POS | Square POS |
|---|---|---|
| Inventory Management | Multi-channel syncing, low stock alerts | Basic inventory tracking, advanced features with Square for Retail |
| Customer Profiles | Integrated CRM, order history | Basic customer profiles, loyalty program add-ons |
| eCommerce Integration | Seamless Shopify store connection | Syncs with Square Online store |
| Reporting & Analytics | Advanced reports in POS Pro | Basic reports, advanced with Square for Retail |
| Multi-Location Support | Yes (with POS Pro) | Yes (with paid plans) |
📌 Key Takeaway: Shopify is ideal for eCommerce-first businesses, while Square is better for in-person retail.
4. Ease of Use & Setup
| Shopify POS | Square POS | |
|---|---|---|
| Setup Process | Requires Shopify account and store setup | Quick, standalone setup |
| User Interface | Customisable interface with apps | Simple and beginner-friendly |
| Learning Curve | Slightly more complex due to integrations | Easy to use for any business |
| Employee Management | Advanced role permissions (POS Pro) | Employee access control available |
📌 Key Takeaway: Square is easier for beginners, while Shopify is better for businesses needing advanced customisations.
5. Payment Processing & Payout Speed
| Shopify POS | Square POS | |
|---|---|---|
| Accepted Payments | Credit/Debit, Apple Pay, Google Pay, BNPL | Credit/Debit, Apple Pay, Google Pay, BNPL |
| Payout Speed | 1-3 business days (Shopify Payments) | Next-day deposits (Instant available for fee) |
| Fraud & Dispute Tools | Chargeback management tools | Fraud prevention and chargeback protection |
📌 Key Takeaway: Square offers faster payouts, while Shopify provides strong fraud management tools.
6. Scalability & Best for Different Businesses
| Business Type | Best Choice |
|---|---|
| Small Retail Stores | Square (affordable & easy to use) |
| Online-First Brands | Shopify (seamless eCommerce integration) |
| Multi-Location Retail | Shopify POS Pro (advanced features) |
| Restaurants & Food Businesses | Square (dedicated restaurant POS) |
| High-Volume Sales | Both offer custom pricing |
📌 Key Takeaway: Shopify is better for eCommerce-based businesses, while Square is great for brick-and-mortar stores.
Shopify POS vs Square: Pros & Cons
| Shopify POS | Square POS | |
|---|---|---|
| Pros: | - Best-in-class omnichannel features; - Seamless integration with Shopify’s eCommerce tools; - Advanced reporting and customisation. | - No monthly fees for the basic POS plan; - Extensive hardware options; - Easy to use and set up; - Compact and portable card reader. |
| Cons: | - Higher initial costs; - Not the best option for non-Shopify businesses. | - Limited advanced features in free plans; - Omnichannel features are less robust than Shopify. |
Can I Use Square POS with Shopify?
Square POS and Shopify are both widely used point-of-sale systems, but they don’t work together directly. This means you can’t use Square POS to process transactions in a Shopify store without extra steps. Some businesses still choose to use both systems by using third-party tools or manually syncing sales data. However, this can take a lot of time and may cost extra if you need integration tools. Before deciding to use both Square and Shopify, it’s important to think about your business needs and whether the extra effort and cost are worth it.
Shopify POS vs Square: Which One Should You Choose?
If you already use Shopify for your online store → Shopify POS is the best option for seamless integration.
If you're a small business looking for a simple, cost-effective in-person POS, Square is the way to go.
If you need advanced retail features like multi-location support and staff management → Shopify POS Pro.
If you want faster payouts and built-in POS hardware, Square is the better fit.
💡 Pro Tip: Consider a trial of each POS system to see which works best for your business!
Both Shopify POS and Square are reliable tools that can help improve your business operations. Take some time to think about what your business needs most to find the best fit.
