Square vs Shopify – Which is Best for Business in 2024

While Square offers an appealing alternative with its modern interface and cost-effective solutions, a lingering question remains: can it truly compete with the big eCommerce player that is Shopify? This in-depth analysis will explore the strengths and weaknesses of both platforms.

To answer the question, we will consider the following points:

• Quick overview of the two platforms
• Detailed comparison of pricing, features, help & support, etc.
• Which works best for your business

Wait no further; let’s get the ball rolling! 

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Shopify vs Square – An Overview

Powering more than 5 million stores across over 170 countries, Shopify is undoubtedly one of the largest eCommerce platforms (source: BuiltWith). With all the top-notch features provided, this all-in-one eCommerce solution can help businesses of all sizes to quickly set up an online store and start selling in no time.

What about Square?

Being the top payment provider, Square has everything needed to conquer the world of eCommerce after purchasing Weebly in 2018. Not long afterward, this payment provider introduced Square Online Store, a cloud-based website builder solution for small businesses. Up to now, more than 290,000 online merchants have been using Square Online services (source: BuiltWith). 

Despite being quite similar to Weebly, Square Online has some cool new features and a free eCommerce plan. Moreover, this solution can seamlessly sync with Square POS (Point-of-Sale) data, which automatically updates inventory among your stores.

If you don't have time for the following walls of text, here's a brief of Shopify vs Square comparison.

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Pricing and Fees

Shopify pricing

Shopify provides a 3-day free trial for any user to explore the platform. No cost is required, and you can test its amazing features before making a purchase. If the trial fulfills your expectations, it’s time to pick a Shopify plan that suits your needs.

Currently, the platforms offer three main pricing tiers: Basic Shopify, Shopify, and Advanced Shopify. The subscription cost ranges from $39 to $399 per month, or you can pay on an annual plan and save 25%! 

In addition to these pricing tiers, Shopify offers Shopify Starter and Shopify Plus for specific business needs. At $5/month, Shopify Starter allows you to sell through social platforms or messaging apps with a simplified online store. Meanwhile, Shopify Plus costs from $2,500 monthly upwards and is enterprise eCommerce software designed for high-growth businesses with high annual revenue.

It’s worth noting that all Shopify pricing plans charge a transaction fee unless you use Shopify Payments. Shopify Payment will eliminate all transaction fees on Basic, Advanced, and Shopify plans and reduce the fees of Shopify Starter to 5%. 

Square Pricing

Square offers a Free plan, which enables users to sign up, access essential features, and create an eCommerce website. However, advanced features such as Site statistics, reporting, and other eCommerce functionalities are only available in the paid plans: Plus ($29/month) and Premium ($79/month) for yearly payment.

Square Online pricing plans

Square Free and Plus will charge 2.9% + 30¢ USD per online transaction, while the Premium plan will charge 2.6% + 30¢ USD.

Unlike many other platforms that allow you to pay monthly and adjust your plan as needed, Square Online requires a full year's payment upfront. This lack of flexibility might make alternative platforms more appealing if you're hesitant about committing for a year.

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Point-of-Sale System

Both Shopify vs Square are among the best POS systems for retail businesses. But are they the same? Who will win in the battle of Shopify vs Square in terms of point-of-sales? 

Shopify POS System

Shopify POS system offers industry-leading features for easy product, employee, and inventory management. The point-of-sale software allows for unlimited item additions, automatic product categorization, and the creation of product variations based on materials and colors.

There are two different pricing tiers available for Shopify POS system: Shopify POS Lite and Shopify POS Pro. 

• Shopify POS Lite ($5/month) is ideal for merchants who primarily sell at pops-up, markets and barely need an online store. 
• Shopify POS Pro ($89/month) is best for retail businesses with high foot traffic, large inventory catalogs, and multiple staff.

This eCommerce solution has tested and approved a wide range of Shopify POS hardware options to ensure they work seamlessly with their POS software. Here is the recommended list: Countertop Kit, Tap & Chip Card Reader, Tap to Pay on iPhone, and POS Go.

Square POS System

As a frontrunner in the point-of-sale system market, Square offers four different POS software options:

• 1 regular point-of-sale app
• 3 other software dedicated to restaurants, retail, and appointments.

They all have powerful functions for tracking inventory (both online and in brick-and-mortar stores), customer and order management, and real-time analytics.

While Shopify POS targets businesses of all sizes, newly established stores highly favor the Square POS system for its flat and transparent pricing.  

Square POS processing fees

The Square POS system does not charge a monthly or setup fee, and a starter pack includes a free card reader. However, a small transaction fee (starting from 2.6% + 10¢) applies whenever payments are made with Square POS.

Square POS hardware and equipment also vary, with prominent names like Square Register, Square Terminal, and Square Kiosk. 

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Ecommerce Features

When it comes to creating an online store, eCommerce features must be the #1 thing to consider. While Shopify is renowned as a top eCommerce platform, Square is just a newcomer in the market.

Can Square catch up with its rival in this Shopify vs Square battle? Can Shopify secure its crown against Square? Take a look at the table below to find out! 

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Marketing Features 

Most online businesses heavily rely on SEO (Search Engine Optimization) and marketing to sell their products. These are the make-or-break elements that decide whether your customers see your products before others.

So, how do Shopify vs Square compare in terms of SEO and marketing features? 

Shopify Marketing Features

As luck would have it, Shopify SEO is fairly adequate. You may easily add titles, meta descriptions, and images to your pages. Shopify also allows you to customize URLs and 301 redirects to avoid 404 errors. The site speed is decent, and it’s straightforward to structure your site by categories. 

Shopify also offers a blogging feature despite the fact that there is still room to grow. You can also add tags and edit titles or keywords. What’s more, Shopify SEO parameters make it easy to optimize your content and increase the chance of showing high on the search result pages. 

It’s worth noting that the platform offers excellent email capabilities for sharing information and promoting products. Shopify marketing automation allows you to send multichannel communications to enhance engagement automatically. What’s best, you can send up to 10,000 emails for free every month. 

Square Marketing Features 

When it comes to SEO capabilities, Square Online lets you customize page titles and meta descriptions, add alt text, and create headings. Plus, changing page and product URLs is super easy, and you don't have to worry about Square adding any prefixes to your URLs.

That being said, when running a Square Online store, you will have to create product redirects all by yourself. Moreover, the site speed is quite slow, and there’s no blogging option included with any Square Online plan.

In addition, the platform comes packed with advanced email marketing functionality. Square Email Marketing integrates seamlessly with Square POS, which allows you to grow your contact list automatically. No matter what you want to promote, new products, last-minute deals, or seasonal offers, Square can help you tailor suitable content faster using built-in AI technology and create compelling campaigns.

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Payment Options

The payment gateway is a crucial element of your store. Enabling customers to check out with various payment methods ensures a seamless customer experience. Consequently, you can boost your store's conversion rate, reduce cart abandonment, and thus increase sales volume.

Now, let's see what Square vs Shopify has to offer in terms of payment methods.

Shopify Payment Options

Shopify integrates with an impressive 100+ payment processors. In addition to popular choices such as Stripe, PayPal, and 2Checkout, this platform also accepts e-wallets like Google Pay or Apple Pay. 

What’s more, Shopify Payments, the in-house payment provider, is available to stores in 23 countries, including the US, UK, and Germany…

This processor eliminates all transaction fees on every purchase made in your store. With Shopify Payments, you can avoid transaction fees, but you still need to pay credit card processing fees, which depend on your Shopify pricing plan, order value, and number of purchases.

More than that, Shopify Payments grants you full access to Shop Pay, a checkout button dedicated to Shopify stores.

Square Payment Options

To no surprise, Square Pay is the main payment option of Square Online stores. This processor accepts all major credit cards like Visa, Mastercard, American Express, and Discover.

While the range looks rather small compared to Shopify’s huge choice of payment options, Square Online users are still able to accept payments via Google Pay or Apple Pay. Therefore, it’s not an exaggeration to say Square Online has everything you'll need to take payment.

Just like Shopify, Square Online also charges a fee for every transaction. You will have to bear 2.9% + $0.30 for each transaction through your online store, while the rate for in-person payment is cheaper at 2.6% + $0.30. However, if your customers make payments through an invoice or the card must be entered manually, the fees are much higher. 

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Ease of Use

Shopify Ease of Use

Unlike most eCommerce platforms, which struggle to combine power and ease of use, Shopify boasts amazing features yet a clean and friendly interface. With little to no technical knowledge, you can kickstart your online store by following the platform's Get-Started checklist. 

A team at LitExtension with different technical backgrounds tested out the platform for hands-on experience for this Shopify comparison. Nobody ever had any trouble creating a Shopify site, and the entire process was a pleasure. As previously stated, Shopify walks you through each step, and everything is laid out logically. 

When it comes to initial interactions with Shopify on a day-by-day basis, things are still straightforward.

Square Ease of Use

While Shopify takes longer to develop, customize, and configure an online store, Square makes life easier by handling most of the work. All you have to do is enter your business's name and address, pick the features you want, upload a logo, and choose the color you like best.

Your store then shows up with the details you fill in during the process. With just a few more texts and products, your online business is ready to fly off the ground! 

In addition, Square includes a drag-and-drop editor that allows you to access and alter anything immediately. You will never be able to do that using Shopify's section-based editor.

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Multichannel Selling

Customers are everywhere, from eCommerce sites and social media platforms to online marketplaces. Hence, it’s best to interact with your audience across platforms to increase the odds of making a sale. 

So, what do Shopify vs Square Online offer in terms of multichannel selling possibilities? 

Multichannel Selling with Shopify

If you ever wonder whether Shopify powers multichannel selling, the answer is yes, definitely! Multichannel Shopify makes it easier for merchants to manage and sell products across all sales channels. 

Besides the online store as the main selling channel, Shopify also provides Point of Sale and Buy Buttons, which are already included in every Shopify plan. Moreover, it’s straightforward to add other selling channels to your existing Shopify store using apps and integrations.

There are hundreds of selections for multichannel selling apps at the Shopify App Store, and you can even make specific integrations to your preferred online marketplaces. 

Multichannel Selling with Square

Like its competitor, Square also facilitates multichannel selling. You add a checkout button to your existing website, blog, and portfolio so that customers can easily purchase your products or services.

Even if you don’t have a website, you can still collect payment using a link or QR code generated by Square Online Checkout. Your customers can then settle the payment without leaving the current platform.

Last but not least, selling on social media with Square is possible. The ‘Order with Google’ feature is built into every Square Online site, allowing customers to find your business quickly and place online orders. The platform also integrates with Google Product Listings so that shoppers can find your products easily on Google Search, Shopping, or Images.

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Scalability & Internationalization

Shopify Scalability

Powering millions of online businesses across 170+ countries, globalization is a unique selling point of Shopify. The platform offers an enterprise solution, Shopify Plus, which can grant your business global growth without any limits. 

• Ship anywhere in the world within 1-5 working days and track every order at exclusive discount rates. 
• Customers will prepay VAT, duties, and local taxes at checkout. They can also pay their way with local payment methods. 
• The product catalog will automatically be filtered based on regional import and carrier restrictions. 
• Automatically convert prices to over 130 local currencies.
• Send the right message in every market with language translation and region-specific content.

Square Scalability

Although there is no special version for international selling, Square Online still allows you to ship your physical items from anywhere in the world. To enable that, Square Online provides an international shipping option for your business.

However, you need to build an international shipping profile, select the countries you want to ship to, and set the shipping rates. 

FYI: EasyShip, Shippo, and ShipBob are special shipping partners of Square Online. They all strive to offer an automated shipping experience, discounted rates with top global couriers, and hands-off order fulfillment and warehousing.

See more:

• Shopify vs Etsy: Pros and Cons of Each Platform
• Shopify vs Amazon: Key Differences and Benefits for Online Sellers
• Shopify vs eBay: Which Is the Better Choice for Your Online Store?

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Help & Support

Shopify Help & Support

Shopify has a great advantage over its rivals thanks to the top-of-the-class customer support it offers. Shopify's support team is available 24/7 via phone calls, live chat, and email. Therefore, they are attentive to your concerns and can resolve them as soon as possible.

Besides, Shopify merchants can easily conduct research using the Shopify Help Center or find answers in Shopify's vibrant eCommerce community.

Square Help & Support

Square also provides support via live chat, phone calls, and email. Nevertheless, please note that Square support is not available 24/7. Consequently, you might not be able to get practical assistance in case of problems and conflicts.

With that being said, Square offers a large knowledge base in its Help Center. You can seek answers using the built-in search query or browse through different categories to find your request.

Related posts: 

• Shopify vs Custom-built Website: Comparing Costs, Features, and Ease of Use
• Shopify vs Shopify Plus: Which Platform Suits Your Business Best?
• Shopify vs WordPress: Comparing Features, Ease of Use, and More

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Security

Shopify Security

When running a Shopify store, you needn’t worry about security. As an all-in-one eCommerce solution, Shopify takes care of all security-related issues in the background.

With SSL certification included in every Shopify site, you can rest assured knowing that all data transferred between you and your customers is highly encrypted. The platform also follows security standards for processing credit cards and debit cards, which contributes a lot to increasing the trustworthiness of your store. 

What’s more, every Shopify plan includes an internal fraud analysis. This analysis will include fraud indicators, support for third-party fraud apps, and recommendations.

Square Security 

With Square being a top payment processor, it’s apparent that Square Online inherits decent security features. 

Secure Card Readers and POS Shopware help protect customer payment details. While all payment data is well encrypted, card numbers, magnetic-stripe data, and security codes are never stored on any devices. This ensures that you don’t have to bear the burden of PCI compliance on your Square POS device. 

In addition, every Square account comes with free fraud monitoring and dispute management. There’s also a tool called Risk Manage, a risk management system that takes action on any suspicious card payment. 

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Shopify vs Square – Which is Best for Your Business?

Long story short, it's hard to determine the ultimate winner between Shopify and Square. While Shopify attracts new users with its powerful features to support businesses of all sizes, Square is more friendly to start-ups or entrepreneurs thanks to its affordable pricing plan.

Therefore, it solely relies on your needs when it comes to choosing between Square vs Shopify. Here comes our conclusion:

Go for Shopify if you want to:

• Build an eCommerce store with great scalability and flexibility.
• Benefit from Shopify's eCommerce integrations.
• Get 24/7 phone support.
• Have a strong POS system available on multiple devices.

Square is the ideal solution for you if: 

• You're on a tight budget and just looking for a platform with adequate features.
• You're familiar with processing payments through Square.
• You’re selling in-person and want to find an eCommerce platform that features strong POS abilities and allows you to easily expand to online commerce. 

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Shopify vs Square – FAQs

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Final Words

Both Shopify vs Square Online are amazing eCommerce solutions for your online business. While Shopify comes packaged with a wide range of integrations and decent opportunities to expand your selling channels, Square proves to be a user-friendly platform with strong POS features. 

As you keep up with this length, we do hope that the above details have provided you with a clear comparison between Square Online vs Shopify. These may help you pick out the most suitable platform for your business, or you can seek assistance from an eCommerce community of experienced online merchants. 

If you have found a suitable option between these two platforms and plan on migration, LitExtension, the #1 Shopping Cart Migration Expert, is delighted to assist you. With over 10 years of experience and 280,000+ successful migrations, we can help you transfer your data seamlessly and at your utmost convenience. 

Visit our eCommerce platforms section for up-to-date knowledge about the eCommerce industry.