Square vs Shopify: Features, Fees, and Which to Pick (2026)

Square and Shopify both let a business accept payments and sell online, but they start from opposite ends. Square is a payments and point-of-sale platform first — it can take payments with no monthly fee, which suits in-person and smaller sellers. Shopify is an ecommerce platform first — it charges a monthly subscription but provides a full online store and scales to large catalogs and high volume. This guide compares the two on pricing, fees, features, POS, and support, with current 2026 numbers.

Pricing and processing fees

Pricing is where the two differ most, and both changed their rates recently, so older comparisons are often out of date.

Square pricing

Square restructured its plans in late 2025 into three tiers: Free ($0/month), Plus ($49/month per location), and Premium ($149/month per location), with custom pricing for businesses processing over $250,000 a year. No monthly fee is required to start taking payments. On the Free plan, current processing rates are:

• In-person: 2.6% + 15¢ (raised from 10¢ in 2025).
• Online and invoices: 3.3% + 30¢ (raised from 2.9% + 30¢ in early 2026).
• Manually keyed: 3.5% + 15¢.

The paid plans lower these rates — Plus and Premium bring online down to 2.9% + 30¢ and in-person to 2.5% or 2.4% + 15¢ — which only pays off above a certain volume.

Shopify pricing

Shopify charges a monthly subscription, with four main tiers (billed monthly; annual billing saves roughly 25%):

• Basic: $39/month ($29 annual).
• Grow: $105/month ($79 annual) — formerly called the "Shopify" plan.
• Advanced: $399/month ($299 annual).
• Plus: from $2,300/month, for enterprise.

There is also a $5/month Starter plan, but it provides only a checkout link, not a full store. Using Shopify Payments, online card rates fall as the plan rises: 2.9% + 30¢ on Basic, 2.7% on Grow, 2.5% on Advanced, and 2.15% on Plus. In-person sales through Shopify POS run lower, around 2.6% + 10¢ on Basic. Using a third-party payment gateway instead of Shopify Payments adds a transaction fee — 2% on Basic, 1% on Grow, 0.6% on Advanced — so most merchants stay on Shopify Payments.

The practical takeaway: Square can be cheaper for a business with little or no monthly volume because there is no subscription, while Shopify's per-sale rates are competitive and its subscription is justified once a store is selling online at any real scale. Because both platforms adjust rates periodically, the official Shopify and Square pricing pages are the source of truth.

Features and ecommerce

This is where Shopify pulls ahead for online selling. Every Shopify plan includes a full online store with a drag-and-drop builder, themes, built-in SEO tools, multichannel selling across social and marketplaces, and an app store with thousands of add-ons. Inventory management is extensive across all plans, and direct dropshipping integrations make Shopify the stronger choice for that model.

Square includes a free basic online store (Square Online) and free basic inventory, which is enough for a business that sells mostly in person and wants a simple web presence. Its ecommerce feature set is lighter than Shopify's, and advanced capabilities sit behind paid plans. Square also offers strong industry-specific tools — for retail, restaurants, and appointments — that Shopify does not match natively.

POS and hardware

Square's roots are in point of sale, and its free POS software is polished and quick to learn, accepting all major cards and digital wallets. Hardware ranges from a free magstripe reader to the Square Reader ($59), Square Stand ($149), Square Terminal ($299), and Square Handheld ($399).

Shopify POS is included with every plan and integrates directly with the online store, so inventory and orders stay unified across online and in-person sales — a real advantage for businesses selling in both channels. Shopify's hardware includes its Tap & Chip reader and a fuller Retail Kit with a barcode scanner and receipt printer. For a business that is primarily a physical store, Square's POS is the more natural fit; for one that sells online and also wants in-person, Shopify POS keeps everything in one system.

Customer support

Square offers phone support on weekdays plus 24/7 automated chat, a seller community, and a resource library. Shopify provides 24/7 support along with a community forum and an extensive library of tutorials and guides. Both are well reviewed; in practice Shopify's round-the-clock live support is a point in its favor for stores that operate at all hours.

Frequently asked questions

What is the difference between Square and Shopify?

Square is a payment processor and POS system first, with no required monthly fee — well suited to brick-and-mortar businesses that need a simple way to take payments. Shopify is an ecommerce platform first, charging a monthly subscription in exchange for a full online store, deep ecommerce tools, and Shopify POS for in-person sales. Square leans in-person and simple; Shopify leans online and scalable.

Can I switch from Square to Shopify?

Yes. Migrating means exporting data from Square (products, customers, and so on) and importing it into Shopify, then verifying that everything came across correctly. Apps and migration tools can handle most of the transfer.

Is Square good for dropshipping?

Not especially. Square lacks the built-in dropshipping integrations that make sourcing and fulfillment manageable, though third-party apps can bridge some gaps. Shopify is the stronger choice for dropshipping thanks to direct integrations with dropshipping apps and its broader ecommerce toolset.

Which is cheaper, Square or Shopify?

For a business with little monthly volume, Square is usually cheaper because there is no subscription — only per-sale fees. For a business selling online at real volume, Shopify's lower per-sale processing rates and included store features tend to outweigh its monthly fee. The break-even depends on sales volume and how much of it is online versus in person.

Which to pick

Choose Square for a brick-and-mortar or in-person-first business that wants a simple, no-contract way to take payments with minimal fixed cost and only occasional online sales. Choose Shopify for an online-first business that needs a scalable store, deep ecommerce tools and apps, dropshipping support, or unified online-and-in-person selling through Shopify POS.

Next steps

The right platform comes down to where a business sells most and how much it expects to grow online. First Pier is an ecommerce agency in Portland, Maine that builds and optimizes Shopify storefronts and the POS and inventory systems behind them. For help deciding or migrating, get in touch.