By KarenDUhl June 12, 2025
In the current business climate, you need more than a great product. You also need tools that help you with sales, inventory, payments, and customer experience. That is where the POS systems come into play to make your operations seamless and give you more control over your business performance.
Square POS is one of the most often discussed options in the POS space. Square makes it easy with their impressive point of sale feature in a that is absolutely straight-forward and super flexible, which makes it easy to implement and popular especially among small to mid-sized businesses like cafés, boutiques, salons and food trucks. Whether you sell via physical stores, online or both, Square offers solutions that promise ease of use, sleek hardware, and a powerful ecosystem.
But is Square the ideal payment processor option for your business?
Read on to find what exactly is Square, what are its pros and cons, who can use it, an overview of pricing, and more.
What Is the Square POS System?
Square started back in 2009 as the joint venture by Twitter co-founder, Jack Dorsey and Jim McKelvey. Their goal? To make it easy for small businesses to quickly get up and start accepting card payments with little setup except a smartphone and a small card reader. Square has since transformed into a comprehensive point-of-sale system that caters to virtually every business type.
Today, Square POS serves retail stores, restaurants, eCommerce brands, and mobile sellers such as food trucks, market vendors, and service-based businesses. Its known for being easy to learn, scalable and flexible so it can be used in a variety of industries.
Hardware and Software Options
Square has a free Point-of-Sale app that runs well on both iOS and Android devices. If you need a physical setup, they’ve got you covered with hardware options like:
- Square Stand – great for iPad-based checkout counters
- Square Terminal – an all-in-one handheld device
- Square Register – a sleek, full countertop solution
These devices are built for durability and plug-and-play convenience. Whether you run your store on-the-go or from a fixed location, Square has a setup to match.
Key Features of Square POS
Here are the key features of Square POS:
Easy Setup and User-Friendly Interface
Square POS is popular for being easy to use. Many of those devices are plug and play, and the app is simple to set up. The dashboard is neat and easy to use, so new and manual switchers will find it user-friendly.
Inventory Management
Square makes inventory management easy to handle. You get:
- Real-time tracking across all sales channels
- Low stock alerts so you never run out
- Support for item modifiers and categories to organize your products
It all syncs beautifully, in-store or online, no matter how you sell.
Payment Processing
Square takes magstripe, chip cards, contactless payments and Apple Pay and Google Pay. The pricing is straightforward: 2.6% + 10¢ per in-person transaction, and no hidden fees.
You can also access instant transfers or keep funds in your Square Balance for faster spending through their debit card.
Customer Relationship Management
Square enables you to build better relationships by:
- Saved customer profiles
- Tracking of purchase history
- Built-in loyalty programs to reward repeat buyers
You can customize rewards and automate marketing with ease.
Employee Management
If you have a team, Square POS helps you manage them with:
- Time tracking and built-in scheduling tools
- Role-based access controls to restrict sensitive data
- Performance reports for productivity insights
All this is accessible from your dashboard.
Reporting and Analytics
Square’s analytics are powerful and easy to understand. You’ll get:
- Sales summaries by time, location, or staff
- Insights into best-selling items
- Real-time reporting for smarter decision-making
You don’t need spreadsheets or manual tracking anymore.
eCommerce Integration
Want to sell online too? You could use Square, which offers a free online store builder that integrates with your POS. You can manage:
- In-store and online sales in one place
- Inventory updates automatically
- Multi-channel selling across Instagram, Facebook, and more
This makes Square a true all-in-one solution for modern businesses.
Square POS Pricing Overview
Free POS Plan
- Cost: $0 per month, no setup or hidden fees
- What’s included:
- Square Point of Sale app with features like payment processing, sales tracking, basic inventory, returns, online ordering, digital invoices, and basic reporting
Paid Plans: Retail, Restaurants, Appointments
Square offers specialized paid tiers for business types. Monthly fees per location include:
| Plan | Monthly Fee | Key Benefits |
| Square for Retail Plus | ~$89/mo | Advanced inventory (COGS, purchase orders), retail reporting, team management |
| Retail Premium | Custom pricing | Unlimited features and volume-based custom rates |
| Square for Restaurants Plus | ~$69/mo | Enhanced restaurant management, seat/table tracking, 24/7 support, kitchen routing |
| Restaurants Premium | ~$165/mo | Multi-location features, payroll, shift management, enhanced reporting |
| Square Appointments Plus | ~$29/mo | Calendar sync, reminders, staff scheduling; Premium at ~$69/mo |
Pros of Using Square POS
Here are the pros of using Square POS:
No Monthly Fees for Basic Plan
The most significant benefit of Square POS is that it has a free POS plan. The basic software is free with no monthly fees with necessities such as sales, inventory, and payment processing. Hence, this what makes Square POS great for startups, freelancers, or small shops with high professional standards but little budget to work with.
Scalable for Growth
As your business grows, Square grows too. When the need arises, you can equip your store with features such as advanced stock, employee management, loyalty programs, and more. It’s also perfect for omnichannel sellers who sell both offline and online. Square can scale to meet your expansion and eCommerce launch goals.
Regular Updates and Support
Square is constantly improving its platform. Numerous features and software updates are introduced frequently to enhance performance and durability. Not to worry though, you’re not alone—Square has email, chat and phone support if something goes wrong. It also has a forum and help center filled with all kinds of useful resources.
Cons of Using Square POS
Here are the pros of using Square POS:
Limited Customization for Large Enterprises
For bigger or more complex businesses, Square POS can seem constricting. You won’t have the level of customization or inventory capabilities you would with an enterprise-level POS. For companies with hundreds of SKUs or custom workflows, Square may not be enough.
Account Stability Concerns
Some users have reported sudden account holds or frozen funds, especially in industries Square flags as high-risk. This can disrupt cash flow and create unexpected headaches. While it’s not a common issue, it’s something to be aware of—especially if you process high transaction volumes or operate in a regulated space.
Add-on Costs Can Add Up
While the core POS is free, many useful features—like loyalty programs, payroll, and email marketing—come with added fees. These add-on services are great, but they can get expensive over time. If you’re not careful, your “free” POS system can become a high monthly expense.
Square POS for Different Industries
Here are the application of Square POS across various industries:
Retail Businesses
Square is a good option for retail stores — whether you’re selling clothing, electronics, or handmade goods. It has strong inventory features to track inventory and set up stock alerts so your products never sell out, plus to help you organize items in a category format. With barcode scanning through the app, checkout is fast and easy.
You can even improve customer retention with gift cards and loyalty program integration that are fully compatible with your POS system. It is great for small to mid-size retail stores wishing for modern systems, without the headache and hassle of complicated systems.
Food and Beverage
Do you own a cafe, food truck, or restaurant? Square has your back. Its food-service functions include open tickets, tips and even table management for dine-in locations.
You can connect a Kitchen Display System (KDS) to streamline communication between front-of-house and back-of-house. Everything syncs in real time, so there’s no need for handwritten orders or shouting into the kitchen. Square makes the whole dining experience more efficient.
Service-Based Businesses
If you are own a salon, spa, consulting, or other appointment-based services, Square now provides Square Appointments—a scheduling tool integrated with the POS. It allows your clients to book online and keeps track of your calendar and availability.
You can also send text message reminders to decrease no shows and keep your schedule running smoothly. It is an all-in-one solution that keeps service providers organized and ensures a professional client experience.
Who Should Use Square POS?
Square POS is a great fit if you’re just starting out or need something simple and reliable. It’s especially handy for:
- New businesses that want to avoid upfront costs
- Mobile vendors and pop-up shops who need portable, easy-to-set-up solutions
- Cafés, salons, and boutiques looking for sleek hardware and built-in tools like tipping, appointments, and inventory
If your business is small to mid-sized and you value ease of use, Square is hard to beat.
Not Ideal for:
While Square is versatile, it’s not for everyone. It may fall short for:
- High-risk businesses like vape shops or adult services, which may face account holds
- Enterprise-scale retailers that need advanced inventory controls or deep integrations
- Complex manufacturing setups requiring custom workflows or ERP syncing
For these types of businesses, a more customizable or industry-specific POS solution might be better.
Conclusion
Square POS is one of the most accessible and user-friendly point-of-sale systems on the market today. It’s perfect for small businesses, startups, and anyone who needs to get up and running quickly without a big budget or technical team.
Its free plan, flexible hardware, and wide range of features—like inventory tracking, payment processing, customer loyalty tools, and eCommerce integration—make it a strong contender for modern retailers, cafés, salons, and service providers.
That said, it’s not the best fit for large enterprises or high-risk businesses that need advanced customization or guaranteed account stability.
If you’re looking for a scalable, sleek, and reliable POS solution, Square is absolutely worth considering.
Frequently Asked Questions
1. Is Square POS really free?
Yes, Square offers a free basic POS plan with no monthly fees. You only pay standard transaction fees per sale. Optional add-ons like loyalty programs or payroll come at extra cost.
2. Can I use Square POS without buying hardware?
Absolutely. You can run Square’s free POS app on your smartphone or tablet (iOS or Android). However, for smoother checkout, you can add hardware like a reader, stand, or register.
3. Does Square work for online businesses?
Yes. Square includes a free online store builder and supports multi-channel selling. You can sync inventory across in-store and online sales, and even sell on social platforms like Facebook or Instagram.
4. What payment methods does Square accept?
Square accepts magstripe, chip cards, contactless payments (like Apple Pay and Google Pay), and even manual entry or invoicing for remote sales.
5. How secure is Square POS?
Square uses end-to-end encryption and is fully PCI compliant, ensuring safe transactions for you and your customers. Plus, you get built-in fraud detection and real-time alerts.