Both platforms provide POS systems, but their full range of services encompasses much more. See which pricing and feature sets will fit your business better.
Shopify vs Square: These two giants of the payments industry both support online and in-person sales with payment processing, POS systems, online store builders, and more, so we’ve pitted them against each other for this in-depth comparison.
Read on to see which provider is best for growing your business. Then, check out our Square review and our Shopify review for even closer examinations of these two payment processors.
Finally, our list of the best credit card processors for small businesses gives you a broader look at the industry’s top players.
Shopify VS Square: At A Glance Comparison
These POS giants both offer similar tools for online and in-person sales. However, the differences are apparent when you look at pricing. Square charges no subscription fees and offers a (nearly) universal flat rate for all transactions. Shopify charges monthly fees, and its processing fees go down if you get a higher-tier plan.
|
Shopify |
Square |
Ideal For |
- Larger retailers
- Online merchants
- Social media sales
|
- New sellers
- Smaller retailers
- Foodservice businesses
|
Pricing |
- Starts at $5/month ($29/month if you want an online store)
- Starts at 2.9% + $0.30 (online)
- Starts at 2.7% (swiped/dipped/tapped)
|
- Starts at $0/month
- 2.9% + $0.30 (online)
- Starts at 2.6% + $0.10 (swiped/dipped/tapped)
|
Integrations |
2,000+ |
300+ |
Standout Features |
- Strong POS system
- 2,000+ integrations
- 24/7 customer service
- No fixed fee for card-present transactions
|
- No monthly fees for standard plans
- Great mPOS system
- Free online store with a Square domain
- Specialized POS apps for retail, foodservice, and appointment booking
|
What’s Missing |
- No free plan
- No specific POS apps for restaurants or appointment scheduling
- No offline mode for in-person sales
|
- No 24/7 phone support
- Less built-in eCommerce functionality
- No multicurrency acceptance
|
Where Square Wins
Square is an industry-standard for POS systems everywhere. The Square ecosystem has grown and expanded to include an exceptional suite of features and options. Here are the areas where Square has a leg-up over Shopify:
- Specialized POS apps for restaurants, retail, and appointment scheduling
- Can sell online without paying a monthly fee
- Free magstripe card reader
- POS systems have great offline capabilities
Where Square Falls Short
Square is ideal for new merchants just starting, and its POS offerings appeal to a wide range of businesses, but larger eCommerce businesses may feel confined by Square. Here’s where Square is limited:
- Limited international reach
- No 24/7 phone support
- Account stability issues
- May not be suitable for large businesses
Where Shopify Wins
Shopify offers an ideal platform for global sellers, with loads of international selling features and compatible currencies. It also offers savings over Shopify for brick-and-mortar merchants with average tickets on the smaller side.
- Superb eCommerce features
- Great for international sales
- No fixed fee for POS transactions (just a percentage fee)
- 24/7 phone support
- 2,000+ eCommerce integrations
Where Shopify Falls Short
Shopify has excellent features. However, you can’t escape the monthly fees.
- All eCommerce plans carry a monthly fee
- Platform fee of 0.5%-2% if you use a payment processor other than Shopify Payments
- Account stability issues
Square VS Shopify: Fees & Pricing Comparison
While Shopify and Square have similar transaction fees at the basic subscription level, Shopify doesn’t offer a plan without a monthly fee as Square does. Other pricing differences arise when you look at the higher-tier subscriptions and POS equipment these companies provide.
|
Shopify |
Square |
Online Store |
- Shopify Starter: $5/month
- Basic Shopify: $29/month
- Shopify: $79/month
- Advanced Shopify: $299/month
|
- Free: $0/month
- Plus: $29/month
- Premium: $79/month
|
Point Of Sale |
- One free POS Lite location included with paid eCommerce plan
- Shopify POS Pro: $89/month/location
|
- Free plan available
- Square For Retail:
- $0-$89/month
- Square For Restaurants: $0-$60/month/location
- Square Appointments: $0-$69/location/month
|
Mobile POS |
Included with the Shopify POS app |
$0/month |
Credit Card Reader |
$49 |
$0-$59 |
Online Transactions |
- 2.9% + $0.30 per transaction (with Shopify Payments)
- 2.6% + $0.30 with the Shopify plan
- 2.4% + $0.30 with Advanced Shopify
|
- 2.9% + $0.30 per transaction
- 2.6% +$0.30 with the Premium plan
|
In-Person (Swiped/Dipped/Tapped) Transactions |
- Basic Shopify: 2.7%
- Shopify: 2.5%
- Advanced Shopify: 2.4%
|
- 2.6% + $0.10 per transaction
- 2.5% + $0.10 with a Plus subscription to the Retail & Appointments POS packages
|
Chargeback Fee |
$15 |
No chargeback fee |
Refund Fee |
Shopify keeps the transaction fee |
Square keeps the transaction fee |
|
Try Shopify |
Try Square |
In terms of pricing, Square has the edge over Shopify under most scenarios. Shopify’s monthly fees can add up over time, especially with add-ons. If Shopify’s tools help you run/expand your business, it may still be worth it. However, Square packs a lot of value in its free tools, especially for the budget-minded.
Finally, large businesses take note: With both Shopify and Square, you may qualify for custom enterprise-level feature packages, pricing for which is quote-based and must be negotiated.
Shopify VS Square: Feature Comparison
Square and Shopify have a lot in common, but the differences become apparent upon closer examination. On the whole, Shopify offers the stronger (albeit pricier) all-in-one eCommerce package, while Square has a more versatile POS ecosystem with packages tailored to eateries and retailers.
|
Shopify |
Square |
Industry-Specific POS Apps |
|
|
Receipts (POS) |
Print, email & text |
Print, email & text |
Offline Capabilities (POS) |
Limited |
Strong |
Accept All Forms Of Payments (POS) |
|
Limited |
Reporting (POS) |
Excellent |
Good |
Integrations With Third-Party Payment Gateways (POS) |
|
|
Credit Card Readers |
|
|
Retail Kits |
|
|
All-In-One Credit Card Terminals With Screens |
(Shopify POS Go) |
(Square Terminal) |
Omnichannel Features |
|
|
Free eCommerce Website |
|
|
Shipping Features & Discounts |
Excellent |
Good |
International Sales Support |
Excellent |
Limited |
Multichannel Selling |
15 platforms |
7 platforms |
Integrations |
2,000+ integrations |
300+ integrations |
24/7 phone support |
|
(weekdays from 6 AM-6 PM PST only) |
Feature-wise, we’ll get deeper into the weeds below. However, there are some key takeaways here. Regarding in-person sales, Square excels, especially for restaurants, small- to mid-sized retailers, and businesses with appointment-setting needs. Square also offers a compelling eCommerce package for those who don’t want to pay a monthly fee and a decent package for those willing to pay a monthly fee.
On the other hand, Shopify isn’t quite as flexible when it comes to in-person sales, but for eCommerce businesses — particularly larger ones — Shopify’s features are stronger and more scalable than those of Square. International sellers, in particular, will find eCommerce to be much easier with Shopify than with Square.
Shopify POS VS Square Software Differences
Shopify’s POS and Square’s free Point of Sale app are both available for iOS and Android smartphones and tablets. You’ll need an iPad to make the best use of either app, as many of the best features are only available there. Let’s review what each provider offers in terms of POS software features.
- Industry-Specific POS Apps: As mentioned earlier, Square offers specialized POS packages for restaurants, retailers, and appointment-setting along with its standard free POS. Square even offers a slimmed-down kitchen display system for eateries that don’t need a full POS. Shopify does not; it only offers one POS system (albeit a very capable one).
- Receipts: Both Shopify and Square let you offer receipts to your customers via print, email, and SMS (text).
- Offline Capabilities: Only Square lets you process payments while in offline mode. Shopify’s offline mode is much more limited. Points for Square here.
- Tax Rate Calculation: Here’s an area where Shopify wins out — taxes are auto-detected based on your store’s location, whereas with Square, you have to enter tax rates manually.
- Team Management: Shopify includes team management features at all subscription tiers. Square offers basic team management at all levels, while advanced team management (Team Plus) will cost you $35/month/location.
- Gift Cards: We like that Square lets you sell gift cards at all subscription levels. With Shopify, you’ll need a higher-tier $79/month subscription (confusingly titled the “Shopify Plan”) to sell gift cards.
- Payment Method Acceptance: Both Shopify and Square POS let you accept credit/debit cards, mobile wallet payments, and just about any other payment method a customer might present (including cash and checks).
- Reporting: Shopify POS gives you reporting capabilities, but you’ll need at least a $79/month Shopify subscription to get advanced reporting. Likewise, Square POS offers reporting, but it’s not terribly deep. Square’s industry-specific POS packages offer more advanced reporting.
Square VS Shopify eCommerce Features
eCommerce has always been Shopify’s bread and butter, so it’s no surprise that Shopify’s eCommerce capabilities are second-to-none. Square is no slouch in this regard either, though we have to give the overall edge to Shopify here.
- For most businesses, selling online with Shopify will cost more than Square due to Shopify’s inescapable monthly fees and pricier premium plans. However, Shopify’s highest-tier plan (Advanced Shopify) offers processing at just 2.4% + $0.30 per transaction — lower than the Square Premium plan rate of 2.6% + $0.30. If your sales volume is high enough, you may save enough with Advanced Shopify over Square Premium to cover the higher monthly fee ($299/month vs. $72/month).
- Square offers most of the same eCommerce features as Shopify, but Shopify’s tools tend to be more scalable. Successful online businesses tend to grow, and Shopify’s selling tools are generally better equipped to keep pace with you as your sales volume increases.
- As you’ll see in the next section, Shopify offers more eCommerce features than Square’s free store. However, some of Square’s supported shopping cart integrations — BigCommerce and 3dcart (now Shift4Shop) in particular — are on par with Shopify’s offerings.
Square Website VS Shopify Features
Shopify offered its online store builder from the beginning, while Square’s eCommerce website capabilities were limited until it acquired Weebly’s website builder (now Square Online) in 2019. Overall, Shopify’s websites are superior in terms of web design.
- With Square Online, your eCommerce website is automatically generated based on your color palette and style choices, whereas Shopify offers a whole library of online store templates (a few of which are free; the rest are paid) and more advanced site customization. Advantage: Shopify.
- Hosting is free with both providers, and when it comes to domains, you can use a free Square or Shopify subdomain, or you can purchase one — Shopify’s domains start at $15/year, while Square’s domains start at $19.95/year. With a Plus subscription or above, you can get a custom domain from Square and use it for free for one year.
- Both Shopify and Square let you connect your current domain for no extra charge. Doing this with Square requires a Plus plan subscription — you can’t do it with the free plan. (Of course, Shopify doesn’t have a free plan.)
Shopify VS Square Online Store
|
Shopify |
Square Online |
Pricing |
Starts at $5/month for payment buttons/links & $29/month for a full online store |
Starts at $0/month |
Free Domain For 1 Year |
— Domains must be purchased (from $15/year) unless you use a free myshopify.com subdomain |
— with a Professional plan or above; after a year, domains start at $19.95/year (or you can use a free Square subdomain) |
Bring Your Own Domain |
— no additional charge |
— with a Plus plan or higher |
Includes Web Hosting |
— no additional charge |
— no additional charge |
Abandoned Cart Reminders |
— with the Basic Shopify plan and above |
— with the Plus plan and above |
Cross-Channel Selling |
|
|
Premade Store Templates |
|
Limited |
Order Management |
— in the app and your dashboard |
Only in your dashboard, not the app |
Square VS Shopify: Omnichannel Features
Both Shopify and Square support multichannel sales, but Shopify has a higher channel count. Here are the channels supported by each:
|
Shopify |
Square |
Google |
|
|
Facebook |
|
|
Instagram |
|
|
Pinterest |
|
|
TikTok |
|
|
Etsy |
|
|
Amazon |
|
|
Walmart |
|
|
Ecwid |
|
|
eBay |
|
|
Handshake |
|
|
Emadri |
|
|
Rakuten Ichiba (Japan) |
|
|
MyDeal Australia |
|
|
Wanelo |
|
|
Lyst |
|
|
Customer Management & Loyalty Differences
Shopify is known for its great CRM (Customer Relationship Management) features. You can create profiles for your customers, allowing you to send them receipts via email and build an email list for marketing. With these profiles, you can group customers by location, shopping tendencies, and demographics. Shopify also offers a number of customer loyalty apps (which tend to have both free and paid versions), so you can offer rewards and personalized bonuses to your customers.
For its part, Square offers a loyalty program that starts at $45/month/location and offers similar customer relationship benefits. Customers can earn loyalty rewards and discounts automatically, and that information gets stored on their customer profile. However, you can provide digital gift cards under Square’s standard system without paying extra and easily store and search customer balances and other information.
Square VS Shopify: Integrations
Both Square and Shopify are awash in integrations. Both companies’ eCommerce platforms have integrations for just about any function you can think of. However, in comparing Square Online Store vs. Shopify, I have to give the edge to Shopify here, and the reasons are twofold.
First, Shopify integrates with over 2,000 eCommerce apps, while Square offers a choice of more than 300 integrations covering everything from form building to restaurant tools, delivery & ordering, and even healthcare. Second, with Shopify, you can integrate more than 100 payment gateways with your POS app. With Square, you must use Square’s in-house payment gateway.
Square VS Shopify: Inventory Management
Shopify’s inventory features are pretty impressive. In addition to tracking your stock levels across every channel where you sell, you can print barcodes and more. Multilocation inventory management is only available with a Shopify Standard or Advanced plan.
Square has a solid free inventory management system. You can also upgrade to Square for Retail Plus ($60/month/location) for more features or integrate with other inventory services, such as Shopventory.
|
Shopify |
Square |
Partial Returns |
|
|
Exchanges |
with Shopify POS Pro ($89/month/location) |
with Square For Retail ($0-$60/month/location) |
Multilocation Inventory |
|
|
Store Credit |
|
|
Vendor/Supplier Management |
with Shopify POS Pro ($89/month/location) |
with Square for Retail ($0-$60/month/location) |
Buy Online, Pick Up In-Store |
|
|
Differences In Marketing Tools Between Shopify & Square
Shopify offers coupons, gift cards, and discount features with its paid plans (starting with Basic Shopify). Users can create coupon discount codes and coupons, including BOGO, that apply to specific products or categories. You can also limit those to a specified number of users, certain groups, or a minimum order total.
Square offers some marketing tools, such as customer insights and statistics, customer profile management, and tools that let customers sign up for your mailing list. For more advanced marketing features, you’ll need a subscription to Square Marketing, which starts at $15/month for up to 500 customer contracts.
Square Vs Shopify: Hardware Compared
Both Square and Shopify offer credit card readers along with full-fledged retail kits with everything you need for a conventional register setup.
At the very least, you’ll need a card reader to use with your smartphone or tablet. If you go that route, Square’s free magstripe reader is something I’d only recommend for very light/occasional sales, as magstripe technology doesn’t offer the security of modern chip and contactless transactions. On that count, Square offers its second-generation chip + contactless reader for $59 and its first-generation reader for $49. Shopify’s chip + contactless reader goes for $49, so there’s little difference there.
If you’re interested in a register-like setup, both companies provide receipt printers, cash drawers, barcode scanners, and more. These are available on an á la carte basis or as all-inclusive bundles. Square offers bundled register kits that include everything needed for a full register setup, ranging from $259 to $1,389. Shopify offers fewer register kits, but the three it currently offers sell for just $219 each.
For lightweight, portable terminals, Square and Shopify both have options. Square has its signature Square Terminal. This all-in-one device, which costs $299 (financing is available), combines POS software with a card reader, receipt printer, and a convenient front-facing touchscreen for your customers. Shopify has its own POS Go device, a handheld reader with EMV, NFC, and chip card reader, but no receipt printer. It sells for $399 (financing is available).
See our article on Shopify hardware and Square POS hardware for further details.
Which Is Best For My Business?
Both providers offer the tools needed for a brick-and-mortar shop and/or online store in this Square vs. Shopify showdown. The difference between the two can be boiled down to this: Shopify is generally stronger in eCommerce, while Square is typically better with in-person selling.
Further differences arise when you consider pricing, international sales, customer service, and industry-specific needs.
Only Square Offers…
- Specialized POS systems for restaurants, retailers, and businesses with appointment-scheduling needs
- A free eCommerce site (with a Square domain)
- No monthly fee for basic services
- Stronger POS software features
Only Shopify Offers…
- The ability to use either Shopify Payments (we have an article on how to set up Shopify Payments if you want to know more about it) or a different payment processor with your Shopify eCommerce site and/or POS
- The largest possible integration selection (over 2,000)
- More advanced eCommerce features
- Shopify Pay checkout buttons/accelerated checkout flow
- More advanced shipping tools
- Selling in 132 currencies (Square supports eight currencies)
- 24/7 phone support
We can’t declare a definitive victor in the Square vs Shopify debate. We recommend them both to merchants, as they have a lot of great features with generally fair pricing.
That said, Shopify does have a few more advantages than Square — cheaper POS processing, more extensive eCommerce features, multicurrency acceptance, and round-the-clock customer service, for starters. Also, those in the foodservice industry should check out our favorite restaurant POS apps.