Square vs. Shopify: Which Is Right for Your Business in 2026?
Shopify excels in e-commerce, but Square can accommodate more industry types.
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Updated · 1 min read
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Managing Editor The major difference between Square and Shopify is their focus on in-person vs. online sales. Both POS systems accommodate both types of transactions. But Square is tailored to a variety of brick-and-mortar businesses. Shopify is built primarily for online retailers.
Square is better for:
✔️ In-person sales.
✔️ Free POS software.
✔️ Food service and solopreneurs.
Shopify is better for:
✔️ Cheap online processing.
✔️ Website building tools.
✔️ Quickly growing online retailers.
Square pros and cons at a glance
Pros
Free plan option available.
Offers helpful related services, like payroll, that integrate closely with its POS system.
Supports restaurants, retailers and service-based businesses.
Cons
Free plan processing rates are more expensive than competitors.
Complex industries might prefer a more specialized system.
Shopify pros and cons at a glance
Pros
Built specifically for online sellers.
24/7 chat support.
Has more than 1,000 website themes.
Cons
No free plan options.
Square vs. Shopify: Head-to-head comparison
| Square | Shopify |
|---|---|
| Monthly POS software costs | |
| $0 to $149 per month. | $39 to $399 per month. |
| Payment processing fees | |
|
|
| Hardware costs | |
|
|
| Customer service | |
| Chat and email support in all plans. Free plan includes phone support only for the first 90 days. Plus plan subscribers can access phone support weekdays 6 a.m. to 6 p.m. PT. Premium plan subscribers receive 24/7 phone support. | 24/7 chat support in all plans. Phone support available for Plus and Retail plan subscribers. |
More details on Square's plans and pricing
Monthly POS software costs:
- $0 for Square Free plan.
- $49 for Square Plus plan.
- $149 for Square Premium plans.
Payment processing fees:
- 2.6% plus 15 cents for in-person transactions with Free plan.
- 3.3% plus 30 cents for online transactions with Free plan.
- 2.5% plus 15 cents for in-person transactions with Plus plan.
- 2.4% plus 15 cents for in-person transaction with Premium plan.
- 2.9% plus 30 cents for online transactions with Plus and Premium plans.
- 3.5% plus 15 cents for manually keyed transactions.
Hardware costs:
- $0 for Square magstripe-only card reader ($10 for each additional reader) or if using Tap to Pay for iPhone (iPhone not included).
- $59 for Square Reader contactless and chip card reader.
- $149 for Square Stand iPad POS or Square Stand Mount (iPad not included; monthly financing available).
- $149 for Square Kiosk for self-serve ordering.
- $299 for Square Terminal mobile card reader with built-in printer (monthly financing available).
- $399 for Square Handheld portable POS system with built-in barcode scanner (monthly financing available).
- $799-$899 for Square Register two-screen system (monthly financing available).
- $1,189 and up for Square Register hardware kit with cash drawer and printer.
More details on Shopify's plans and pricing
Monthly POS software costs:
Shopify e-commerce plans:
- $29 for Shopify Basic when billed annually (or $39 when paid monthly).
- $79 for regular Shopify when billed annually (or $105 when paid monthly).
- $299 for Shopify Advanced when billed annually (or $399 when paid monthly).
- $2,300 per month and up for Shopify Plus.
- All e-commerce plans come with POS Lite for selling in-person. Upgrading to POS Pro for brick-and-mortar businesses costs an extra $89 per location.
Shopify’s alternative solutions for mainly selling in-person:
- $5 for Starter plan, which includes one POS Lite location.
- $79 (when billed annually) for Retail plan, or $89 when paid monthly; includes one POS Pro location.
Payment processing fees:
- 2.5%, 2.7% or 2.9% plus 30 cents for online payments for Advanced, Shopify or Basic plan, respectively.
- 2.4%, 2.5% or 2.6% plus 10 cents for in-person payments for Advanced, Shopify or Basic plan, respectively.
Hardware costs:
- $49 for Tap & Chip card reader.
- $219 for Tap & Chip countertop kit (iPad not included).
- $349 for Shopify POS terminal.
- $459 and up for POS terminal countertop kits.
Where Square stands out
FEATURED
Free POS plan
Unlike Shopify, Square offers a free POS software plan. Its rates aren't as competitive as we'd like them to be. But it still has some valuable features you'd otherwise pay for with Shopify. For example, Square's free plan lets you create an online site and build a catalog of items. It also includes low-stock alerts and customer data collection.
Supports a variety of industries
Square is versatile enough to accommodate a wide range of business types. It has features for businesses in food and beverage, retail and personal and professional services. Some industry-specific tools include appointment booking, menu management, inventory tracking and tip pooling.
Shopify, on the other hand, is mostly geared toward retailers. Its feature set doesn't make sense for businesses in other industries.
» MORE: Best retail POS systems
Where Shopify stands out
FEATURED
Cheaper processing rates
Shopify has competitive in-person and online processing rates at every plan level. For example, its least expensive Basic plan charges 2.9% plus 30 cents per online purchase and 2.6% plus 10 cents per in-person one. Square's free plan, in comparison, charges 3.3% plus 30 cents per online transaction and 2.6% plus 15 cents per in-person one.
Both companies decrease credit card processing fees as you upgrade plans. But Shopify still comes out on top with online rates as low as 2.5% plus 30 cents. Square's online rates don't drop below 2.9% plus 30 cents.
More website templates
Shopify lets you choose from more than 1,000 website themes. Granted, only a couple dozen of them are free with your plan. The others cost extra — usually in the form of a one-time fee of $100 or more. But if you plan to use the website for years to come, the cost could be worth it.
Is Square or Shopify right for your business?
If you don't run an online retail business, Square is often the more versatile option. It blends online selling tools with other features, like staff management, that are also suited to brick-and-mortar businesses.
Businesses focusing on e-commerce sales will get the most out of Shopify. It gives them greater control over their online presence and keeps online rates low.
Square and Shopify alternatives
Payment processing fees 2.3% + 10¢ or 2.6% + 10¢in-person; 3.5% + 10¢ online. | Payment processing fees 2.7% + 5¢in-person; 2.9% + 30¢ online. |
Monthly fee $0and up. | Monthly fee $0 |
Clover: Ideal for industry-specific plans. Similar to Square, Clover has industry-specific plans for businesses in a range of industries. These include quick-service and full-service restaurants, retail, and personal and professional services. Read our full Clover review.
Stripe: Lots of online checkout tools. Stripe lets you customize the online checkout experience as much or as little as you'd like. Its online rates are also competitive at 2.9% plus 30 cents per transaction. Read our full Stripe review.
Lightspeed Retail: Strong inventory management. Lightspeed Retail can be a good alternative for retailers managing multiple brick-and-mortar locations. It's more expensive than Square, but it also has more inventory features. Read our full Lightspeed Retail review.
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Methodology
NerdWallet independently reviews point-of-sale (POS) system providers before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives. Our editorial team reviews information on a regular basis for consistency and accuracy.
We also periodically update our scoring system to reflect changing industry norms and business needs. For instance, in 2026, we added a payroll integration category to our POS systems rubric. It’s important that POS systems can sync up with payroll software to minimize manual data entry and keep track of employee hours.
NerdWallet’s POS system provider ratings reward companies whose products and services are priced well and work in a variety of payment scenarios, among other criteria.
Ratings are based on weighted averages of scores in several categories, including cost, system capabilities, contract requirements, customer service and integrations and add-ons. Learn more about how we rate POS system providers.
These ratings are a guide, but services, hardware and pricing can vary widely from business to business and provider to provider. We encourage you to shop around and compare several providers.
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