Square vs. Lightspeed
Square and Lightspeed both enable business owners to accept payments and manage their businesses. Once you get down to the details, however, there are clear differences between the two.
How Square works
The foundation of Square is a robust payment acceptance system. With Square, you can not only accept both payment cards and mobile payments, but also offer buy now pay later (BNPL) with Afterpay. Additionally, Square offers physical Point of Sale (POS) hardware at affordable prices while, with Square Online, you can use the Square payment system without hardware.
On top of that, Square has built a huge ecosystem of business tools, many of which are free or freemium. Additionally, it has over 5000 partner integrations ranging from cross-industry staples (e.g. accounting software) to niche tools for diverse business sectors, particularly retail and restaurants.
How Lightspeed works
Like Square, Lightspeed offers the option to accept payment cards and mobile payments. However, at present, it does not have a native integration with a BNPL service.
Officially, Lightspeed offers its services to businesses of all sizes. In practice, however, its pricing structure is unlikely to be attractive to small businesses. This means that its real target market is medium-sized businesses. With that said, it’s not really intended for either enterprises or franchises
Square vs. Lightspeed – a direct comparison table
Square vs Lightspeed - a direct comparison table
Here is a table showing the key features of Square and Lightspeed. As previously mentioned, Square’s services are suitable for small businesses as well as medium-sized and larger ones. Square also has a much broader range of additional tools and integrations. This makes it easier for businesses to customize how they use Square.
4.1/5
Square’s Trustpilot score
4.0/5
Lightspeed’s Trustpilot score
Cost comparison
| Square | Lightspeed | |
| Built-in payment processing solution |
✔ | *Integration with Lightspeed Payments available |
| No chargeback fees | ✔ | $15 |
| Next day transfer as standard | ✔ | - Two Business Days |
| No chargeback fees | ✔ | No |
| Instant transfer - access funds in minutes (for a fee) |
✔ | No |
In-person payments
| Square | Lightspeed | |
| Free POS App with no monthly fees | ✔ | Yes |
| All-in-one POS system with customer display and built-in software |
Square Register - $899 | Yes |
| Portable EFTPOS machine with built-in receipt printer & free, pre-installed POS software |
Square Terminal - $399 | Yes |
| Countertop iPad POS stand with built-in card reader |
Square Stand - $249 | Yes |
| POS hardware starting price | Square Reader - $59 | Yes |
| Physical gift cards | ✔ | Yes |
| Afterpay acceptance in person | ✔ | Yes |
| Built-in surcharge feature | ✔ | Yes |
| Offline mode (Process card payments without internet access) |
Yes with Square Terminal, Square POS, Square Retail, Square Restaurantand Square Register | Yes with some features unavailable offline |
Online and remote payments
| Square | Lightspeed | |
| Free online store | ✔ | No |
| Photo Studio app for item library and online store |
✔ | No |
| Payment links | ✔ | No |
| Invoicing software | ✔ | No |
| Virtual Terminal to take payments over the phone or on your computer |
✔ | No |
| Afterpay acceptance online | ✔ | ✔ |
| e-Gift Cards | ✔ | ✔ |
Solutions for retail stores
| Square | Lightspeed | |
| Retail POS System | ✔ | ✔ |
| Free monthly plan | ✔ | No |
| Inventory management | ✔ | ✔ |
| Unlimited items | ✔ | No |
| Auto-generate SKUs | ✔ | No |
| Auto create from GTIN | ✔ | No |
| Cross-location stock counts | ✔ | ✔ |
| Customisable Item Grid | ✔ | No |
| Sell by weight / decimal | ✔ | No |
| Item categories | ✔ | ✔ |
| Advanced item search | ✔ | ✔ |
| Inventory counting tool | ✔ | ✔ |
| Smart stock forecasts | ✔ | ✔ |
| Barcode printing | ✔ | ✔ |
| Cross-location returns and exchanges | ✔ | ✔ |
| Automatic purchase orders | ✔ | Yes on Pro plan only |
| Order history | ✔ | ✔ |
| Vendor management | ✔ | ✔ |
| Digital receipts | ✔ | ✔ |
| Vendor sales reports | ✔ | ✔ |
| Multi-store management | ✔ | ✔ |
| CRM, Marketing & Loyalty | Starting from $20/mo | Starting from $229/mo |
| Team management software including rostering and time tracking |
✔ | No |
| Sell on Instagram | ✔ | ✔ |
Solutions for restaurants
| Square | Lightspeed | |
| Restaurant POS System | ✔ | ✔ |
| Free monthly plan | ✔ | *Free plan only available when processing payments through Lightspeed Payments |
| First party hardware built for restaurants | ✔ | No |
| First party online & QR ordering | ✔ | No |
| First party Kitchen Display System | ✔ | No |
| Mobile POS | ✔ | No |
| Auto-menu creation | ✔ | No |
| Kitchen performance reports | ✔ | No |
| Floor plan customisation | ✔ | No |
| Course management | ✔ | ✔ |
| Seat management | ✔ | ✔ |
| Restaurant inventory management | ✔ | ✔ |
| Advanced reporting (close of day, shift, live sales) |
✔ | ✔ |
| Team management software including rostering and time tracking |
✔ | ✔ |
| CRM, Marketing & Loyalty | Starting from $20/mo | Starting from $229/mo |
*Competitive data on this page was collected as of 15 Oct 2022 and is based on information found on lightspeedhq.com. This information is subject to change or update without notice. Square does not make any representations as to the completeness or accuracy of the information on this page.
In short, both Square and Lightspeed are highly capable payment acceptance solutions. Square’s pricing structure is designed to allow businesses to start small and grow. Lightspeed, meanwhile, is better suited to businesses that are already at least medium-sized.
The real difference between the two services comes when you look beyond payment processing. Square offers a whole ecosystem with about everything businesses need to run their operations successfully. Gaps in Square’s native service are seamlessly filled by partner integrations available in the Square App Marketplace.
This means that business owners have a convenient path to building highly customized systems that they can trust to work smoothly.
Why businesses choose Square
Many businesses turn to Square purely because they want a secure payment system that’s also easy to use and affordable. In particular, they appreciate the fact that Square offers POS hardware to suit all situations and budgets. Options range from the basic but effective Square Reader to the feature-rich Square Register via the all-around workhorse of the Square Terminal.
Once they’ve connected to Square, they have access to the wide range of useful products and services in the Square ecosystem. There is also a huge selection of vetted integrations. Some businesses choose Square precisely because they want access to a solution that is guaranteed to work out of the box but is still customizable.
Other businesses choose Square because of its attractive cost structure. For example, Square offers free plans for both retail POS and restaurant POS. In both cases, these free plans will provide most, if not all, the features most smaller businesses need. Lightspeed, by contrast, currently does not have a free plan for retail POS and only has a very limited free plan for restaurant POS.
Offsite and online options
Some retailers now operate purely online. Even if that’s not the case for you, it’s highly advisable that you have at least one online option. In fact, it’s quickly becoming almost mandatory. Restaurants too, despite having to have physical premises, can still benefit from expanding their online booking, pick-up and delivery options.
If you’re really not ready to commit to running a website, then Square paylinks allows you to send shoppable links directly to your customers (e.g. via email). Square also offers free invoicing software.
On the other hand, if you do want to run an online store, Square Online makes it easy. You don’t need any technical skills and it integrates seamlessly with the Square virtual terminal as well as all other Square digital services.
Having an online store also allows you to leverage shoppable posts in social media including on Facebook, Instagram and TikTok. Social selling can really expand your reach, especially with younger adults.
Square ecosystem offerings
Square is so much more than just a secure, easy-to-use and cost-effective way to accept payments. It’s a whole suite of tools and services designed to help all businesses to succeed on their own terms. For example, Square can help you to manage appointments, run a loyalty program or even get a business loan.
Get started with Square today.
Everything you need to run your business, anywhere, anytime.
Square has all the tools you need to reach your customers and grow your business, whether in person, online or both.
Set up a free online store that seamlessly syncs with your in-person sales, items and customer management.
Send an unlimited number of invoices, estimates or recurring invoices to request payments for goods & services.
Square Point of Sale is simple to set up, easy to use and has no monthly costs, you only pay processing fees.
Simplify your day with our web-based appointment scheduling software and app.
Streamline your operations with Square for Retail’s advanced Inventory & vendor management, reports, purchase orders, barcode label printing, and more.
Our restaurant POS system is built for speed. From menu management to coursing, every tool helps your team move faster.
Get your money deposited in your bank account as fast as the next day or instantly for a fee.
Hardware for selling anywhere.
The fastest and most secure way to pay. Accept chip and PIN cards, contactless payments, Apple Pay and Google Pay. An easy solution for your on-the-go business.
The all-in-one portable EFTPOS machine that lets you accept all kinds of payments easily and print (or email) receipts – the perfect solution for tableside services.
The fully integrated touchscreen point-of-sale that lets you start selling right out of the box. Manage card and contactless payments, online sales and more, all from one POS register.
Turn your iPad into a powerful point of sale with payments built in. In a swivel, Stand becomes a customer display, so you can sell accurately and customers can confirm their total and pay.
Frequently Asked Questions
You can go from downloading Square POS to making your first sale in minutes by signing up for your free account here. Our hardware works out of the box with no configuration required. You can create your own site with our website builder on Square Online or sync your existing ecommerce platform.
Our Support Centre can help with general questions, and once you have signed up for an account, you can contact our highly trained customer support team via phone or email.
Using the Square POS system is very intuitive. Most employers teach their new team members in a matter of minutes, not hours.
Yes. Square POS lets you set up and sync your online store in no time at all. You can also sell gift cards online, and sell through social media with a couple of taps.
Yes, sales from online and in person automatically update your inventory levels, and you automatically receive inventory alerts when you’re running low. It’s inventory management made easy. Learn more about our inventory management tools here.
Yes! Square’s app marketplace lets you find third party apps that you may already use and depend on. From accounting apps and eCommerce solutions to inventory and employee management, Square works with apps that can help with whatever your business needs. Learn more about our App Marketplace here.
Absolutely. Square is much more than the little white card reader and payment processing. We’ve been a champion for small business from the start, and with our suite of add-on features, you can pick and choose tools to suit the needs of your business. Beyond payment processing, you can manage teams, take payments in the field or at pop-ups on the mobile app, and sell online through Square Online. You can sell in person via pickup or delivery, and get paid with invoices or even over the phone, so you can manage your business with ease and reach your customers everywhere.