Lightspeed vs. Square: POS Comparison

Lightspeed vs. Square Highlights

Who is Lightspeed For?

Lightspeed is a POS system vendor with products tailor-made for retail, restaurants and the golf industry. It also lets you process payments, either as a full-service solution with Lightspeed Payments or through a third-party payment processor. While its plans are stacked with powerful features, the price point isn’t cheap, making Lightspeed a better fit for established small and midsize businesses that will use its more advanced features. 

One of the features that makes Lightspeed shine is its robust POS inventory management system. Thanks to its useful tools and multichannel tracking, Lightspeed is great for businesses with high inventory turnover, particularly those that sell online and in person. We especially love that Lightspeed’s e-commerce features, like a website builder and social media tools, can help you affordably build an online presence. Check out our comprehensive Lightspeed review for more details.

Who is Square For?

Square is one of the best credit card processors for startups and small businesses thanks to its Free plan, straightforward processing fees and affordable hardware. It also offers industry-specific POS features for restaurants, retailers, service businesses and more.

We love how easy Square is to set up and use, especially for businesses just getting started that can’t afford to spend a lot of time or resources navigating a complex platform. Square’s Free plan includes a wide range of features, including POS software, a website builder, online selling, invoicing and inventory management. Businesses that need more advanced features can upgrade to Plus or Premium.

Square also offers additional business tools, including payroll, marketing and loyalty features. Some are included with Plus or Premium, while others are available as separately priced services or add-ons. Overall, Square is a flexible solution that can help you get off the ground and grow with your business.

Lightspeed vs. Square Comparison

Plans and Pricing

Lightspeed

Lightspeed offers a variety of POS services, with specific plans for the retail, restaurant and golf industries. There are also additional e-commerce plans for taking your business online, and we love that the basic e-commerce package is free. But if you have a large sales volume over $250,000 per year, Lightspeed can create a tailor-made package for you with custom rates. [Learn more about e-commerce and selling online.]

Lightspeed’s retail POS pricing is based on where you do business, how many locations you operate from and how many registers you need. All prices in the chart below reflect a U.S. business paying annually for one location and one register.

Here’s how the restaurant POS plans break down.

We love that Lightspeed lets you integrate an online store into your POS solution. You can access essential e-commerce features for free and some advanced features might come with your retail POS plans. We recommend speaking to Lightspeed to find out the best way to get all the features you need. The chart below shows how the Lightspeed eCom plans work when paying annually.

Square

Here’s a breakdown of Square’s plans and other costs:

Square Plans

Credit Card Processing Fees

Square uses flat-rate processing, with rates that vary by plan:

Hardware

Square also offers a range of proprietary POS hardware. New Square accounts may qualify for one free magstripe reader, while additional hardware starts at $59.

• Square Reader: $59
• Square Kiosk: $149
• Square Stand: $149
• Square Terminal: $299
• Square Handheld: $399
• Square Register: $899

Free and Paid Add-Ons

Square also offers an array of add-ons, including the following: 

Payment Processing

Lightspeed

Lightspeed provides a complete payment processing service for accepting payments in person and online. Your customers can pay with all major credit cards and digital wallets like Apple Pay and Google Pay. However, Lightspeed Payments is currently available in the U.S., Canada, Australia, the U.K., the Netherlands, Belgium and Ireland.

Lightspeed Payments offers straightforward processing rates, although rates vary by product and transaction type. Retail rates start at 2.6 percent + $0.10 for inserted, swiped or tapped transactions, while online transactions cost 2.9 percent + $0.30. Lightspeed charges a $15 chargeback fee. We appreciate that retailers can also use a third-party payment processor, although an additional monthly fee may apply. External payment processors might let you process payments in more countries or currencies, but you’ll want to compare rates and fees carefully.

Square

Square also provides a complete solution for accepting payments, but unlike Lightspeed, you must use Square as your payment processor. Square accepts all major credit cards and most internationally issued cards. However, payments must be processed in the official currency of the country where your Square account was activated. Square charges an additional 1.5 percent fee for international cards, and cardholders may also be charged currency conversion fees by their card issuer.

We like that Square doesn’t charge additional fees for chargebacks or dispute management. Square also offers Afterpay, which allows customers to pay over time in four installments while the business gets paid upfront. This can be a useful way to give customers more payment flexibility, particularly for larger purchases.

E-Commerce

Lightspeed

Lightspeed’s retail POS plans include built-in e-commerce tools, making it easy to sell online and in-store from the same system. The Basic plan includes basic Lightspeed eCommerce, while Core and Plus add more advanced e-commerce and marketing capabilities. We like that retailers can manage online and in-store inventory together, which helps prevent overselling and makes it easier to keep stock levels accurate across sales channels.

Lightspeed also provides tools for building and customizing an online store, selling through social media and connecting with marketplaces such as Amazon. Core and Plus add accounting, e-commerce and marketing integrations, giving businesses more options as their online operations become more complex. We especially like that Lightspeed combines these tools with the inventory management features that make its retail POS stand out.

Square

Square makes it easy to set up an online store, even if you’re starting from scratch. Its Free plan includes a website builder with basic layouts and design options, online selling tools and a free Square subdomain. Businesses can also manage online orders alongside in-person sales through Square.

Plus and Premium add more advanced e-commerce features, including expanded website customization and the ability to connect a custom domain. Square also offers customer accounts, multiple payment options and tools for selling through social media. We also like that businesses can manage items, customers and orders from the same Square ecosystem.

Square provides analytics and reporting tools to help businesses track sales and performance across their operations.

Hardware

Lightspeed

Lightspeed’s POS software can run on iPads or desktop computers, giving businesses flexibility in how they set up their checkout stations. You can download the POS software onto your own device and be up and running quickly.

Lightspeed also offers barcode scanners, iPad stands, cash drawers, printers, card readers and payment terminals. There are even hardware bundles. However, pricing for all of Lightspeed’s hardware options isn’t readily available on its website.

Square

Square offers a range of POS hardware for businesses that accept payments in person or on the go. New Square accounts may qualify for a free magstripe reader, and businesses can purchase additional readers, terminals and complete POS systems. Here’s what Square’s current hardware lineup costs:

• Square Reader for magstripe: First reader free for new Square accounts; additional readers cost $10
• Square Reader for contactless and chip: $59
• Square Stand: $149
• Square Kiosk: $149
• Square Terminal: $299
• Square Handheld: $399
• Square Register: $899
• Accessories: Prices vary

Additional Features

Lightspeed

Lightspeed offers many valuable features depending on which POS package you choose. We found the inventory management tools to be especially useful. You can use them to easily keep track of stock, create and manage purchase orders and access supplier catalogs through Lightspeed Wholesale and NuORDER. We also really love that you can track inventory across multiple locations and channels, including your physical and online shops.

The platform further includes solid marketing tools to connect with consumers and build customer loyalty. You can create customer profiles and use pre-built email templates. You’ll also get useful reports and insights that you can leverage to segment your customers to provide better service.

Beyond that, there are also API capabilities for Plus users to build custom workflows and integrations. Lightspeed can even help finance your business with a merchant cash advance program.

Square

Square offers several additional features, including inventory management. Businesses can track stock across locations, manage orders and use reporting tools to monitor inventory and sales.

Square also offers email marketing, text message marketing and customer loyalty tools. Some advanced features are included with Plus and Premium, while other services, such as payroll, are available for an additional fee. Square also offers financing options, including business loans and checking and savings accounts.

Lightspeed vs. Square Summary

Choose Lightspeed if:

• You’re looking for extensive features in your POS system and don’t mind paying more for them. 
• You want the flexibility to choose your own payment gateway. 
• You need advanced tools for managing your inventory. 

Choose Square if:

• You want an affordable POS system that can scale with your business. 
• You need robust tools for building an online presence. 
• You’re looking for affordable POS hardware, including full-fledged POS terminals.