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The Square and Lightspeed terminals have had a huge impact on the restaurant industry. They offer an alternative to cash-only restaurants while bringing order to the often chaotic process of accepting credit cards from customers. With their ease of use, they’ve become fixtures in most restaurants but how do these two different companies stack up?
Square is a payment processing company that allows users to accept credit card payments using their iOS or Android app. Lightspeed is another payment processor that offers similar features. Which one is better? Read more in detail here: square pos.
Square and Lightspeed both provide fully functional point-of-sale systems for retail, restaurants, and internet usage. Both companies have their own payment processors, but Lightspeed allows you to use a third-party processing if you want (for a higher monthly fee). Lightspeed is better on iOS, whereas Square has superior iOS and Android mobile applications.
Here’s a brief rundown of who each system is most appropriate for:
- Square is ideal for microbusinesses, solopreneurs, and expanding small companies.
- Lightspeed: For medium-sized enterprises with many locations, inventory management, sales of age-restricted commodities, and golf courses, Lightspeed is the best option.
When to Use a Substitute: Square and Lightspeed are largely used by brick-and-mortar stores and for mobile commerce. Shopify is a superior option if your primary goal is to sell online. It’s the greatest ecommerce platform for small businesses, with a fantastic multichannel POS system that connects mobile and in-store transactions.
Continue reading for an in-depth comparison of Square and Lightspeed.
At a Glance: Square vs. Lightspeed
*On some goods, interest-free payment options are available.
Overall, Square and Lightspeed are two of the most well-liked and well-reviewed POS systems we’ve seen. Explore some of the “Best of” lists in the drop-down to find them both listed:
POS (Point of Sale) Systems POS systems that are the best The most effective multichannel POS The Most Effective Retail Management Software Best POS System for RestaurantsBest POS System for Vape Shops Best Inventory Management POS Best iPad Point of Sale Cloud POS with the Most User-Friendly Interface
When Should You Use Square?
Square’s free POS system makes it a better alternative for budget-conscious companies, seasonal enterprises, and businesses that only make sporadic sales, such as craftspeople selling at local farmers markets or artists selling at conferences.
Square is also a better option for appointment-based enterprises than Lightspeed. Square Appointments is also free and works with your web business, mobile app, and point-of-sale system. We prefer Square over Lightspeed if you own a beauty salon, spa, gym, repair shop, or other service-oriented company.
Square will serve you better if you know your company will expand and you’d like to have all of your tools function together natively. All payment choices are available with the free account, as well as a comprehensive set of inventory, sales, customer, and personnel management capabilities. To get you started, Square even provides a free magstripe credit card reader. As a result, you may begin selling for free.
Square, on the other hand, provides premium options to assist with loyalty programs, marketing, and even payroll if your business grows. It also offers financial services, such as checking accounts and business loans. Square also has over a hundred third-party connectors.
When Should You Use Lightspeed?
Although Square has a lot to offer, its inventory and statistics aren’t as detailed as Lightspeed’s. If you sell alcohol, tobacco, e-cigarettes, or other age-restricted commodities, Lightspeed is the better of the two. Lightspeed also allows you to generate bar tabs with prepayment, making it a better solution for bars.
It’s also the preferable option if you need to keep track of ingredients. It contains over 3,000 built-in product catalogs for restocking and locating new items, as well as more options for product customizations.
While Square and Lightspeed both provide payment processing, Lightspeed additionally allows you to choose a separate merchant account. (It could cost more to put it in place.) If you already have a merchant account and don’t want to change, Lightspeed should be able to help you out where Square can’t. You may be able to obtain better transaction rates elsewhere than with Square or even Lightspeed.
Lightspeed is particularly suitable for high-risk enterprises like as cannabis and vape shops, thanks to the opportunity to pick a separate merchant account.
Square is the most affordable option.
*Paid POS subscribers get lower rates.
Takeaway: For cost, Square is the best option. Overall, it is less expensive because of the free POS system and the same in-person transaction rates. Despite the greater percentage, its keyed-in rate is superior if you execute a large number of little, keyed-in transactions.
Why Is Square the Best Price Calculator?
To begin, Square’s whole POS system is free; you just have to pay for premium features. Lightspeed, on the other hand, only provides a 14-day trial. In addition, the first $250 in chargeback costs each month is waived by Square. This may be all you need for a small company.
Square’s free POS has the same in-person payment processing costs as Lightspeed. Square’s flat-rate payment processing costs reduce to 2.5 percent + 10 cents if you subscribe to one of the premium POS options.
While Square’s keyed-in and online rates seem to be more costly at first glance, they feature lower cents per transaction costs (10-15 cents against 30 cents for Lightspeed), which is great for smaller transactions. For most transactions under $20, even the keyed-in rates are preferable.
Furthermore, Square charges a very low price for ACH and e-checks. Lightspeed does not have any rates displayed. These types of payments may need the use of a third-party processor.
Square’s hardware is likewise more inexpensive, ranging from the free swipe card reader to the $49 chip and tap reader to the $299 POS systems. It offers a wider choice of POS hardware than Lightspeed, with complete systems starting at $1,343, as well as various alternatives in the $500-$650 range.
When Should You Use Lightspeed?
While Square is the cheapest choice overall, if your typical sales are above $20, Lightspeed may be a better price. This is due to the fact that Lightspeed’s keyed-in % is much lower than Square’s. While there is still a monthly price to consider, if you make enough sales, the savings may be sufficient to cover the cost of the membership.
A third-party processor may be able to offer you lower payment processing rates, but Square does not enable you to do so. Lightspeed is one among them. As a result, if you sell in large quantities, Lightspeed may be the most cost-effective option.
Holding Funds Complaints
Users have extremely few complaints about cash being kept or accounts being cancelled at Lightspeed. Square, on the other hand, has received several complaints regarding its hold policy, retained cash, and account deactivation. Keep in mind that Square is one of the industry’s major POS/payment processors.
Square is the best option for register functionality.
Takeaway: While both systems are capable, Square’s pricing point and feature set make it the superior register. It also has a far more simplified UI than Lightspeed, making it an excellent choice for organizations who value quick checkout times and simple staff training.
Why Do Square Register Functions Work Best?
Because it provides so much for such a low price, Square routinely ranks first in our POS hardware evaluations. Square has a free version that covers the essentials and is simple to use. The free edition includes an online shop (although one with limited functionality), a virtual terminal, customer profiles and segmentation, gift card administration, refund tools, and more.
Square’s premium edition provides more features, such as staff scheduling, although it is still less expensive than Lightspeed. It has a more basic inventory than Lightspeed, but we’ll get into it in the following part.
Employees and consumers alike will find Square to be simple to use. (Image courtesy of Square)
When Should You Use Lightspeed?
Square lacks age verification features, which are included in all Lightspeed plans. This makes it ideal for sales of age-restricted items in liquor stores, smoke shops, and vape shops.
It’s also the preferable option for managing several stores. Set various pricing for different locations, manage inventory across all sites, and define employee rights whether they work in a single shop or move between many locations using Lightspeed.
Lightspeed, unlike Square, can also manage work orders. This makes it a better match for stores such as bike shops that provide maintenance or boutiques that do tailoring. Special orders, such as ordering a bespoke component or a hard-to-find item, may be handled at the register. Finally, the Lightspeed register can monitor warranties for particular purchases, allowing you to determine whether a customer’s purchase is still covered by the manufacturer’s guarantee at a look.
Lightspeed, like Square, synchronizes online and in-person purchases. (Photo courtesy of Lightspeed)
Lightspeed is the best option for inventory.
Takeaway: While Square provides features to meet the most common inventory management requirements, Lightspeed is the more powerful solution.
Why Is Lightspeed the Best Option for Inventory Management?
In our selection of the finest POS inventory systems, Lightspeed comes in first. It’s the most powerful, with over 10,000 SKUs, variations, bundles, and kits, among other things. It can keep track of inventories by unit or volume, which is useful when dealing with groceries or selling products by the item or case. Its 40+ reports provide in-depth research.
It comes with low-inventory notifications and vendor management, so you can submit purchase orders rapidly. The system already has over 3,000 catalogs loaded, making it simple to update stock and find new things. Lightspeed’s Supplier Network, on the other hand, stands apart. It not only makes it simple for you to locate and purchase items as a retailer, but it also allows you to apply to have your products housed in the catalog if you handle B2B sales.
You may search numerous supplier catalogs using Lightspeed Supplier Market. (Photo courtesy of Lightspeed)
When Should You Use Square?
Square isn’t a slouch when it comes to inventory management, but its capabilities aren’t as comprehensive. It doesn’t, for example, have kitting capabilities. It allows you to bulk upload and change goods, issue low-stock alerts, and manage suppliers, but not to the same extent as Lightspeed. The system is, however, free, or you can upgrade for $60 a month (still less than Lightspeed), so budget-conscious users might consider it.
For the most part, Square’s inventory system works effectively for small firms. (Image courtesy of Square)
Best for Restaurants & Food: Lightspeed
Takeaway: Both are excellent restaurant POS systems, including menu customization, online ordering, touchless and kiosk ordering, and kitchen display synchronization. Both offer table management and are ideal for food carts or full-service restaurants. Lightspeed, on the other hand, offers more robust options for managing numerous locations, thorough ingredient monitoring, bar functions, and interaction with hotel property management software (PMS).
Why Restaurants Should Use Lightspeed
Lightspeed makes it simple to accept unique orders and track them down to the individual ingredients, allowing you to keep track of all your components rather than just the final dish. Open tabs may be kept, transferred from bar to table or between servers, and payments can be grouped or divided as required. Lightspeed’s age-verification tools ensure that you comply with state and municipal regulations if you sell alcohol. You can remind your employees to highlight those things that go well together using Lightspeed’s upsell reminders.
Lightspeed is preferable for bigger enterprises and fast service restaurants because of its stronger inventory and reporting. Lightspeed also interfaces with hotel PMS so that you may handle room service if you own a hotel. To discover more, read our entire Lightspeed Restaurant review.
Lightspeed can grow with your company as it grows, from a single sandwich shop to a chain. (Photo courtesy of Lightspeed)
When Should You Use Square?
Once again, cost is a major factor. Square’s user-friendly interface also makes it ideal for high-volume businesses such as cafés, pizzerias, and bakeries. Because of its portability, it’s ideal for food trucks and other mobile sellers.
Square’s basic (but still capable) restaurant POS system is free, which makes it a wonderful solution for individuals who don’t need all the bells and whistles. To discover more, read our Square for Restaurants review in its entirety.
Square is simple to set up and utilize in restaurants. (Image courtesy of Square)
Best for Appointments & Services: Square
Takeaway: For most service-based organizations, Square for Appointments is the best option. Lightspeed, on the other hand, offers a one-of-a-kind system designed exclusively for golf courses.
Why Are Square Appointments the Best?
For appointment-based enterprises, Square provides a customized version in both countertop and mobile POS. Square Appointments allows you to schedule customers online or via the app, send automatic SMS reminders, manage recurring appointments, and even impose no-show or cancellation fines. People may be checked out at the counter (or through the app) or an invoice can be sent to them.
Notes for customer profiles and team management are included with the program. You’ll also get access to Square’s robust POS system. For the finest POS for salons and spas, we recommend Square. In our Square Appointments review, we go through the price and features in detail.
Customers may arrange meetings with Square Appointments through a variety of means. (Image courtesy of Square)
When Should You Use Lightspeed?
In this sector, Lightspeed cannot compete with Square. It’s not supposed to work that way. The closest thing you’ll get is the online store’s appointment feature, which allows consumers to schedule services or purchases. It will send reminders and confirmations.
Lightspeed Golf should be considered if you have a golf course or other recreational activity based on that concept. This allows you to organize and schedule tee times for up to 54 holes and a variety of different game formats. Lightspeed also enables you to track your consumers from the golf course to the restaurant, allowing you to keep track of everything in one place. If you’re in charge of a golf course or any comparable business, Lightspeed is a superior option.
Lightspeed is ideal for golf course management. (Photo courtesy of Lightspeed)
Best for Ecommerce & Multichannel Sales: Lightspeed
Takeaway: When it comes to ecommerce, Lightspeed beats out Square. Its functionality is significantly more robust, but it comes at a larger cost.
Why Is Lightspeed the Best Ecommerce Option?
Lightspeed has 50 different themes for creating an online shop, as well as CRM, SEO, and marketing capabilities. It interacts with shipping providers like EasyPost and ShipStation and includes sophisticated shipping capabilities for managing and monitoring shipments. It also has 21 third-party integrations for local delivery.
Lightspeed is designed for worldwide sales and can be configured in 14 languages as well as several currencies. You may also program shipping prices for overseas destinations. These capabilities, when paired with Lightspeed’s advanced built-in SEO tools to assist in driving visitors to your online business, easily defeat Square.
Lightspeed, like Square, lets you sell on Facebook, Twitter, and Instagram.
Lightspeed synchronizes online, mobile, and in-store sales so you always know how much money you’ve made and how much inventory you’ve got. (Photo courtesy of Lightspeed)
When Should You Use Square?
Square’s online tools (Square Online) are available at no charge. Lightspeed’s ecommerce solution, on the other hand, starts at $99 per month for the Starter package. If you want to establish an online shop on your website, Square also provides buttons that you may add to it. Square also has a broader range of ecommerce connectors, including anything from delivery services to ecommerce solutions.
Overall, Square Online is built for online pickup, curbside delivery, and local delivery. Square’s capabilities are missing if you want to create a full-fledged internet business that can flourish independently from your brick and mortar company. For more information, see our Square Online review.
Square’s free online shop allows you to establish a webstore or sell via buttons on your website or social network. (Image courtesy of Square)
Square is the best option for mobile.
Takeaway: Square is the superior option for mobile in terms of quality, variety, and simplicity of use.
Why Is Square the Best Mobile Point-of-Sale App?
Square is at the top of our rankings for mobile point-of-sale apps. It’s an excellent alternative for selling crafts at a flea market or operating a mall booth because of its flexibility, simplicity of use, and low cost. It also works offline, capturing and storing transactions that will be synced to the cloud once you have internet access again.
Square’s app connects to the POS system, allowing you to take benefit of all of Square’s features no matter where you are. Overall, it’s a fantastic system, as seen by high user reviews in both the Google and Apple app stores.
Square is a free, feature-rich point-of-sale app. (Image courtesy of Google Play)
There is no iPhone version of Lightspeed Retail for iOS; it is only available for iPad. Lightspeed Restaurants, on the other hand, has an iPhone app. Square Restaurants, on the other hand, is only accessible on the iPad and not the iPhone, but Square for Retail is available on both the iPad and the iPhone.
When Should You Use Lightspeed?
The Lightspeed app is geared at restaurants, while Square’s mobile version is suitable for retail, appointments, and general use. Bar tabs and table management are among the features of Lightspeed’s mobile app. Additionally, Lightspeed offers a separate self-order kiosk software that allows any iPad to be used as a customer-facing ordering screen.
If you have more complicated inventory requirements, such as monitoring various modifiers, ingredients, or product waste, Lightspeed’s mobile app, like its POS, is ideal. It also has third-party payment processor integration. It also includes time monitoring for your employees.
Restaurants will benefit from Lightspeed’s app. (Image courtesy of Google Play)
Conclusion
Who wins in the competition between Square and Lightspeed is determined on what you need. For extremely tiny companies, those seeking for a free system, and most mobile firms, Square is obviously the finest POS solution. It takes care of the fundamentals of sales, inventory, and ecommerce. Plus, if the free version isn’t enough, there are a variety of reasonable premium editions and add-ons available to help it grow with you.
Lightspeed, on the other hand, provides additional payment processing options, a more detailed inventory system, and enhanced restaurant features. Although it is more costly, the benefits outweigh the cost.
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