In today’s digital age, providing a seamless shopping experience for customers is paramount for any business. An integral part of this process is the payment system you use. Two of the most prominent names in the online payment processing industry are Shopify vs Square. Each platform offers a suite of tools to help businesses thrive in the online marketplace.
However, deciding which one suits your business needs can be tricky. In this article, we’ll analyse the strengths and weaknesses of each provider, enabling you to make an informed decision.
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Shopify vs Square
| Feature | Shopify | Square |
|---|---|---|
| Monthly Fees | Basic: £21, Shopify: £57, Advanced: £219 | None |
| Transaction Fees Online | 2.2% + 20p (for the Basic plan) | 1.9% per transaction |
| Transaction Fees In-person | 1.7% (with Shopify POS) | 1.75% per chip and pin or contactless payment |
| Card Reader Cost | Chip & Swipe Reader: £29, Shopify Tap, Chip & Swipe: £49 | Contactless and Chip Card Reader: £41 |
| E-commerce Website | Yes | Yes, but less comprehensive |
| Inventory Management | Yes | Yes |
| Invoicing | Yes | Yes |
| Point of Sale | Yes (with Shopify POS) | Yes |
| Gift Cards | Yes (from Shopify plan and above) | Yes |
| Analytics and Reports | Yes (more detailed in higher plans) | Yes |
| Multi-Channel Selling | Yes | Yes |
| 24/7 Support | Yes | Yes |
Understanding Shopify
Shopify is a well-established platform that allows you to create a complete online shop from scratch, offering a variety of themes and customisation options. It also provides the tools to manage your inventory and track sales.
Payment processing features
Shopify offers a built-in payment processor, Shopify Payments, powered by Stripe. It allows you to accept payments from different channels, such as credit and debit cards, mobile payments, and third-party options like PayPal. All payments are integrated into your Shopify dashboard for easy tracking and management.
Pricing
Shopify’s pricing structure consists of several tiers. The Basic plan is priced at £29 per month, the Shopify plan at £79 per month, and the Advanced plan at £299 per month. Each tier includes an increased range of features. Transaction fees decrease as you move up the tiers, starting at 2.2% + 20p for the Basic Shopify plan.
Strengths and weaknesses
The strength of Shopify lies in its powerful e-commerce tools. It offers a one-stop solution for businesses looking to create an online store. However, its weakness lies in its transaction fees, which can be relatively high if you opt for third-party payment gateways.
Understanding Square
Square, on the other hand, started as a mobile payment solution but has since expanded to provide a wide array of services, including point-of-sale systems and an e-commerce platform.
Payment processing features
Square offers a comprehensive payment system, allowing businesses to accept payments via mobile, online, and in-person. Like Shopify, it supports a variety of payment methods, including debit and credit cards and mobile payments. It integrates with a range of e-commerce platforms, including WooCommerce and BigCommerce.
Pricing
Square has a transparent, straightforward pricing structure. For online transactions, it charges a flat rate of 1.9% per transaction. For in-person transactions, it charges 1.75% per chip and pin or contactless payment.
Strengths and weaknesses
Square’s strengths lie in its versatile payment solutions and transparent pricing structure. It’s a good choice for businesses that want a reliable, flexible payment system without the need for an extensive e-commerce platform. However, its e-commerce features may be limited compared to Shopify, which could be a downside for those planning to have a comprehensive online store.
Certainly, let’s delve into the hardware offerings from Shopify and Square, which are integral for businesses with brick-and-mortar stores or those who frequently participate in pop-up markets, fairs, or other on-the-go selling opportunities.
Physical devices and hardware products – Shopify vs Square
Shopify’s hardware
Shopify offers a variety of hardware options to support in-person sales through their Point of Sale (POS) system. These options cater to both smaller retailers and larger, more complex businesses.
- Card Readers: Shopify provides a couple of card reader options. The Shopify Chip & Swipe Reader connects wirelessly to your device and accepts both chip and swipe cards. For a more advanced option, the Shopify Tap, Chip & Swipe reader accepts contactless payments in addition to chip and swipe cards.
- POS Kits: Shopify offers different POS hardware kits, customised to the needs of different businesses. These kits usually include a card reader, iPad stand, cash drawer, and receipt printer.
- Additional Hardware: You can also purchase individual hardware components, such as receipt printers, barcode scanners, cash drawers, and shipping label printers directly from Shopify or from third-party vendors.
Square’s Hardware
Square also offers an array of hardware solutions, designed to meet the needs of a variety of businesses.
- Card Readers: Square offers the Square Reader for contactless and chip, which accepts chip cards, credit cards, and mobile payments. They also have the Square Reader for magstripe, which plugs into your device’s audio jack to accept swipe cards.
- Square Stand: For businesses seeking a more permanent setup, the Square Stand transforms an iPad into a complete point-of-sale system. It also includes a built-in card reader.
- Square Terminal: The Square Terminal is an all-in-one card processing device. This portable terminal accepts all forms of card payments and can print receipts or send them via email.
- Square Register: This is a fully integrated, complete POS system with a display for the seller and a smaller, facing display for the customer. It accepts all types of payments.
Shopify vs Square – Which is best for your business?
For complete online stores
If you’re looking to create an online store from scratch, complete with inventory management and comprehensive sales tracking, Shopify is the superior choice. It offers a robust e-commerce platform that can cater to businesses of all sizes.
For brick-and-mortar businesses branching into online sales
If you run a physical store and want to expand into the online market, Square might be a better option. Its affordable rates for in-person transactions, combined with decent e-commerce capabilities, make it a great choice for businesses aiming to provide a seamless omni-channel experience.
For businesses seeking a versatile, transparent payment system
Square stands out for businesses that need a flexible and straightforward payment solution. It’s compatible with multiple e-commerce platforms and offers transparent, flat-rate pricing, making itan attractive choice for small businesses.
Conclusion
In the Shopify vs Square debate, the winner depends on your business’s unique needs.
If you’re looking to set up a comprehensive online store with powerful e-commerce tools, Shopify is your best bet.
However, if you need a versatile and affordable payment system that seamlessly integrates with other e-commerce platforms, Square is the way to go.
Regardless of your choice, both platforms offer robust, secure payment solutions that can help your business succeed in the digital marketplace.
FAQ
Shopify’s user interface is very user-friendly and designed specifically for e-commerce, making it easy to manage online stores. Square also has a user-friendly interface, though its focus is more on payment processing and point-of-sale functionality.
Yes, you can use Shopify for your online store and use Square for your physical store, but it could be more efficient to use one platform across all sales channels for consistency and easier management.
Both Shopify and Square can accept major credit and debit cards, mobile payments, and other forms of digital payment such as Apple Pay and Google Pay.
Shopify charges 2.2% + 20p for online transactions in its basic plan, while Square charges a flat fee of 1.9%.
Both Shopify and Square offer 24/7 customer support. They both have resources like online tutorials, community forums, email support, and phone support.
Both Shopify and Square allow merchants to issue full or partial refunds, but the original transaction fees will not be returned.
Shopify and Square both offer a range of hardware, including card readers and receipt printers. Check their websites for the latest compatibility information.
Both Shopify and Square support multi-channel selling, allowing businesses to sell products on multiple online platforms such as Amazon, eBay, Facebook, and Instagram.
Shopify has a vast range of integrations for e-commerce, while Square’s integrations are more focused on payment processing and point-of-sale functionality.
Shopify has built-in shipping options, while Square offers shipping through integrations with third-party providers.
Yes, both Shopify and Square allow you to manage multiple store locations from a single account.
Both Shopify and Square have automated tax calculations based on the customer’s location. However, it’s always good practice to double-check these calculations for accuracy.
Both Shopify and Square have robust inventory management tools that allow you to track stock levels, set up alerts, and manage suppliers.
Yes, both Shopify (from the Shopify plan and above) and Square offer the option to sell gift cards.
Both Shopify and Square allow you to collect and manage customer data, such as contact details and purchase history.
Shopify has built-in tools for setting up a loyalty programme, while Square can support loyalty programmes through third-party integrations.
Both Shopify and Square are set up to handle mobile payments through their card readers and POS systems.
Both Shopify and Square offer tools and support to help businesses migrate from other platforms, but the process can be complex and time-consuming, so it might be helpful to seek professional assistance.
Both Shopify and Square have systems in place to detect fraudulent activity and help businesses manage chargebacks.
Both Shopify and Square provide detailed reports and analytics to help businesses track sales, understand customer behaviour, and make informed decisions.