Shopify POS vs Square: Best Option for Physical Stores

Opening a brick-and-mortar store? Or looking to upgrade your existing point-of-sale (POS) setup? You’ve probably narrowed it down to two industry leaders: Shopify POS vs Square.

Choosing the wrong system can lead to wasted budget, disjointed inventory tracking, and frustrated customers. This guide breaks down the core differences between the two platforms, so you can pick the best fit for your physical store.

What is Shopify POS?

Shopify POS is a point-of-sale system built to integrate seamlessly with Shopify’s ecommerce platform. It’s designed for merchants who sell across both online and physical channels, offering unified inventory, customer profiles, and sales data across all touchpoints.

You cannot use Shopify POS as a standalone tool—it’s only available as part of a paid Shopify ecommerce plan, starting at $39/month for the Basic tier.

What is Square POS?

Square POS is a standalone point-of-sale system that launched as a mobile payment processor for small businesses. It now offers full-featured POS tools for physical stores, pop-ups, and service businesses, with a free core plan and no long-term contracts.

Square syncs with its own Square Online platform, but works independently of other ecommerce tools for merchants with no online presence.

Key Features: Shopify POS vs Square

Pricing Structure

Square’s core POS plan is completely free, with no monthly fees. You only pay transaction fees: 2.6% + 10¢ per in-person sale, with lower rates available on paid Square for Retail plans ($60/month and up).

Shopify POS is bundled with Shopify ecommerce plans:

• Basic Shopify ($39/month): 2.7% transaction fee for in-person sales
• Shopify ($105/month): 2.5% transaction fee for in-person sales
• Advanced Shopify ($399/month): 2.4% transaction fee for in-person sales

Per Square’s official pricing documentation, paid Square for Retail plans drop in-person fees to 2.5% + 10¢ per sale.

Inventory Management

Shopify POS automatically syncs inventory across your online store and physical locations in real time. Features include bulk editing, barcode scanning, low stock alerts, and multi-location inventory tracking.

Square offers solid inventory tools for physical stores, including barcode scanning and stock counts. However, inventory only syncs with Square Online—if you use a third-party ecommerce platform, you’ll need to manage inventory separately.

Free Square plans have limited bulk inventory editing, while paid Square for Retail plans unlock advanced inventory features.

Hardware Options

Shopify offers proprietary POS hardware, including the all-in-one POS Go device, card readers, receipt printers, and cash drawers. It is compatible with iPads, but not Android devices.

Square has more flexible hardware options: you get a free magstripe card reader when you sign up, and can purchase the all-in-one Square Register, portable readers, or use compatible iPads and Android devices. Square hardware is generally cheaper upfront than Shopify’s proprietary options.

Omnichannel Capabilities

Shopify POS is built for omnichannel retail. It supports buy online pick up in store (BOPIS), ship from store, and unified customer profiles that track purchase history across online and offline channels.

Square supports BOPIS and ship from store only if you use Square Online. If you sell on other platforms (like Amazon, WooCommerce, or a custom site), Square’s omnichannel features are not available.

Reporting and Analytics

Shopify provides detailed, customizable reports covering sales, inventory, and customer behavior across all channels. Higher Shopify plans unlock more advanced analytics, including profit margin tracking and tax report exports.

Square offers strong in-person sales reports, including hourly sales trends and top-selling items. Reports only cover online sales if you use Square Online, and customization options are limited on free plans.

Who Should Choose Shopify POS?

Shopify POS is the better fit for:

• Merchants already using Shopify for ecommerce
• Businesses with both online and physical store presence
• Retailers needing unified inventory and customer data across channels
• Brands planning to scale omnichannel operations long-term

If you’re new to Shopify, our guide to setting up a Shopify store (internal link idea) can help you get started with both online and POS tools.

Who Should Choose Square POS?

Square POS is the better fit for:

• Small businesses with no online presence (physical store only)
• Pop-up shops, food trucks, and temporary retail setups
• Service businesses that need quick, low-cost POS setup
• Merchants who want flexible hardware compatibility (including Android)
• Businesses that want to avoid monthly subscription fees

Frequently Asked Questions

Can I use Shopify POS without a Shopify ecommerce store?

No, Shopify POS is only available as part of a paid Shopify ecommerce plan. You need at least the Basic Shopify plan ($39/month) to access POS features.

Does Square POS charge monthly fees?

Square’s core POS plan is free, with no monthly fees. You only pay transaction fees per sale. Paid Square for Retail plans start at $60/month for advanced inventory and staff management features.

Which POS is better for pop-up shops?

Square is typically better for pop-up shops, thanks to its free base plan, portable hardware options, and no long-term contracts. Shopify POS requires a monthly subscription, which may be less cost-effective for temporary setups.

Can I switch from Square to Shopify POS later?

Yes, you can migrate customer and sales data from Square to Shopify. You may need to manually re-enter some inventory details, but Shopify’s support team can assist with the migration process.

Final Verdict

The choice between Shopify POS vs Square ultimately comes down to your business model. If you sell across online and physical channels, or plan to add ecommerce later, Shopify POS offers unmatched omnichannel tools. If you run a physical store only, want to avoid monthly fees, or need flexible hardware, Square is the more cost-effective choice.

For more tips on managing retail inventory, read our guide to inventory best practices (internal link idea) to keep your physical store stocked efficiently.

Ready to pick your POS? Sign up for a 14-day free trial of Shopify or Square to test their features in your store today!