Best Free POS Systems in 2025: Complete Guide
Looking for a POS system without monthly fees? Free POS options have matured significantly, offering real business value without upfront software costs. Here is your complete guide to the best free POS systems in 2025.
Important: “Free” Defined
Free POS systems eliminate monthly software fees but charge for payment processing. You will pay 2.5-3% per transaction. For most small businesses, this is more cost-effective than paying monthly fees plus separate processing.
Top Free POS Systems for 2025
1. Square – Best Overall Free POS
Monthly Fee: $0
Processing: 2.6% + $0.10 (in-person)
Best For: Any small business – retail, restaurants, services
What You Get Free:
- Full POS software with inventory management
- Unlimited items and categories
- Sales reporting and analytics
- Customer profiles and marketing
- Free online store (Square Online)
- Unlimited team members
- 24/7 phone support
Hardware: Free card reader with account. Terminal $299, Register $799.
2. Toast Starter Kit – Best Free Restaurant POS
Monthly Fee: $0
Processing: 2.99% + $0.15 (higher than paid plans)
Best For: New restaurants wanting to minimize upfront costs
What You Get Free:
- Restaurant POS software
- Menu management
- Basic reporting
- Cloud access
- One terminal included
Note: Processing is higher on free plan. Growing restaurants should consider paid tiers.
3. PayPal Zettle – Best for Payment Flexibility
Monthly Fee: $0
Processing: 2.29% + $0.09 (in-person)
Best For: Businesses wanting lower processing with no monthly fee
What You Get Free:
- POS app for iOS and Android
- Product catalog
- Basic inventory tracking
- PayPal integration
- Reporting dashboard
Note: Lowest processing rate among free options.
4. Square for Restaurants – Best Free Restaurant Features
Monthly Fee: $0 (Free plan available)
Processing: 2.6% + $0.10
Best For: Small restaurants, cafes, food trucks
What You Get Free:
- Restaurant POS interface
- Table management (basic)
- Menu customization
- Online ordering integration
- Basic kitchen tickets
5. Loyverse – Best Free Features for Retail
Monthly Fee: $0
Processing: Bring your own processor
Best For: Small retail shops, cafes
What You Get Free:
- Full POS software
- Inventory management
- Employee management
- Customer loyalty
- Basic analytics
Note: Choose your own payment processor – gives flexibility but requires setup.
Free POS Comparison Table
| Feature | Square | Toast Starter | PayPal Zettle | Loyverse |
|---|---|---|---|---|
| Monthly Fee | $0 | $0 | $0 | $0 |
| Processing Rate | 2.6% + $0.10 | 2.99% + $0.15 | 2.29% + $0.09 | BYOP |
| Best For | Any business | Restaurants | Low rates | Retail |
| Inventory | Yes | Basic | Basic | Yes |
| Online Store | Yes (free) | Paid add-on | No | No |
| Support | 24/7 phone | 24/7 phone | Business hours | |
| Hardware | Reader free | Terminal incl. | $29 reader | BYOD |
What “Free” Really Costs
Understanding the true cost of free POS:
Processing Fees Add Up
At 2.6%, a business processing $10,000/month pays $260 in fees. This is often less than monthly software fees plus separate processing, but calculate for your volume.
Example Monthly Costs
| Monthly Sales | Square Free (2.6%) | Paid POS ($69) + 2.3% |
|---|---|---|
| $5,000 | $130 | $184 |
| $10,000 | $260 | $299 |
| $25,000 | $650 | $644 |
| $50,000 | $1,300 | $1,219 |
Takeaway: Free is best for businesses under $25K/month in sales. Above that, paid plans with lower processing may save money.
Features in Free vs. Paid Plans
What Free Plans Include
- Core POS functionality
- Basic inventory management
- Sales reporting
- Customer profiles
- Payment processing
- Receipt printing/emailing
- Basic support
What Paid Plans Add
- Advanced inventory (purchase orders, transfers)
- Advanced reporting and custom dashboards
- Loyalty programs
- Kitchen display systems (restaurants)
- Staff scheduling
- Multi-location features
- Priority support
- Lower processing rates
Who Should Use Free POS?
Ideal For:
- New businesses testing the market
- Pop-up shops and market vendors
- Small retailers with simple inventory
- Food trucks and small cafes
- Service providers with occasional sales
- Businesses processing under $25K/month
Consider Paid Plans If:
- You process over $25K-$50K/month (lower rates save money)
- You need advanced inventory management
- You run a full-service restaurant
- You have multiple locations
- You need loyalty programs included
Frequently Asked Questions
Is Square really free?
Yes, Square POS software has no monthly fee. You pay only processing fees (2.6% + $0.10 per transaction). Hardware is separate but a basic reader is free.
What is the catch with free POS?
The “catch” is payment processing fees built into every transaction. However, this is transparent and often lower total cost than monthly fees + separate processing.
Can I grow with a free POS?
Yes. Square, Toast, and others offer free tiers that you can upgrade when needed. Start free, add paid features as your business grows.
Which free POS has the best features?
Square offers the most comprehensive free tier with inventory, online store, and reporting included. Toast free has restaurant-specific features but higher processing.
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