With online sales on the rise, fast, easy, and secure transaction tools are needed to support many types of businesses. Square and Shopify are popular in the industry for providing payment processing, in-person and online sales, and point-of-sale (POS) software. Square and Shopify support multichannel sales but have different transaction fees and plans.
This article will compare the similarities and differences between Square and Shopify to help you decide. Read on to find out which is right for you.
What Makes Square Unique in Payment Processing?
Square has a simple business solution through its flexible POS options. It has a full-featured POS software and a Lite version to fit different business needs. Affordable, fast to set up, and easy to use on both versions, you can process almost any payment on the platform, and let your customers pay their way- whether by card, phone, or electronic payment solutions.
With Square’s powerful POS functions, payment processing has become simple yet powerful. Best of all, these premium capabilities come standard- no fees attached- ensuring your business never misses a beat.
What Makes Shopify Stand Out in E-commerce?
Shopify, as an eCommerce platform, ties all your business together across all sales channels. As a full solution, it allows you to handle inventory, fulfill orders, and deal with customer information from diverse locations in one place. One of the best things about Shopify is the Shopify app store which has over 8,000 apps to help with all aspects of online retail. You’ll be able to easily:
- Control inventory across all channels
- Simplify shipping process
- Manage multiple locations from one dashboard
- Drive down operating costs
- Omnichannel selling online
- Integrated payment system
This all-in-one approach helps entrepreneurs scale their business while keeping costs low.
You can get the online store service with any plan. Start with basic and upgrade as you need more advanced tools.
Square vs Shopify: Pricing Plans
When it comes to monthly costs, Shopify starts at $39 per month, while Square keeps things simple with no monthly fees. Both platforms charge 2.9% plus 30 cents for each online transaction, though Shopify’s rates can be lower depending on your plan.
Need to process returns? Both platforms handle refunds without extra charges when using the original payment method. However, keep in mind that neither will refund your initial transaction fees.
Dealing with chargebacks? Shopify charges $15 per dispute but will refund this if you win your case. Square’s chargeback fee is slightly lower at $10, and you can avoid these fees entirely with Square’s Chargeback Protection service.
For hardware, each solution empowers you with wide-ranging POS equipment options. The cost will depend on what your business needs – from basic card readers to complete POS systems.
Square vs Shopify: E-commerce Features
| Features | Shopify | Square |
| Online store builder | √ (fully customizable, many themes) | √ (with customizable templates) |
| Inventory management | √ (advanced features like bulk import) | √ (integrated, basic features) |
| Shipping management | √ (advanced integrations and calculations) | √ (basic tools, but no advanced features) |
| Order management | √ (advanced filtering, tagging, etc.) | √ (basic tools) |
| Payment processing | √ (via Shopify Payments, 3rd party) | √ (integrated POS and online) |
| Dropshipping | √ (via Shopify apps like Droshipman, and DSers) | × (not supported) |
Shopify stands out with its comprehensive multi-channel approach. Its robust platform supports businesses of all sizes, creating a “store in your palm” through the mobile app. You can enjoy an effortless and accessible e-commerce business anytime, anywhere with advanced warehousing and stock management. Of course, brands can tell their brand journey to customers with Shopify’s flexible customization solution and powerful designs.
Square, on the other hand, is all about payment processing and physical store transactions. Integral to what it does is a point-of-sale system that turns your brick-and-mortar into a retail powerhouse. You can turn every dollar into a measurable value with its transparent payment processing – no hidden fees or complex pricing tiers.
If you want to scale across multiple channels, Shopify has more growth potential especially if you have high volume eCommerce needs. But if you want to combine in-person sales with a simple online presence, Square’s low cost no monthly fee, and robust POS system is perfect for small to medium-sized businesses.
Square vs Shopify: POS & Hardware
With a reliable point of sale (POS) system, you can process sales and manage transactions accurately and efficiently at the point of purchase, whether on an online checkout page or a physical counter.
Below is an in-depth comparison of Square POS vs Shopify POS to determine the best POS for small businesses.
Square POS & Hardware
Square POS software is free when you sign up for an account and only charges your business when you start making transactions. The software lets you accept payments, customize customer checkouts, access add-ons, manage and track sales and inventory, and provide excellent customer service.
When a customer pays with a card in person, Square will charge you 2.6% + 10 cents per transaction. Online transactions will cost your business 2.9% + 30 cents each, while manually keyed-in ones will set you back 3.5% + 15 cents.
Square’s hardware offerings suit different businesses, including retail stores and restaurants.
POS hardware catalog
- Square Reader for Magstripe: This tiny reader plugs into your phone or tablet. It lets you accept and process swipe card payments using the Square App. The first reader is free when you sign up for an account, but additional readers cost $10 a piece.
- Square Stand: The Square Stand costs $149 and lets you turn your iPad into a professional POS with intuitive checkout and built-in payment processing capabilities. No card readers are necessary when using the Square Stand. However, connecting it to the contactless chip reader lets you accept all types of credit cards and scan QR codes with the Square Cash App.
- Square Kiosk: This hardware offering consists of an iPad POS only. It also costs $149 and is a versatile option that lets you accept payments conveniently.
- Square Terminal: This handheld terminal is designed to feature an in-built printer for printing receipts. It accepts all credit cards and digital wallets. The Square Terminal can be connected to a tablet for a second screen. It is available for $299.
- Square Reader for Contactless and Chip: This hardware costs $59 and pairs with your device via Bluetooth to take chip cards, contactless payments, and digital wallets. If you have the Square POS App on your iPhone, customers can hold their cards or wallets next to your phone to pay.
- Square Register: Go for the $799 Square Register for a fully integrated register. With it, you can accept all payment types and scan QR codes with the Cash App. The hardware features two screens, allowing you to have a customer-facing display.
Shopify POS & Hardware
When merchants subscribe to a Shopify paid plan, they get access to Shopify POS, which helps them sell online and in person. The Shopify POS App automatically syncs with the online store to help sellers track orders and inventory from all sales points.
The Shopify POS Terminal is recommended for brick-and-mortar businesses, allowing them to offer buyers a customer-facing display and accept various payment methods.
The primary payment gateway for Shopify POS is Shopify Payments, which does not charge sellers to process payments. However, credit card payments are charged 2.9%, 2.7%, and 2.5% if you are on the Basic, Shopify, or Advanced plan.
Sellers who opt for third-party payment gateways will incur the standard 2.9% processing fee charged by the payment providers plus an additional 2%, 1%, or 0.6% for credit cards processed on the Basic, Shopify, and Advanced plans, respectively.
Shopify also allows merchants to link their physical stores to the Shopify POS app through POS hardware.
Shopify card readers available to sellers
- Shopify Tap & Chip Reader: This device allows sellers to accept chip and contactless payments. It is lightweight, portable, and connects wirelessly to tablets and mobile phones or through wired connectivity with some Android devices. This card reader is available for $49. Business owners can also buy a Shopify Dock for an additional $40.
- Shopify POS Terminal: The Shopify POS Terminal, which combines the Shopify POS Go and Dock, is recommended for businesses with in-store checkouts. This device allows brick-and-mortar stores to offer buyers a customer-facing display and accept tap, chip, and swipe payments. It costs $349, but merchants can also pay flexibly in four bi-weekly installments of $87.25 with Shop Pay.
Based on the Square vs. Shopify hardware comparison above, Square is the more affordable option. Upon signup, merchants get a free card reader and can order additional ones for just $10 apiece. On the other hand, Shopify’s card readers start at $49. Square has a wider variety of POS devices, but Shopify offers more accessories and hardware.
Square vs Shopify: Payment Processing Options
As well-known e-commerce platforms, Square Shopify and both offer customers payment processing options for credit and debit cards, as well as popular widely-used mobile wallets such as Google Pay, and Apple Pay, this means that users can choose the most convenient payment method according to their situation, without any restrictions, to ease their operational pressure.
Shopify has a wider range of payment options than other platforms, giving customers the widest range of payment options while Square focuses on making payment processing easier and simpler. If the merchants are in high demand for payment, they can choose Shopify cuz more people feel assured of Shopify. They also provide refund and cancellation functionality and refund protection.
They both offer the ability to process installments. Specific options vary depending on your payment service providers and subscription pricing plan.
Square vs Shopify: Website Builder
In the Shopify vs Square comparison, both platforms have beginner-friendly drag-and-drop website builders that let users edit templates to design the perfect e-commerce website for their businesses.
Although Square’s template library is limited, it is sufficient for start-up businesses who seek to build a minimalistic site with basic features. This makes Square more suited to restaurants, physical retail stores, and service-based businesses that wish to establish an online presence.
On the other hand, Shopify’s customization options, including its vast template library and robust app store, turn it into a better option for online retailers exploring to expand their businesses. Moreover, it is suited to multi-national brands looking to unify their multiple inventory locations and points of sale on one platform.
Square vs Shopify: Add-Ons & Integrations
Shopify boasts over 6,000 apps in its marketplace. Need social media? Facebook, Instagram, and X are ready to go. Want email marketing power? Klaviyo and Omnisend have you covered. What truly sets Shopify apart is its thorough ecosystem that builds smoothly with multiple payment solution providers, POS systems, and accounting software, while offering developers the freedom to create custom solutions through its powerful API infrastructure.
Square takes a different path. Their marketplace has 100+ integrations. Simple but effective. Social selling? Check. Email tools? Built right in. Their payment gateway and POS system work as one. No complications. Square’s unified approach makes daily operations smoother.
Square vs Shopify: Inventory Management
Shopify has an inventory management system for merchants to manage inventory in multiple locations, checking stock availability throughout all your warehouses and store locations. Your online product listing is always up to date due to the automated stock updates. Shopify also has bulk stock management features to modify rates, descriptions, and more.
For businesses that need more advanced inventory insights, Shopify has data insights to show you stock movements, best-selling products, and forecasting. Shopify integrates with many third-party inventory management apps so you can customize your workflows.
In comparison, Square takes a more simple approach to inventory control. Not as feature-rich as Shopify but still has the core features of real-time tracking, inventory restock notifications and basic reporting. Square’s inventory system also integrates with its point of sale (POS) platform to make a unified sales and inventory management experience.
The decision to choose Shopify or Square depends on your business size and complexity. Shopify’s feature-rich system may be better for merchants with complex inventory challenges, whereas Square’s simpler system may be more suitable for growing enterprises with less complex inventory needs.
Square vs Shopify: Loyalty Program
Customer retention is crucial for any business as it helps to keep acquisition costs low. Square and Shopify include tools that enable merchants to create loyalty programs targeting their customers.
Square’s customer loyalty tools allow you to create, run, and track loyalty promotions to reward return customers and encourage sales during specific times of the year. You can create these promotions within the user seller dashboard, set custom rules, and launch them. This Square loyalty program workflow allows you to automate the promotion and only return to monitor results.
Shopify loyalty programs can be better customized to your customer needs by integrating with third-party apps like Loloyal. These apps feature more advanced settings and capabilities that let Shopify sellers personalize loyalty programs based on customer behavior. That way, you can improve customer satisfaction and boost retention rates.
Compared head-to-head, Shopify enables users to create the best loyalty programs for small businesses thanks to its integration with dedicated customer loyalty apps.
Grow your sales with Loyalty
Program & Rewards
that works
Square vs Shopify: SEO Tools
Shopify has more powerful SEO tools, which means more features and options to get more traffic and rankings for online stores. For example, Shopify has a built-in blogging feature which can get online stores more exposure on search engines. Plus Shopify has email marketing tools, social media integration, advertising, and promotional tools to get and retain customers.
On the other hand, Square’s SEO and marketing tools are more basic. They can get online stores customers but their features may not be as comprehensive as Shopify. But Square allows you to add apps and plug-ins to get more functionality to customize your online store according to your needs.
Shopify’s reporting tools are more advanced. Through these reporting tools, you can learn your customer behavior, sales data, and online store performance to optimize your online store and increase sales and customer satisfaction. So if you’re a data-obsessed and refined marketer, Shopify might be for you.
Square vs Shopify: Which is Right for Your Business?
Shopify is great for e-commerce businesses that need professional services and for entrepreneurs who want to get an online store up and running. No matter the size of your business you can get started and have a free trial. You can decide if you qualify based on the trial results.
To give customers the best service the platform has 24/7 chat support and an online help center so customers can get help as fast as possible. Even if you don’t have or want a Shopify store the platform’s POS hardware and software can help you accept payments online and use Shopify Payments for payment processing. So Shopify is the best for all types of businesses.
For businesses with a limited budget and need free POS software Square is the most affordable option. You can use the free plans and free trials and decide after trying it out. Square allows for seamless payment acceptance and gives customers many customization options. You can choose the payment method based on what the customer is buying.
What’s Next?
All in all, in this article, you can learn about the differences and similarities between the two platforms Square and Shopify. Through comparison in all aspects, you can make the final choice for your online store based on the current development stage.
If you want to increase your revenue through multiple channels, you can learn more about the Channelwill platform, which not only increases sales through organic traffic but also through Google, Instagram, Facebook, etc. For more information, please check out other articles on this website to provide more references for your final choice.
Square vs Shopify FAQs
Note: This blog was originally written in English and translated using an automated tool to make the content accessible to a global audience. We believe in sharing valuable insights with everyone and apologize for any inaccuracies. If you spot any errors, please feel free to contact us for corrections. Your feedback helps us improve and ensures the content’s value is fully realized.
Abby Zeng
Content Specialist
I’m deeply passionate about SEO and creating engaging content. My initial goal is to deliver high-quality, informative, and entertaining content that stands out in the digital landscape. By merging analytical insights with creativity, I aim to boost traffic for websites.
