Shopify vs Square vs Lightspeed: Which POS System Is Best for Retail?
Choosing between Shopify, Square, and Lightspeed depends on your retail business model, inventory complexity, and growth plans. Shopify is ideal for retailers focused on eCommerce and omnichannel sales. Square works best for simple single-location stores needing fast setup. Lightspeed suits retailers managing larger inventories or multiple locations that require advanced reporting and stock control. The best POS system isn’t about features alone, it’s about fit, scalability, and how well your systems work together.
TL;DR
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Shopify = eCommerce engine + POS
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Square = simplicity & speed
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Lightspeed = operational power & reporting
How to Choose the Right POS System
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Define your primary sales channel (online vs in-store)
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Evaluate inventory complexity
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Consider future growth plans
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Review reporting needs
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Compare total cost of ownership
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Test usability for staff
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Check integrations with accounting and eCommerce
Built From Real Retail Migrations
This comparison is based on a decade of real-world retail modernization projects involving POS migrations, multi-location rollouts, inventory restructuring, and omnichannel rollouts across independent and growing retailers throughout the Americas.
The goal is not to promote one platform, but to help retailers avoid costly mistakes and choose systems that fit their operations.
Who This Comparison Helps Most
✔ Retailers upgrading from legacy POS
✔ Multi-location stores planning growth
✔ Businesses adding eCommerce to retail
✔ Owners tired of inventory inaccuracies
High-Level Comparison (Quick Decision Table)
Feature |
Shopify |
Square |
Lightspeed |
|---|---|---|---|
| Best For | Online-first retailers | Simple in-store retail | Growing & complex retail |
| Ease of Setup | ⭐⭐⭐⭐☆ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐☆☆ |
| In-Store POS | Good | Excellent | Excellent |
| eCommerce Strength | Excellent | Basic–Good | Good |
| Inventory Depth | Medium | Basic–Medium | Advanced |
| Multi-Location Support | Medium | Medium | Strong |
| Reporting & Analytics | App-based | Basic | Advanced |
| Customization | App ecosystem | Limited | High |
| Scalability | High (via apps) | Moderate |
High (built-in) |
Shopify vs Square vs Lightspeed - Core Strengths
Shopify (Retail + eCommerce)
Strength |
Why It Matters |
|---|---|
| Best-in-class eCommerce | Ideal for omnichannel growth |
| Massive app ecosystem | Add features without switching platforms |
| Strong brand & support | Long-term platform stability |
| Unified online + POS | Same inventory across channels |
Tradeoffs
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Inventory depth requires paid apps
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Reporting is fragmented without add-ons
Best If:
You sell online + in-store and want flexibility over time.
Square (Simple Retail POS)
Strength |
Why It Matters |
|---|---|
| Fastest setup | Same-day go-live possible |
| Low upfront cost | Minimal financial risk |
| All-in-one simplicity | POS, payments, payroll in one |
| Easy staff training | Very low learning curve |
Tradeoffs
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Limited advanced inventory
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Reporting depth is basic
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Harder to scale beyond simple setups
Best If:
You run one location, simple inventory, and want speed.
Lightspeed (Retail Operations Platform)
Strength |
Why It Matters |
|---|---|
| Advanced inventory | Variants, matrices, suppliers |
| Strong reporting | Margin, sell-through, forecasting |
| Multi-location ready | Built for growth & complexity |
| Native retail logic | Designed for serious retailers |
Tradeoffs
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Higher monthly cost
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Longer onboarding
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Less flexible eCommerce than Shopify
Best If:
You’re scaling locations, SKUs, or complexity.
Inventory & Operations Comparison
(Where Most Retailers Feel Pain)
Capability |
Shopify |
Square |
Lightspeed |
|---|---|---|---|
| Variant Management | Medium | Basic | Advanced |
| Purchase Orders | App-based | Limited | Built-in |
| Supplier Tracking | App-based | Basic | Built-in |
| Stock Transfers | Medium | Limited | Strong |
| Reporting by SKU | App-based | Basic | Native |
| Forecasting | App-based | Minimal | Strong |
Key Insight:
If inventory mistakes cost you money → Lightspeed wins.
Payments & Fees (Hidden Cost Awareness)
Area |
Shopify |
Square |
Lightspeed |
|---|---|---|---|
| Native Payments | Shopify Payments | Square Payments | Lightspeed Payments |
| External Processor Fees | Yes | Limited | Yes |
| PCI Fees | Bundled | Bundled | Bundled |
| Contract Length | Monthly | Monthly | Monthly |
Important Note:
Negotiation matters. Paying annually helps. Many retailers overpay simply by not asking - something our Automate Your Business and 15 Steps Systems explicitly warn against.
Retail Hardware Comparison
| Hardware Category | Shopify | Square | Lightspeed |
|---|---|---|---|
| POS Terminal / All-in-One Terminal | Shopify POS & Tap & Chip Reader (paired with iPad/Mobile) | Square Register (Integrated) | Lightspeed POS (PC/Mac/Tab/Phone) |
| Mobile POS Device | Shopify Tap & Chip (Mobile) | Square Terminal | Works with iPad/Standalone tap on phone |
| Receipt Printer Support | Works with compatible printers (Star, Epson) | Square Receipt Printer | Works with compatible printers (Star/Epson) |
| Cash Drawer Support | Yes (via compatible receipt printer) | Yes | Yes (via compatible receipt printer) |
| Barcode Scanner Support | Yes | Yes | Yes (Bluetooth/USB compatible) |
| Integrated Payment Terminal | Shopify Tap & Chip, Shopify Tap & Chip Pro | Square Terminal | Wise POS-e BBPOS Chipper 2X WisePad (CAD) |
| Customer Display Support | Yes (external displays supported via POS device) | Yes (Square Stand + displays) | Yes (via iPads) |
| Kitchen/Order Display Support | Third-party integrations | Third-party | Yes (via iPads & kitchen printer) |
| Offline Mode Availability | Limited (cached, not full) | Yes (offline transactions supported) | Yes (offline support via local hardware config) |
| Hardware Purchasing Options | Shopify Hardware Store / partners | Square Shop | Lightspeed Store / BYOD |
| Hardware Bundles | POS Kits (iPad + Reader + Printer + Drawer) | Square Register Kits | Customize hardware bundles / BYOD |
| Platform Lock-In | Low (compatible with many standard peripherals) | Medium (best with Square hardware) | Low (compatible with many standard peripherals) |
| Ease of Setup (Hardware) | ⭐⭐⭐⭐☆ | ⭐⭐⭐⭐⭐ | ⭐⭐⭐⭐☆ |
| Best For (Hardware Simplicity) | Retailers comfortable with iPad + accessories | Retailers wanting all-in-one simplicity | Retailers needing advanced peripherals & configurations |
Hardware matters as much as software... choosing the right devices can make checkout fast, staff training easier, and reduce setup headaches.
Apps & Integrations Comparison
| Integration Category | Shopify | Square | Lightspeed |
|---|---|---|---|
| App Ecosystem Size | ⭐⭐⭐⭐⭐ (massive) | ⭐⭐⭐★☆ (growing) | ⭐⭐⭐⭐★ (large) |
| App Marketplace | Shopify App Store | Square App Marketplace | Lightspeed Marketplace |
| eCommerce Platforms | Native (Shopify Online) + Headless options | Basic online store + third-party | Native eCom + Shop, Big, Woo |
| Accounting Integrations | QuickBooks, Xero, FreshBooks, others | QuickBooks, Xero | QuickBooks, Xero, others |
| ERP Integrations | Odoo, NetSuite, Brightpearl, etc. (via apps) | Limited ERP partners | Built-in Netsuite, Unleashed, Brightpearl, Dear and more |
| CRM Integrations | Klaviyo, HubSpot, Salesforce, Zoho | Mailchimp, HubSpot, Zoho | Mailchimp, HubSpot, others |
| Email Marketing | Native + apps | Native + apps | Native + apps |
| SMS & Messaging | Klaviyo, Attentive, Postscript | MessageHero, Postscript | Marsello, Ikeono |
| Inventory Sync Tools | Stitch Labs, Skubana, Cin7, Katana | Shopventory, DEAR | SKU IQ, Cin7, Accumula |
| Omnichannel Integrations | POS + Online sync, marketplaces (Amazon, Walmart) | POS + Online + selected marketplaces | POS + Online sync (Amazon, Ebay, Walmart) |
| Loyalty & Rewards Apps | Smile.io, LoyaltyLion, Rise.ai | Square Loyalty | Lightspeed Loyalty, Marsello |
| Subscription / Recurring Billing | Recharge, Bold | Limited | Ecwid, Quotemachine |
| Gift Card Support | Native + apps | Native | Native + apps |
| Reporting & BI Integrations | Looker, Data Studio, Report Pundit | Square Analytics + partners | Advanced native BI + partners |
| Workforce / Time Tracking | TSheets, Homebase, Deputy | Homebase, 7shifts | Homebase, 7shifts, Deputy |
| Shipping Integrations | ShipStation, Shippo, EasyShip | ShipStation | ShipStation, others |
| Custom API Access | Yes, extensive | Yes | Yes, extensive |
When comparing apps & integrations, consider:
✔ Data flow: Does inventory sync between systems?
✔ Ownership: Do you control customer data or does the platform lock it?
✔ Future tools: Will you need advanced marketing, automation, or ERP later?
✔ Redundancy risk: Avoid duplicate tools that overlap poorly.
Note: Shopify's ecosystem may look more appealing but they largely rely on apps that Lightspeed has built in for many operations for growing retailers.
These tables are updated as of 2026... always check the latest compatibility guides for each platform.
Decision Guidance
Choose Shopify if:
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Your growth is online-first
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You want flexibility via apps
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You value ecosystem over structure
Choose Square if:
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You want simple & fast
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You have one location
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You don’t need deep inventory logic
Choose Lightspeed if:
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Inventory accuracy matters
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You manage multiple locations or warehouses
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You need strong reporting & controls
FAQ
Which POS is best for small retail businesses?
Square is often best for small, single-location retailers due to ease of setup and low upfront cost. However, growing retailers may outgrow it.
Is Shopify POS good for brick-and-mortar?
Yes, especially for retailers prioritizing eCommerce and omnichannel sales.
Is Lightspeed worth the cost?
For retailers with complex inventory or multiple locations, Lightspeed’s reporting and control often justify the price.
Can I switch POS systems later?
Yes, but migrations can be costly and disruptive... which is why planning matters.
Still Not Sure Which One Is Right?
Don’t Choose a POS Blindly
Most retailers pick systems based on demos and sales pitches.
Smart retailers use a decision framework.
👉 The Retail Tech Stack Bundle shows you:
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What to implement first
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What can wait
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How to negotiate pricing
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How to avoid migration mistakes
Get the Retail Tech Stack Decision Framework → Download
(Includes full tool comparisons, upgrade sequencing, and negotiation guidance)
Related Resource
-
15 Steps to Modernize Your Retail Tech Stack → Download
Choosing between Shopify, Square, and Lightspeed isn’t about picking the most popular platform... it’s about selecting the POS system that fits your retail operations, growth plans, and inventory complexity.
The right system can streamline operations, improve reporting, and reduce costly mistakes as your business scales.