Shopify vs. Square: Which Is Best for Your E-Commerce Business?

Shopify vs. Square Highlights

Who Is Shopify For?

Shopify is a solid option for e-commerce businesses of all sizes and businesses with both e-commerce and brick-and-mortar stores. 

If you’re an e-commerce business owner, you’re likely already familiar with the Shopify e-commerce platform – notable for helping business owners create an online store and customize its settings. Its drag-and-drop store builder makes setting up a professional website easy, with an insightful dashboard delivering detailed analytics about your business.

But 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 in person using Shopify Payments for payment processing. Our Shopify review explains the platform’s seamless checkout options and other features. 

The Shopify App Store provides over 8,000 apps that help with product design, SEO strategy, checkout and social selling. Source: Shopify

Who Is Square For?

Square is an excellent POS system for small businesses, restaurants and other retail stores. Square also supports online sales via Square Online, making it easy to add online ordering functionality to your website. This service automatically syncs orders and inventory with your POS system.

Square makes payment acceptance seamless and provides extensive customization options, allowing businesses to support numerous payment options, loyalty programs, gift cards, invoicing, online sales and more. Its POS hardware is sleek and attractive, making it ideal for mobile payment acceptance via chip cards and contactless payments like NFC mobile payments. 

We were impressed that Square’s POS software is free, which is incredibly helpful for startups and other businesses that would benefit from a free POS system. Our Square review details its POS software features and hardware options.

Shopify vs. Square Service Comparisons

Here’s a closer look at each vendor’s pricing, hardware, customer support and e-commerce features, and how they compare.

Plans and Pricing

Shopify

We like Shopify’s transparent pricing and terms, which make it easier for businesses to evaluate the platform’s POS functionality. 

Here’s an overview of its plans and pricing, including Shopify Payments processing fees. Every tier comes with a POS Lite software subscription with in-person selling features. You’ll pay an additional $60 monthly if you upgrade to a Shopify POS Pro subscription, which includes more robust in-person features like customer loyalty insights. 

Outside of its primary offerings, as noted above, Shopify has several more niche offerings, including the following: 

• Starter: $5 monthly. This plan is aimed at casual sellers who want to start taking secure in-person payments. 
• Retail: $89 monthly. This plan is for primarily in-store retailers, although a limited online store is included.   

Square

Square Point of Sale is a free-to-use app, with no monthly fees or startup costs. You can download the app and you won’t be charged anything until you accept a customer payment. (Hardware costs will be discussed in the next section.) Features include the following: 

• Multiple payment types accepted, including digital payments
• Gift cards supported
• Customized menus for restaurants
• Customer management tools
• Customized receipts
• Online ordering
• Social media integrations
• POS reports
• Customer insights

You’ll pay payment process rates as follows: 

• Card-present transactions: 2.6 percent plus $0.10
• Card-not-present transactions: 2.9 percent plus $0.30
• Manually keyed in: 3.5 percent plus $0.15

However, if you’re an e-commerce business, you may opt for Square Online and its more robust options for selling, taking orders and scheduling services online. Prices range from free to $79 monthly and include website-building tools, social selling features and personalized online ordering. Our Square review details more about this option and its processing costs.

The Square POS app for iOS (also available for Android) lets you accept contactless payments via your smartphone and the Square Reader. Source: Apple App Store

Winner

Square wins when it comes to pricing, and it’s the best option for new and growing businesses. You can download the app and get started for free, and you won’t pay anything unless you make a sale. Additionally, Square Online is an excellent option for more robust online sales. 

Hardware

Square

Square’s magstripe reader is free and can be used to accept credit card payments on a phone or tablet. 

Additional Square hardware offerings include the following: 

• Terminal: Square’s all-in-one payment terminal costs $299.
• Contactless and chip reader: This Square reader accepts chip cards and contactless payments and costs $49.
• Register: The POS register comes with two user-friendly displays, software options and built-in payments. It costs $799.
• Stand: With the Square stand, you can use your iPad as a POS system. The stand is $149.  

The Square Register is an all-in-one POS system with two user-friendly displays, intuitive software and built-in payments. Source: Square

Shopify

In addition to its free tap-to-pay iPhone functionality, Shopify offers the following POS hardware:

• Tap & Chip card reader: This $49 device connects wirelessly to mobile devices to accept chip and contactless payments. 
• POS Go: This compact all-in-one $299 device acts as a POS terminal.
• Countertop Kit: For $459, you get a POS terminal with a tablet stand, power adapter and POS Go dock. 

The Shopify POS Go enables efficient, user-friendly in-store transactions and facilitates effortless payment processing. Source: Shopify

Winner

The two companies are fairly evenly matched when it comes to hardware. Both Square and Shopify provide high-quality, affordable hardware. However, Square provides a free magstripe, which is ideal for startups. 

Customer Support

Shopify

Shopify provides 24/7 chat support on all service plans and offers online resources, including video tutorials and webinars, to help you get started. You can request a callback via the Help Center, but there’s no direct line for phone support. You also have access to the Shopify Community, where you can get your questions answered by other Shopify users. 

Square

Square provides 24/7 chat support and phone support Monday through Friday, 6 a.m. to 6 p.m. PT. If you’re a Square Online customer on the Premium plan, you get 24/7 phone support. Square also offers video tutorials and a seller community, where you can talk to other business owners.

Winner

Both companies provide excellent customer service. However, Shopify does not offer phone support; you can at least reach someone by phone during regular business hours with Square, so we’re giving Square the win here. 

E-commerce

Shopify

Shopify is an excellent option for e-commerce businesses that want to use its e-commerce features in addition to its POS functionality. The company provides:

• Excellent shopping cart software
• Easy setup for custom websites
• A custom domain
• Website hosting
• Order management
• Third-party integrations

Square

Square is also a multifaceted solution with payment processing, e-commerce and POS functionality. E-commerce businesses will appreciate the following features:

• Web hosting 
• Numerous e-commerce integrations
• Inventory and order tracking
• Inventory and order management
• Reporting dashboard with insights into your business

Winner

Shopify wins this category. It offers a broader spectrum of e-commerce features than you’ll get with Square. 

Shopify vs. Square Summary

• Shopify is ideal for e-commerce businesses and anyone who wants to set up an online store. The drag-and-drop web builder makes it easy for beginners, and the service works well for businesses of all sizes.
• Shopify is a good choice for businesses that want to try social selling along with in-store and online sales.
• Shopify will appeal to businesses that want an all-in-one solution to handle e-commerce functions, in-store sales, payment processing and POS functionality.
• Square is an excellent option for brick-and-mortar retailers that want a straightforward way to accept payments.
• Square can be a good fit for startups with a limited budget that want free POS software and businesses that rely on mobile payments.
• Square suits the needs of businesses that want industry-specific software for retailers, restaurants and appointment-based operations.