Our Pick: Square for most Australian retail businesses — free POS software, transparent pricing, no monthly fees, and excellent hardware. Choose Shopify POS if you need a powerful online store integrated with your in-store sales for true omnichannel retail.
Square and Shopify POS represent two different paths into point-of-sale for Australian retailers. Square is a POS-first platform that's expanded into ecommerce, while Shopify is an ecommerce giant that's built a POS system for in-store selling. Both are excellent, but they serve different primary needs.
We've tested both platforms in Australian retail environments. Here's our detailed comparison to help you choose the right POS for your business.
Side-by-Side Comparison
| Feature | Square | Shopify POS |
|---|---|---|
| POS Software Cost | Free | From $57 AUD/mo (Shopify Basic) |
| POS Pro Upgrade | $69 AUD/mo per location | $129 AUD/mo add-on |
| Tap/Chip Fee (AU) | 1.6% | 1.7% (Basic) / 1.6% (Shopify) / 1.5% (Advanced) |
| Online Payment Fee | 2.2% | 2.9% + 30¢ (Basic) |
| Hardware Required | Square Reader ($59) | Shopify card reader + iPad/tablet |
| GST Handling | ✓ | ✓ |
| Inventory Management | ✓ | ✓ Strong |
| Online Store | Basic (Square Online) | Excellent |
| Multi-Location | ✓ | ✓ |
| Staff Management | ✓ | ✓ |
| Loyalty Programme | ✓ (add-on) | Via apps |
| Xero/MYOB Integration | ✓ | ✓ |
| Contract | No lock-in | Monthly or annual |
| Our Score | 9.0/10 | 8.5/10 |
1. Pricing & Fees
This is Square's biggest advantage. Square's POS software is completely free — you download the app, set up your products, and start selling. You only pay transaction fees: 1.6% for in-person tap or chip payments, 2.2% for keyed-in or online payments. No monthly subscription, no lock-in contract, no hidden fees.
Shopify POS requires a Shopify subscription, starting at $57 AUD/month for the Basic plan. The POS Lite feature is included, but for full POS features (staff permissions, advanced reporting, custom receipts), you need POS Pro at an additional $129 AUD/month. Transaction fees range from 1.5% to 1.7% for in-person payments depending on your Shopify plan.
For a retail business doing $10,000/month in card sales, Square costs approximately $160/month (fees only). Shopify Basic with POS Lite costs approximately $227/month ($57 subscription + $170 in fees at 1.7%). The gap widens at lower volumes and narrows at higher volumes where Shopify's lower per-transaction fees on higher plans can help.
Winner: Square. No monthly fees makes it dramatically cheaper for most small retailers.
2. Hardware
Square offers purpose-built hardware designed and sold directly in Australia. The Square Reader ($59) connects to your phone or tablet via Bluetooth. The Square Terminal ($429) is an all-in-one portable terminal with a built-in receipt printer. The Square Register ($1,299) is a complete countertop system with dual screens. All hardware is sleek, reliable, and well-reviewed.
Shopify's hardware options for Australia include the Shopify card reader and various third-party accessories. You'll typically need an iPad or tablet to run the Shopify POS app, plus a compatible card reader, receipt printer, and barcode scanner. The setup is more fragmented and often costs more in total than Square's integrated solutions.
Winner: Square. Purpose-built, well-designed hardware available directly in Australia.
3. In-Store POS Experience
Square's POS app is fast, intuitive, and designed for high-volume retail and hospitality. Ringing up sales, applying discounts, splitting payments, and processing refunds are all quick and easy. The interface is clean and requires minimal training. Square also offers specialised POS apps for restaurants and appointments-based businesses.
Shopify POS is also well-designed and easy to use. Its strength is the seamless connection between your online catalogue and in-store inventory — products, prices, and stock levels sync automatically. For businesses selling both online and in-store, this unified catalogue is extremely valuable.
For pure in-store retail, Square's POS experience is slightly faster and more polished. For omnichannel selling, Shopify's integration advantage is significant.
Winner: Square for pure in-store. Shopify for omnichannel.
4. Online Selling
This is where Shopify dominates. Shopify is one of the world's leading ecommerce platforms, powering millions of online stores globally. If you want a professional online store with customisable themes, SEO tools, abandoned cart recovery, discount codes, gift cards, and a massive app marketplace — Shopify is in a different league.
Square offers Square Online, a basic ecommerce solution that lets you create a simple online store. It's adequate for businesses that want a basic web presence and online ordering (particularly restaurants), but it can't compete with Shopify for serious ecommerce. If online sales are a significant part of your business, Shopify is the better platform.
Winner: Shopify by a wide margin. The best ecommerce platform available.
5. Inventory Management
Both platforms handle inventory tracking, but Shopify has a slight edge for businesses with complex inventory needs. Shopify tracks stock across multiple locations, supports product variants (size, colour), handles transfers between locations, and provides detailed inventory reports. Its inventory management is deeply integrated with the online store.
Square's inventory management covers the essentials — stock tracking, low stock alerts, product categories, and basic reporting. Square for Retail (the advanced plan at $69/mo per location) adds purchase orders, vendor management, and more detailed inventory reporting. For most small retailers, Square's free inventory features are sufficient.
Winner: Shopify for complex, multi-location inventory. Square is adequate for simpler needs.
6. Reporting & Analytics
Both platforms provide solid sales reporting. Square's dashboard shows real-time sales, popular items, peak hours, staff performance, and customer insights. Reports are clear and actionable, even on the free plan. Square's analytics are particularly strong for understanding in-store performance.
Shopify's reporting is comprehensive, especially on higher plans. You get sales by channel (online vs in-store), customer reports, financial summaries, and marketing analytics. Shopify's reports are better for understanding your business across channels, while Square's are more focused on in-store metrics.
Winner: Draw. Square excels at in-store analytics; Shopify excels at omnichannel reporting.
7. Australian-Specific Features
Both Square and Shopify handle Australian GST automatically and integrate with Xero and MYOB for accounting. Square has a stronger Australian presence for POS — it offers local phone support, next-business-day deposits to Australian bank accounts, and hardware available for direct purchase in Australia.
Shopify's Australian support is primarily online, though it does have an Australian team. Shopify Payments (its built-in payment processor) is available in Australia with competitive rates. Both platforms comply with Australian consumer protection regulations and handle AUD natively.
Winner: Square for local POS support. Both handle GST and AUD well.
Who Should Choose Square?
- Small retailers wanting a free POS system with no monthly fees
- Market stall operators, pop-up shops, and mobile sellers
- Cafés, restaurants, and food businesses
- Businesses wanting simple, transparent pricing (no surprises)
- Retailers who primarily sell in-store with minimal online sales
- Service businesses (appointments, bookings)
Who Should Choose Shopify POS?
- Retailers wanting a professional online store integrated with in-store POS
- Omnichannel businesses selling online, in-store, and on social media
- Growing retailers with complex inventory across multiple locations
- Businesses already using Shopify for ecommerce
- Retailers wanting access to Shopify's massive app ecosystem
- Brands wanting a highly customisable online shopping experience
Our Final Verdict
For most Australian retail businesses starting out or focused primarily on in-store sales, Square is the clear winner. Its free POS software, transparent pricing, excellent hardware, and no lock-in contract make it the lowest-risk way to start accepting card payments. You can be up and running in an afternoon.
Shopify POS is the right choice if your business is inherently omnichannel — if you sell online and in-store, or plan to. Shopify's ecommerce platform is world-class, and having your online and in-store inventory, orders, and customer data unified in one system is genuinely powerful. The monthly cost is justified if you're generating significant online revenue.
Many Australian retailers start with Square and add Shopify later when they're ready for ecommerce. That's a perfectly valid approach.