Square vs Shopify

Square is the best free POS for in-person selling. Shopify is the best platform for businesses where online and in-store need to work as one. The monthly fee difference disappears fast when you factor in what each does best.

Our Verdict

Square for in-person focused retail. Shopify for omnichannel. If online is more than 20% of your sales, Shopify's integrated platform saves enough time and prevents enough inventory headaches to justify the monthly cost.

Best for:

In-person only retail: Square
Omnichannel retail (online + store): Shopify POS
Starting with zero budget: Square
Scaling e-commerce brand opening retail: Shopify POS

Feature Comparison

FeatureSquareShopify POSWinner
Monthly cost$0 (Free plan)$89/mo (Basic + POS)Square
Processing (in-person)2.6% + 10¢2.4-2.7% (plan dependent)Tie
E-commerceBasic, freeBest-in-classShopify POS
Inventory syncGoodExcellent, real-timeShopify POS
App ecosystemLargeMassive (8000+ apps)Shopify POS
Hardware optionsExcellent varietyGood but fewerSquare
Ease of useVery easyEasySquare
Multi-locationFreeIncludedTie

Square

Pros

  • Free to start
  • Dead simple setup
  • Great hardware range
  • Strong invoicing

Cons

  • E-commerce is basic
  • Processing fees add up at volume
  • Inventory less sophisticated

Shopify POS

Pros

  • E-commerce king
  • True omnichannel inventory
  • Huge app ecosystem
  • Better at scale

Cons

  • Monthly fees
  • POS is secondary to e-commerce
  • Overkill for simple retail

In-Depth Analysis

The Real Cost Calculation

Square's 'free' costs 2.6% + 10¢ per swipe. On $20k/month in sales, that's $540 in processing. Shopify Basic ($39) + POS Pro ($89) = $128/month, but processing at 2.4% saves $40/month. Add the e-commerce value and Shopify often wins on total cost at $15k+ monthly sales.

Inventory Truth

Square syncs inventory between online and POS, but Shopify was built for this. Sell something online, it's instantly updated in-store. Run out at one location, show it in another. If inventory sync matters, Shopify's architecture is fundamentally better.

The Scaling Factor

Square is perfect for starting. But businesses doing $50k+/month often find themselves wanting more—better reporting, more integrations, sophisticated inventory. Shopify scales without switching platforms. Square may require jumping to another system later.

Frequently Asked Questions

Can I use Square for my Shopify store?

Not directly. They're competing ecosystems. You'd need to run separate systems and manually sync, which defeats the purpose. Pick one platform and commit for best results.

Which has better reporting?

Shopify's reporting is more sophisticated, especially for omnichannel. Square's free reporting is excellent for the price. Both let you export data if you want to analyze elsewhere.