Shopify POS vs Square 2025: Complete Comparison for Small Businesses
Last Updated: January 2025
Choosing between Shopify POS and Square for your small business? These two industry giants dominate the POS market, but they serve fundamentally different business needs. Shopify excels at omnichannel retail with seamless online-offline integration, while Square offers simplicity and zero monthly fees for businesses focused primarily on in-person sales.
After extensive testing and research, we have broken down everything you need to know about both platforms in 2025. Whether you are running a boutique, pop-up shop, or growing retail empire, this guide will help you make the right choice for your business.
Quick Comparison: Shopify POS vs Square at a Glance
| Feature | Shopify POS | Square POS |
|---|---|---|
| Monthly Software Cost | $29-$299/mo (Shopify plans) + $89/mo for POS Pro | Free basic plan; Plus plans from $29-$69/mo |
| In-Person Transaction Fees | 2.4% – 2.7% + $0.10 | 2.6% + $0.15 |
| Online Transaction Fees | 2.4% – 2.9% + $0.30 | 2.9% + $0.30 |
| Hardware Starting Cost | $49 (card reader) | $0 (mobile swipe reader) |
| Best For | Omnichannel retailers, e-commerce businesses | In-person sellers, simple operations, startups |
| E-commerce Integration | Excellent (native) | Good (built-in) |
| App Integrations | 16,000+ apps | ~450 apps |
| Inventory Locations | Up to 1,000 | Up to 300 |
| Contract Required | No long-term contract | No contract |
| Free Trial | 3 days free | Free forever (basic) |
Quick Verdict: Choose Shopify POS if you sell online and in-store and need seamless inventory sync. Choose Square if you want zero monthly fees and primarily sell in person.
Shopify POS Overview: The Omnichannel Powerhouse
Shopify POS is an extension of the Shopify e-commerce platform, designed for retailers who want to unify their online and physical store operations. When a customer buys something in your store, your online inventory updates instantly. Customer data, order history, and product information stay synchronized across all sales channels.
Shopify POS Key Features
- Unified Commerce: Single dashboard for online store, retail locations, and social selling
- Smart Inventory Management: Real-time inventory tracking across up to 1,000 locations
- Buy Online, Pick Up In-Store (BOPIS): Enable customers to purchase online and collect in-store
- Customer Profiles: Comprehensive purchase history across all channels
- Staff Management: Individual staff logins with customizable permissions
- Advanced Reporting: Detailed sales reports, product performance, and customer insights
- Local Delivery and Shipping: Fulfill orders from any location
- App Ecosystem: Access to 16,000+ apps for extended functionality
Shopify POS Pricing Breakdown
Shopify POS comes in two versions: POS Lite (included with all Shopify plans) and POS Pro (premium features).
Shopify E-commerce Plans (Required)
| Plan | Monthly Cost | In-Person Rate | Online Rate |
|---|---|---|---|
| Basic Shopify | $29/month | 2.7% + $0.10 | 2.9% + $0.30 |
| Shopify | $79/month | 2.5% + $0.10 | 2.6% + $0.30 |
| Advanced Shopify | $299/month | 2.4% + $0.10 | 2.4% + $0.30 |
POS Pro Add-On
- Monthly: $89/month per location
- Annual: $79/month per location (billed yearly)
- Yearly Subscription Special: $67/month per location with free POS Terminal ($349 value) and setup support ($1,500 value)
Shopify POS Pros
- Unmatched omnichannel integration between online and physical stores
- Massive app ecosystem with 16,000+ integrations
- Professional-grade inventory management across multiple locations
- Built-in marketing and SEO tools
- Strong customer support via chat, phone, and email
- Ideal for scaling businesses
Shopify POS Cons
- Requires paid Shopify plan (no truly free option)
- POS Pro adds significant cost for multiple locations
- Learning curve for new users
- Third-party payment processors incur additional 0.6%-2% fees
- Some advanced features only available on higher-tier plans
Square POS Overview: Simplicity and Zero Monthly Fees
Square revolutionized the payment industry by making it easy for anyone to accept credit cards. Their POS system continues this philosophy with a free software plan that includes everything a small business needs to start selling immediately. There are no monthly fees, no contracts, and no hidden costs beyond payment processing.
Square POS Key Features
- Free POS Software: Full-featured POS with no monthly fees
- Simple Pricing: Flat-rate processing with no surprises
- Multiple Product Lines: Square for Retail, Restaurants, Appointments, and more
- Inventory Management: Track stock across up to 300 locations
- Online Store: Free e-commerce website builder included
- Customer Directory: Built-in CRM with purchase history
- Team Management: Clock-in/out, permissions, and scheduling
- Reporting: Real-time sales tracking and analytics
Square POS Pricing Breakdown
Software Plans
| Plan | Monthly Cost | Best For |
|---|---|---|
| Square Free | $0/month | New businesses, simple operations |
| Square Plus | $29/month | Growing businesses needing more features |
| Square Premium | $79/month | Established businesses with custom needs |
Industry-Specific Plans
- Square for Restaurants Plus: $69/month per location
- Square for Retail Plus: $89/month per location
- Square Appointments Plus: $29/month
Transaction Fees
| Payment Type | Fee |
|---|---|
| In-person (tap, dip, swipe) | 2.6% + $0.15 |
| Online payments | 2.9% + $0.30 |
| Manually keyed | 3.5% + $0.15 |
| Invoices (card) | 3.3% + $0.30 |
| Invoices (ACH) | 1% (min $1) |
| Afterpay (BNPL) | 6% + $0.30 |
Square POS Pros
- Completely free to start with no monthly fees on basic plan
- No contracts or long-term commitments
- Simple, transparent pricing
- Free PCI compliance included
- Excellent hardware options at various price points
- Easy setup and intuitive interface
- Strong ecosystem of free add-ons (invoicing, appointments, etc.)
Square POS Cons
- Limited app integrations compared to Shopify (450 vs 16,000+)
- E-commerce features less robust than Shopify
- Processing fees can be higher for high-volume businesses
- Account holds possible with suspicious activity
- Less customizable than enterprise solutions
Head-to-Head Comparison
Pricing Comparison
For a business just starting out, Square wins on cost. You can begin selling immediately with zero monthly fees. However, as your business grows, the math changes.
Scenario: Small boutique processing $10,000/month in-person
- Square (Free plan): $260 in processing fees + $0 monthly = $260/month
- Shopify Basic + POS Lite: $270 in processing fees + $29 monthly = $299/month
Scenario: Growing retailer processing $50,000/month with online sales
- Square: $1,300 processing + $0 monthly = $1,300/month
- Shopify (standard plan): $1,250 processing + $79 monthly = $1,329/month (but with superior e-commerce)
Winner: Square for startups; Shopify provides better value for omnichannel businesses.
Payment Processing Fees
Both platforms use flat-rate pricing, making costs predictable. However, there are notable differences:
- Square: 2.6% + $0.15 in-person (updated February 2025)
- Shopify: 2.4% – 2.7% + $0.10 in-person (depends on plan)
On higher Shopify plans, you save $0.05 per transaction and get lower percentage rates. For high-volume businesses processing over $250,000 annually, both platforms offer custom pricing.
Winner: Shopify on Advanced plan; Square for simplicity.
Hardware Options
Square Hardware
| Device | Price | Best For |
|---|---|---|
| Square Reader (magstripe) | Free (first one) | Mobile sellers |
| Square Reader (contactless) | $49 | Tap payments |
| Square Stand | $149 or $14/mo | iPad-based counter setup |
| Square Terminal | $299 or $27/mo | All-in-one portable |
| Square Register | $799 or $39/mo | Full counter solution |
| Square Handheld | Varies | Mobile with barcode scanner |
Shopify Hardware
| Device | Price | Best For |
|---|---|---|
| Shopify Card Reader | $49 | Mobile payments |
| Shopify POS Terminal | $349 | Countertop checkout |
| Countertop Kit | $459 | Complete counter setup |
| Cash Drawer | $129-$139 | Cash handling |
| Barcode Scanner | $199-$229 | Inventory management |
Winner: Square for variety and entry-level pricing; comparable for full setups.
E-commerce Integration
This is where Shopify dominates. Shopify was built as an e-commerce platform first, and their POS extends that foundation to physical retail.
Shopify E-commerce Strengths:
- World-class online store builder with thousands of themes
- Sell on Amazon, eBay, Facebook, Instagram, TikTok, and more
- Advanced SEO tools and marketing automation
- Buy online, pick up in-store (BOPIS)
- Ship from store functionality
- Unified customer profiles across all channels
Square E-commerce:
- Free online store included
- Basic e-commerce functionality
- Social selling integrations
- Online ordering for restaurants
- Less customization than Shopify
Winner: Shopify by a significant margin.
Inventory Management
Both platforms offer solid inventory management, but Shopify scales better:
- Shopify: Up to 1,000 inventory locations, advanced stock transfers, purchase orders (POS Pro)
- Square: Up to 300 locations, automatic low-stock alerts, vendor management (Plus plans)
For businesses with complex inventory needs across multiple locations, Shopify’s tools are more robust, especially with POS Pro.
Winner: Shopify for multi-location; Square sufficient for simple operations.
Reporting and Analytics
Square Reporting:
- Real-time sales dashboard
- Product performance reports
- Employee sales tracking
- Customer insights
- AI-powered forecasting (2025 feature)
Shopify Reporting:
- Unified reports across all sales channels
- Customer lifetime value tracking
- Product analytics and inventory reports
- Staff performance
- Custom report builder (higher plans)
Winner: Tie – both offer excellent reporting for their target markets.
Who Should Choose Shopify POS?
Shopify POS is the better choice if you:
- Already have a Shopify online store or plan to sell online
- Want seamless inventory sync between online and physical stores
- Need advanced omnichannel features like BOPIS
- Plan to scale to multiple retail locations
- Require extensive app integrations and customization
- Sell across multiple channels (website, social media, marketplaces)
- Need advanced staff permissions and management
Ideal business types: Fashion boutiques, lifestyle brands, retailers with strong online presence, multi-location chains, pop-up shops with existing Shopify stores.
Who Should Choose Square?
Square is the better choice if you:
- Want to start selling immediately with no monthly fees
- Primarily sell in person with limited online sales
- Need a simple, easy-to-use system
- Are a new business watching every dollar
- Want flexible, no-contract terms
- Need industry-specific solutions (restaurants, appointments, retail)
- Prefer straightforward pricing with no surprises
Ideal business types: Coffee shops, food trucks, farmers market vendors, service businesses, small retailers, restaurants, salons, and any business prioritizing simplicity and low cost.
Final Verdict: Which POS Should You Choose in 2025?
The decision between Shopify POS and Square ultimately comes down to your business model:
Choose Shopify POS if: You need a true omnichannel solution that unifies online and in-store sales. The additional cost is justified by superior e-commerce integration, extensive app ecosystem, and scalability for growing businesses. If you are already on Shopify or plan to build a significant online presence, Shopify POS is the clear choice.
Choose Square if: You want to minimize costs and keep things simple. Square’s free tier is unbeatable for businesses just starting out or those focused primarily on in-person sales. The platform is intuitive, requires no technical expertise, and lets you start accepting payments within minutes.
Our Recommendation: For most small businesses starting in 2025, begin with Square to test your market with minimal financial risk. As your business grows and you need more sophisticated e-commerce and omnichannel capabilities, consider migrating to Shopify. Both platforms make it relatively easy to switch, so you are not locked into a permanent decision.
Frequently Asked Questions
Can I use Shopify POS without an online store?
Yes, you can use Shopify POS for in-store sales only. However, you still need a Shopify subscription (starting at $29/month), even if you do not plan to sell online. This makes Shopify less cost-effective than Square for businesses with no e-commerce ambitions.
Is Square really free? What is the catch?
Square’s basic POS software is genuinely free with no monthly fees, contracts, or hidden costs. The catch is that Square makes money on transaction fees (2.6% + $0.15 per in-person transaction). For businesses with low sales volume, this model is often more affordable than subscription-based systems. High-volume businesses may benefit from negotiated rates or subscription plans with lower processing fees.
Which has better hardware: Shopify POS or Square?
Square offers more hardware variety at various price points, including a free magstripe reader to get started. Shopify’s hardware is high-quality but more limited in options. Both offer comparable flagship terminals (Square Terminal at $299 vs Shopify POS Terminal at $349). For businesses on a tight budget, Square’s lower entry point is advantageous.
Can I switch from Square to Shopify POS (or vice versa)?
Yes, both platforms allow you to export your data, including products, customers, and sales history. Migration typically takes a few hours to a few days depending on your catalog size. Neither platform charges cancellation fees, making switching relatively painless. Some third-party apps can help automate the migration process.
Which POS is better for restaurants: Shopify or Square?
Square for Restaurants is specifically designed for food service businesses with features like table management, kitchen display systems, menu modifiers, and tip management. Shopify POS is primarily designed for retail and lacks restaurant-specific features. For restaurants, cafes, and food trucks, Square is the clear winner.
Do Shopify and Square offer customer loyalty programs?
Both platforms offer loyalty programs as add-ons. Square Loyalty starts at $45/month per location and includes points-based rewards and marketing campaigns. Shopify offers various loyalty apps through their app store, with pricing varying by provider. Both integrate loyalty data with their respective POS systems for seamless customer tracking.
What happens if the internet goes down? Can I still process sales?
Both Shopify POS and Square offer offline mode, allowing you to continue accepting payments when internet connectivity is lost. Transactions are stored locally and processed once connectivity is restored. However, offline mode has limitations – some features may be unavailable, and there are typically caps on transaction amounts in offline mode for security purposes.
Ready to Choose Your POS System?
Both Shopify POS and Square are excellent point-of-sale solutions backed by reputable companies with strong track records. Your choice should align with your business model, growth plans, and budget constraints.
Get started today:
- Read our full Shopify POS Review
- Read our full Square POS Review
- Compare all POS systems side-by-side
This article was last updated in January 2025. Pricing and features may change. Always verify current information on the official Shopify and Square websites before making a purchasing decision.
