Which one is best for your business in 2025?

Businesses selling in-store and online need a reliable multi-channel POS system and a good online website builder that integrates seamlessly. Square and Shopify are two of the best options for small businesses, entrepreneurs, and online sellers looking for a reliable platform for their e-commerce and POS needs.

I compared Square and Shopify, looking at their key differences and how they serve different business needs.

Square vs. Shopify: Key Differences

• flat rate
• Square payment only

• Depends on payment processor and Shopify plan
• Shopify Payments for POS; also compatible with third-party processors

A basic website builder with limited customization included in the free plan

A simple online store is included in the lowest plan

• Free magnetic stripe reader
• Paid devices start at $49
• Tap to pay on iPhone and Android

• No free equipment
• Price starts at $49
• Click to pay on iPhone

• Phone support Monday to Friday
• 24/7 automated chat support
• Seller community
• Resource library

• 24/7 phone support
• community forum
• Resource library

Square vs. Shopify: Detailed Comparison

Starting at 2.6% + 10 cents

Starting at 2.4% + 30 cents

• Free magnetic stripe reader
• Paid devices start at $49
• Standalone terminal costs $299, $37 after 12 months
• Tap to pay on iPhone and Android

• No free equipment
• Price starts at $49
• Standalone terminal costs $299
• Click to pay on iPhone

Shopify Payments or third-party payment processor

• No refund fees
• Industry specific POS
• Online ordering and online booking websites

• 8,000+ integrations
• Cryptocurrency payments
• Highly customizable online store

• Phone support Monday to Friday
• 24/7 automated chat support
• Seller community
• Resource library

• 24/7 phone support
• community forum
• Resource library

Square vs. Shopify Pricing

The main difference in pricing between Square and Shopify POS is that Square offers a free plan, while Shopify does not. Shopify’s lowest plan requires a monthly fee, unlike Square’s basic free plan, which allows you to launch an online store and start accepting payments immediately.

Both Shopify and Square offer discounted processing fees to high-volume sellers, and contracts are on a monthly basis. For payment processing, their transaction fees are very similar, but there are some slight differences between the plans. Payment processing fees for Shopify’s basic plan match Square’s free plan. Both plans cost the same for online and onsite processing, but Square costs $0 per month, while Shopify Basic is cheaper at $39 per month.

Unlike Square, which uses Square Payments as its payment processor, Shopify allows the use of third-party payment processors instead of its built-in processor Shopify Payments. However, using a third-party payment processor will incur additional transaction fees of 0.6% to 5%, depending on the plan.

Square vs. Shopify Hardware

Square is also slightly ahead of Shopify in terms of POS hardware devices. Square has a free magnetic stripe reader and accepts tap-to-pay on Android and iPhone. Businesses can start accepting payments immediately without paying any POS equipment fees.

Although Shopify doesn’t offer free devices, it does accept Tap to Pay for iPhones. With a compatible iPhone device, Shopify users can immediately start accepting payments using their iPhone as a card reader.

Read more: Best Business POS Hardware

Square and Shopify features

When comparing the features of Shopify and Square, both platforms offer easy-to-use solutions for online store functionality. Shopify shines with its full-featured online store features, available from the Basic plan and above, making it easy for businesses to build a professional and customizable online presence.

In comparison, Square Online is free but has limited functionality and requires upgrading to the Plus plan to get full online store functionality. This may be limiting for businesses on lower-level plans, but can be useful for startups just getting a foothold in their online business. Additionally, Shopify offers the flexibility to use custom domains on all plans, giving businesses greater branding opportunities than Square’s restrictions on higher-level plans.

When it comes to shipping features and tax calculations, Shopify becomes the better choice. Shopify offers great shipping features and automatic location-based tax calculations to speed up the process. Conversely, Square’s shipping features are decent, but its manual tax calculation can pose challenges for businesses dealing with multiple tax jurisdictions. Additionally, Shopify offers higher shipping discounts.

Additionally, Shopify has extensive inventory management tools that businesses can use to effectively track and manage inventory levels across all plans, whereas Square’s inventory management is only available on its Plus plan and above. Overall, while both platforms offer valuable features for businesses, those who sell primarily online will find Shopify to be a more comprehensive and versatile solution.

Square vs. Shopify customer support and user reviews

Both Shopify and Square offer excellent support resources and receive positive feedback from users. Square offers phone support Monday through Friday and offers a 24/7 automated chat support system. In addition, Square has a seller community and resource library that provides users with the opportunity to connect with peers and access helpful resources to optimize their experience.

For those who want live help at any time, Shopify offers 24/7 phone support, community forums, and a resource library, giving users multiple channels to seek help and interact with the platform community.

In user reviews on platforms such as Capterra, G2, and SoftwareAdvice, both Shopify and Square receive high ratings, reflecting their overall satisfaction among users. While Square’s ratings on these platforms consistently hover around 4.6 out of 5, Shopify also maintains strong ratings, typically between 4.4 and 4.6 out of 5.

These positive reviews highlight the effectiveness of both platforms in meeting user needs and delivering value through their respective features, customer support and overall user experience.

Ultimately, businesses considering Shopify or Square can feel confident in their choice, knowing that both platforms receive positive feedback and offer reliable support resources to help users through their e-commerce journey.

Shopify vs. Square: Which is right for your business?

For in-store businesses: Square

When choosing Shopify and Square for your business, consider your primary sales channels and how much emphasis you place on e-commerce. Square is an excellent choice for businesses that operate primarily in-store and need a simple online store as an additional sales channel. With its user-friendly interface and simple pricing, Square offers seamless payment processing solutions that meet the needs of brick-and-mortar institutions.

For businesses focused on e-commerce sales: Shopify

Shopify, on the other hand, is a top choice for businesses that prioritize e-commerce sales and may also need in-store payment processing capabilities. Its powerful e-commerce tools, extensive app marketplace, and advanced features make Shopify an ideal platform for businesses looking to effectively build and grow their online presence.

Whether you’re a retail store looking to expand online, or an e-commerce-focused business looking for a comprehensive solution, choosing between Shopify and Square ultimately comes down to your specific business needs and sales strategy.

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