Square and Lightspeed Retail are both strong point of sale systems, but they target different shops. Square is a free, all in one POS that turns a tablet or phone into a till, ideal for small retail and hospitality. Lightspeed Retail is a paid platform built for retailers who live and die by their stock control. The decision comes down to how much inventory complexity you have, and whether you will use what you pay for.
The plans, and who each is built for
The table above estimates your monthly cost from your own card volume and average transaction. The table below is the point in time pricing line up. Pricing as of June 2026; we verify these against provider pricing every month.
| What you pay | Square | Lightspeed Retail |
|---|---|---|
| Software per month | $0 | $129 to $329 |
| In person rate | 1.6% | 1.5% |
| Hardware from | $65 (reader) | iPad based or terminal |
| Free trial | Free to start | 14 days |
| Inventory | Good for small shops | Deep, multi store |
| Integrations | Square ecosystem | 250+ (Xero, MYOB, Shopify, WooCommerce) |
| Contract | Month to month | Month to month or annual |
| Best for | Small retail, cafes, pop ups | Inventory heavy and multi store retail |
Pricing and rates compared
Square wins the cost line for most small businesses because the POS software is free. You pay 1.6% on card payments and nothing for the system itself, so a shop turning over $20,000 a month in cards pays around $320 in processing and no software fee. Lightspeed Retail charges $129 to $329 a month for software, plus a slightly lower 1.5% processing rate. That 0.1% saves roughly $20 a month at $20,000 of volume, which does not come close to covering the software fee at that scale. The maths only tips toward Lightspeed when high volume, multiple stores or the value of its inventory tools enter the picture. Run your real volume through the calculator above to see the gap for your shop.
Who each one is built for
Square is for small retail, cafes and pop ups that want to start trading today without a software bill. It covers payments, basic inventory, staff and reporting, and even table service through its restaurant mode, all from a free app.
Lightspeed Retail is for retailers with serious stock: hundreds or thousands of SKUs, variants, supplier orders and several locations. Its inventory engine, purchase ordering and multi store reporting are the reason to pay for it, and they save real time once your catalogue is large.
Australian compliance and integrations
Both run in Australia and integrate with the accounting software local businesses use. Lightspeed Retail lists 250 plus integrations including Xero, MYOB, Shopify and WooCommerce, which makes it a strong hub for an inventory heavy, omnichannel retailer. Square integrates across its own ecosystem and major accounting tools too. Either will keep your sales flowing into your books without manual entry, so integration is rarely the deciding factor on its own.
Switching and getting started
Square is the faster start: download the app, pair a $65 reader, and sell the same day. Lightspeed Retail involves importing your catalogue and configuring inventory, which takes longer but is the point of the platform. Use Lightspeed's 14 day trial to load a sample of your stock and test the workflow before you commit, and keep your old system available during the cutover.
Ratings, hardware and support
In our review scoring Square rates 4.7 out of 5 and Lightspeed Retail 4.3. Square scores for value and simplicity; Lightspeed scores for depth and its 24/7 support. Square runs on an inexpensive reader plus your own device, while Lightspeed Retail runs on an iPad based setup or a retail terminal, so factor the hardware path into your start up cost.
Pros and cons for this matchup
Square wins on free software, the cheapest start, simplicity and light hospitality support, but its inventory tools top out for larger catalogues. Lightspeed Retail wins on deep inventory, multi store control, 250 plus integrations, a lower processing rate and round the clock support, but it carries a real monthly fee that only pays off at scale.
The verdict
For a small shop, cafe or pop up that wants to start free and keep things simple, Square is the clear pick, and its free software beats Lightspeed's rate advantage at small volumes. For an inventory heavy or multi store retailer that needs proper stock control and supplier management, Lightspeed Retail is worth its monthly fee. Decide on your stock complexity first, then check the cost gap for your volume in the calculator above.