Square vs. Shopify: Differences, pros and cons in 2024

Square and Shopify are both leading all-in-one business platforms with powerful features. Both companies offer online stores, payment processing and point-of-sale (POS) solutions for both brick-and-mortar and e-commerce businesses. Either provider will get your business up and running without much hassle, though each has areas where it is particularly strong.

We’ve carefully examined both providers for their payment systems, hardware, software and customer support services to help you pick a provider that will streamline your operations and best support your sales. 

Square and Shopify are both very well-known presences in the e-commerce space, and each features its own range of offerings. 

Andy Chang, founder and CEO of The Credit Review, explained that “both these platforms have their unique strengths and setbacks.” He noted that Square is “excellent for small businesses due to its ease of setup, bundled services and no monthly fee,” and highlighted that “Shopify, on the other hand, excels for online businesses thanks to its seamless integration with the Shopify store.”

As you research providers and make a decision, begin by first assessing your budget and then considering additional features.

Pricing and fees

Verdict: Square

With its free plan and inclusion of its free magstripe card reader, you can begin selling for only the cost of the transaction fees. For casual sellers and those who sell at events and markets, Shopify just can’t match this offering. 

However, as business needs increase and you require a paid plan, the two providers get more neck-and-neck and you will need to assess pricing based on your specific needs.

Shopify’s plans are, on the whole, more expensive than Square’s, but its higher-tier plans do have lower transaction fees, and its hardware is generally cheaper. There are also the added benefits of Shopify’s powerful web design tools to consider. 

Square pricing and fees

Square offers three plan options:

• Free: For $0 plus processing fees, users can sell online, over the phone or in a physical location.
• Plus: For appointment-based businesses, restaurants and retail, Square’s Plus plan will cost $29, $60 and $89 respectively, all per month in addition to processing fees. Each of these plans has features tailored specifically for its industry.
• Premium: Larger businesses or those looking to get customized plans and processing rates can contact Square’s sales team directly to discuss options.

Square’s payment processing fees start at:

• In-person: 2.6% plus $0.10.
• Online: 2.9% plus $0.30.
• Manual or keyed: 3.5% plus $0.15.
• Invoices: 3.3% plus $0.30.

Square’s Retail Plus and Restaurant Plus plans come with some basic hardware options, but a wide range of additional hardware is also available for purchase. All plans come with Square’s free basic magstripe reader. Additional contactless card readers start at $49. Full register kits start at $1,269.

Shopify pricing and fees

Like Square, Shopify offers three core plan tiers, though it does not offer a free option:

• Basic: Recommended for solopreneurs and very small businesses, the Basic plan is $39 per month and starts with a fully customizable online store where you can sell unlimited products. Payment processing rates are highest with this plan, at 2.9% plus $0.30 for online transactions and 2.6% plus $0.10 for in-person transactions.
• Shopify: Recommended for small businesses and teams, the $105 per month Shopify plan adds features like shipping insurance, up to five staff accounts and lower payment processing rates that run 2.7% plus $0.30 for online transactions and 2.5% plus $0.10 for in person transactions.
• Advanced: For large and scaling businesses, the $399 per month Advanced plan offers up to 15 staff accounts, enhanced 24/7 chat support, third-party calculated shipping rates and Shopify’s lowest payment processing rates at 2.5% plus $0.30 for online transactions and 2.4% plus $0.10 for in person transactions.

Shopify also offers a few other plan types that may be a good fit for specific uses, including its Starter plan for $5 per month, which allows for the creation of a simple online store and selling on social media. 

A retail-specific plan is also available for $89 per month (identical to Square’s Retail Plus pricing) and adds in-person selling tools alongside inventory tracking, loyalty features and staff management capabilities.

Shopify’s hardware options include card readers, terminals, cash drawers, printers and scanners. Costs will range from $49 for Shopify’s Tap & Chip Card Reader to $459 for its POS countertop kits and $999 for wireless countertop bundles.

Read our full guide to Shopify pricing for in-depth cost information.

Hardware features 

Verdict: Square

Square and Shopify both offer a good selection of hardware that integrates with each provider’s POS software. But Square just edges out Shopify with its inclusion of its free magstripe card reader with even its free plan and its sleek all-in-one register, which combines a register screen for the seller and a customer display that accepts all major credit and debit cards as well as Cash App payments.

Square hardware features

Every Square plan, even its free one, includes the Square reader for Magstripe, which plugs directly into your phone and allows sellers to take swiped card payments. For those who sell on the go at events like farmer’s markets or craft fairs, this may be all the equipment you require, and — paired with the free plan — you’ll only pay transaction fees.

If you want the ability to accept contactless payments, you can upgrade to the 1st or 2nd generation Square Readers, for $49 or $59, respectively. For those wanting a payment terminal with a bit more heft, you can consider the Square Terminal for $299, which also prints receipts.

We like the aesthetic and functionality of the Square Register, the company’s fully integrated register that comes with a touchscreen for the seller and a payment terminal for customers who can view their purchase and pay by tap or card. At $799, it isn’t the cheapest register you will find, but its compact nature and integration with every other feature of your Square plan certainly make it an appealing option.

The Square Register Kit is Square’s priciest hardware offering. At $1,269, this equipment combo comes with the Square Register, cash drawer and receipt printer.

Shopify hardware features

Shopify has some similar offerings to Square, though it lacks an all-in-one register option. Instead, POS Terminal Countertop Kits are available for both iPads and Android tablets for $459. These kits include a POS terminal for taking card payments and a tablet stand, but you must supply your own tablet.

For those who may not want or require full register set ups, a few card reader options are available. Like Square’s contactless card reader, Shopify’s Tap & Chip Card Reader is $49. The POS Go for $299 is a handheld card reader that features a touchscreen and can also act as a barcode scanner. The Shopify POS Terminal for $349 is a countertop option that has a full display for the customer.

Shopify also sells a wide range of ancillary equipment like tablet stands, barcode scanners, barcode label printers and labels, receipt printers and paper and cash drawers.

Software features

Verdict: Shopify

While both providers offer excellent POS integration, payment processing and make online and in-person sales simple, we think that for online retailers especially, Shopify’s web editor and other site-building tools and features just can’t be beat. 

Square software features

Square’s software encompasses payment processing, POS, e-commerce sites, APIs and app integrations with some of the most popular business software such as QuickBooks, Wix and WooCommerce.

Square accepts and processes payments from U.S.-issued and most internationally issued magstripe or chip cards from Visa, American Express, Discover, Mastercard, JCB or UnionPay International. It supports payments from mobile wallets including Apple Pay, Samsung Pay and Google Pay. It accepts prepaid cards, certain international cards and Afterpay. Licensed healthcare providers and pharmacies can accept HSA and FSA cards. 

Square does offer the tools needed to set up a simple online shop, but the company’s bread and butter is its POS system. This software allows you to sell online, in person, over the phone or while you’re out and about. You can take payments with its hardware or with its online integrations for your website, track inventory, manage teams in multiple locations and process invoices. 

Shopify software features

Shopify users can also accept a wide range of payment types, but this must be done through Shopify Payments. U.S.-based businesses can accept Visa, American Express, Discover, Mastercard, Diners Club debit and credit cards, Apple Pay, Google Pay, Shop Pay, Bancontact and iDEAL payments. 

Shopify has its own omnichannel POS offering for selling online or in person, as well as a nice range of card reader and hardware options, though you will need to provide your own tablets if you want a register setup. Its POS software has features for inventory tracking, staff management, customer management, reporting and analytics. 

Where Shopify really shines is with its web editor and website-building tools. Starting with a range of customizable themes and over 8,000 app integrations, the no-code website builder can quickly have you up and running on the web. 

Unlimited product listings, SEO tools, stock photos, a QR code generator and smooth integration between online and offline store sales make Shopify’s powerful e-commerce tools worth considering, especially for those focused on online sales.

Customer service

Verdict: Tie

Our preference among these two providers in terms of customer service and support really comes down to which type of support channel users prefer to engage with. Shopify offers its customers 24/7 chat support but no phone support. Square offers its customers phone and chat support, but only during weekday business hours (unless you have the Premium plan).

Square customer service

Square offers both phone and live chat support, but it is only available Monday through Friday 6 a.m to 6 p.m. PT unless you’re a Premium plan customer. There is a callback option if you do not want to wait to speak to a representative during busy times. 

While phone support is something Shopify lacks, the limited hours may be difficult if your business operates outside standard hours and you are in need of assistance. 

Square has an online Support Center as well that’s full of helpful articles and resources surrounding a vast range of topics from payments and hardware to taxes.

Shopify customer service

Shopify offers all plan subscribers 24/7 chat support, and “enhanced” chat support for its Advanced subscribers. If you primarily sell online and anticipate that you may need assistance during weekends or late at night, this 24/7 chat support is likely preferable. However, if you prefer phone support, Shopify will leave you wanting. 

Shopify also has a nicely built-out Help Center for its users with articles and resources on topics ranging from how to access your account to everything you need to know about accepting payments.

Final verdict

Winner: Tie 

Our final recommendation comes down to the type of retailer you are. Chang emphasized that when it comes to these two e-commerce providers, “Experiences can vary and businesses need to consider their unique requirements in terms of transaction volume, online versus physical store sales and the necessity of bundled services when deciding between the two.”

If you operate in a physical location— especially in a restaurant or retail scenario — Square’s powerful POS features will serve you well. If you primarily operate online, however, and want a website with all the bells and whistles, Shopify’s features are likely going to be a better fit.

Who is Square best for?

We ultimately recommend Square for brick-and-mortar operations, especially restaurants and retailers who rely heavily on their hardware. You can absolutely use Square to sell online as well, but its highly customizable POS software adapts well to service industries and businesses with multiple locations.

Who is Shopify best for?

For those focused primarily or solely on e-commerce, Shopify is the better option. Its suite of tools and features for designing a beautiful and functional online store is impressive, and while its physical POS offerings are very serviceable, its greatest value will be in online sales.

Frequently asked questions (FAQs)

Is Square cheaper than Shopify?

Yes, Square subscriptions are cheaper than Shopify. It offers a free plan and its higher-tier Plus plan starts at $29 per month in contrast to Shopify Advanced’s $399 price tag. However, customers may find that Square’s POS hardware is pricier than Shopify’s. 

Is Shopify or Square better for a website?

For a website, Shopify is better. While you can create an online shop with Square, Shopify offers a vast range of themes and app integrations as well as a powerful and fully customizable web editor.

Is Shopify cheaper than Square?

No. Shopify’s plans are generally more expensive than Square’s. Its lowest-tier plan starts at $39 per month whereas Square starts with a free offering and then rises to start at $29 per month for the first paid tier.

However, while Shopify’s plan subscriptions are more expensive, it’s also important to assess other costs, including transaction fees, hardware costs, integrated app subscriptions and web hosting fees.