When deciding on the best point of sale (POS) system for your small business, it’s important to think about which features match your current needs not only in the short-term, but also as your retail business grows.
Does the POS system have all of the features you’ll need at a price you can afford? Does it support payment processing? Does it offer compatible hardware like receipt printers, cash drawers, or barcode scanners? Is it easy enough to learn how the system works?
With so many things to consider, it’s easy to feel overwhelmed in your search for a new POS system—especially if you’re shopping around for the first time. This guide is here to help. We’ll walk through the most important features to think about, with guidance on how to choose the right POS system for your small business.
What is a POS system for a small business?
A point-of-sale (POS) system for a small business is a combination of hardware and software that enables the business to complete sales transactions efficiently. Beyond facilitating transactions, a POS system for a small business can help manage sales, inventory, and customer data. In other words, it’s the tool stack you’ll use to operate every aspect of a retail store.
6 best POS systems for small businesses in 2025
| POS system | Best for | Cost |
|---|---|---|
| Shopify POS | Online and in-person sales | From $5/mo (free trial available) |
| Square | Free POS system | Free plan available |
| Lightspeed | Cloud-based POS | From $89/mo |
| Toast | Food service businesses | Free plan available |
| Clover POS | Real-time sales tracking | From $15/mo |
| Revel Systems | Small businesses in the hospitality industry | From $99/mo |
1. Shopify POS
Scalable POS system perfect for growing businesses, supporting both online sales and in-person transactions with an expandable ecosystem of apps to enhance functionality as your business evolves.
With devices to fit small businesses of all kinds, Shopify POS lets you sell everywhere your customers are. The point of sale system integrates seamlessly with Shopify’s ecommerce platform so retailers can manage online and in-person sales from one intuitive dashboard.
Shopify POS can look up inventory, check customer profiles, and create tailored shopping experiences while interacting with customers. And it’s incredibly easy to learn, so you can get up and running quickly.
“Shopify unlocked the ability for our team—who, at the time, had very little technical skills or development expertise—to self-manage our own operations,” says Curtis Ulrich, Director of ecommerce at Aviator Nation.
Consider this point of sale system if your small business prioritizes features like:
- Omnichannel sales with unified inventory across online and in-store channels
- Cloud-based POS with real-time data synchronization
- Comprehensive inventory management with automated stock updates
- Unified customer profiles across all sales channels
- Advanced reporting and sales analytics
- Staff management with customizable permissions
- Intuitive, easy-to-learn checkout interface
- Built-in payment processing with competitive rates
- Customer relationship management (CRM)
- Marketing tools and automation
- Flexible hardware options for various business needs
- Contactless and mobile payment options
- App store with 8,000+ compatible third-party tools
- Multi-location support for expanding businesses
Pepper Palace migrated to Shopify’s unified ecommerce and POS platform, scaling from 40 stores to more than 100 in just five years.
Marketing director Corey Hnat calls Shopify’s one-click POS setup a “game-changer,” crediting it with enabling the team to open 60 new locations in a single year. The switch also supercharged data capture, growing customer profiles from 50,000 to 600,000, and powered stronger omnichannel marketing.
Payment processing fees: 5% + 0¢ USD for in-person payments, or 5% + 30¢ USD for online transactions on the Starter plan.
Monthly fee: Shopify POS plan required, which starts from $5 per month. There’s a free trial available.
2. Square POS
Basic standalone POS system for merchants just starting out.
Square offers a user-friendly interface and a range of features for small businesses. As a free POS system, Square offers basic sales tracking and reporting, plus the ability to accept payments without Wi-Fi. Services like payroll also integrate with the POS system. However, it lacks the comprehensive omnichannel capabilities and unified inventory management that Shopify POS provides.
Features include:
- Customer accounts
- Third-party integrations
- Inventory management
- Mobile access
- Shift scheduling
- Loyalty program
- Employee management
- Electronic payments
Payment processing fee: 2.6% + 15¢ per transaction for in-store payments where the card is present.
Monthly fee: Free plan available.
3. Lightspeed POS
POS system oriented toward restaurant operations.
Lightspeed's POS system offers inventory management features geared toward specific vertical markets. While it provides one-on-one onboarding, it doesn't offer the same level of seamless integration between online and in-person sales that you'll find with Shopify POS.
Features on offer with this small business POS system include:
- Inventory management
- Multi-store capabilities
- Sales reporting and analytics
- Workforce management
- Ecommerce integration
- Loyalty program
- Purchase order management
- Hardware integration
- Payment processing
Payment processing fee: 2.6% plus 10¢ per in-person transaction.
Monthly fee: From $89 per month.
4. Toast POS
Specialized POS system for food service businesses.
Toast is a POS system designed specifically for the food service industry, with features like menu management, tableside ordering, and kitchen display systems. It's primarily aimed at restaurants and cafés rather than retail businesses.
Toast offers sales management across multiple locations, allowing different menus and pricing at each location. Features like online ordering and customer loyalty programs may require additional fees depending on the plan.
Features include:
- Online and mobile ordering
- Inventory management
- Kitchen display system (KDS)
- Digital menu boards
- Gift cards management
- Employee management
- Tableside ordering
- POS loyalty programs
- Multi-location management
Payment processing fee: From 2.49% plus 15¢ per in-person transaction, if you pay for POS hardware upfront.
Monthly fee: From $0.
5. Clover POS
Basic POS system with sales tracking functionality.
Clover POS provides solutions for inventory tracking, customer management, and payment processing. While it offers compatible hardware, it doesn't provide the same unified commerce experience that integrates online and offline sales channels like Shopify POS.
On the back end, Fiserv, which owns Clover, processes payments. But you can also choose your own service provider.
Features on offer from Clover’s small business POS include:
- Mobile payments
- Employee management
- Inventory management
- CRM integration
- Multi-location support
- Security and fraud protection
- Ecommerce integration
- Barcode scanning
- Table layout and management
Payment processing fee: From 2.6% plus 10¢ per transaction.
Monthly fee: From $15 per month.
6. Revel Systems
POS system designed for hospitality businesses.
Revel Systems is a cloud-based POS system that offers basic functionalities like CRM, loyalty programs, and online ordering. It’s suitable for small businesses in the hospitality industry, including restaurants, bars, and cafés rather than retail stores.
Revel POS offers a digital outdoor display for drive-thrus, plus delivery tools like driver tracking and text message updates.
Features offered include:
- Quick service POS
- Self-service kiosk
- Inventory management
- Loyalty programs
- Payment processing
- Tableside ordering
- Split-bill functionality
- Customizable POS user permissions
- Ecommerce integration
Payment processing fee: 2.49% plus 15¢ per transaction.
Monthly fee: From $99 per month.
What features should a small business POS system have?
As you begin shortlisting potential POS systems for your small business, confirm each one offers these essential features.
Multiple payment methods
Debit and credit cards are no longer the only way to take payments from customers in-store. Statista reports that digital or mobile wallets are customers’ preferred retail payment method. So before committing to a new setup, check that it can accept the following payment methods from customers in-store:
- Magstripe cards, which let customers swipe their card in your card reader.
- Contactless payments, including credit or debit cards with a near-field communication (NFC) chip to allow tap to pay.
- Digital wallets like Apple Pay, Google Pay, and Shop App.
- Cash which you deposit into your cash register.
- Digital or physical gift cards.
- Card-not-present transactions, which happen when a shopper pays for an order without their card being physically present (e.g. over the phone).
Inventory management
When deciding which POS solution to use for your small business, consider the number of SKUs, product variants, and the complexity of your inventory. There’s not much use implementing a new POS system that only has the capacity to store one product variant if you’re selling several versions of the same product.
Good POS systems have robust inventory management features that automatically update your inventory levels as you sell, return, or exchange products in both physical and online settings. This can significantly reduce the time spent physically counting items and reconciling inventory, as well as lowering the likelihood of errors.
Also, check whether your shortlisted POS offers inventory reporting tools. Historical data can help you understand what sells, peak periods, and high-demand products to make smarter inventory decisions.
Shopify’s native inventory management system, for example, lets you:
- Sync inventory data to every sales channel, including social media storefronts and marketplaces.
- Initiate stock transfers between stores.
- Display real-time inventory levels on your online store for local shoppers.
- Generate inventory reports to find bestselling products.
- Raise purchase orders with suppliers when stock is running low.
Unified customer profiles
The best POS system connects to your physical and online store to help you gather, track, and manage customer data more easily. For example, with Shopify POS, you can create unified customer profiles to view their entire purchase history, including details like:
- Everything they’ve bought at your store or online
- How much they’ve spent to date
- The number of times they’ve ordered
- How long they’ve been a customer
- If they belong to a loyalty program
All of this customer data updates in real time and is located in one place, giving retail staff more context to better serve shoppers and build long-term customer relationships. You can also segment customer profiles to send personalized emails that keep shoppers engaged and increase repeat purchases.
"Having that kind of data capture available in stores allows us to build a unified customer profile," says Kevin Clarke, head of ecommerce at Sculpted by Aimee—a retailer that’s seen a 275% increase in email capture across all retail stores with Shopify. "We can then send notifications to customers through our app and make offers that are much more personalized."
💡 Pro tip: Encourage store staff to email carts they save at the end of their shift. This is an accessible way to recover abandoned store sales and attribute more revenue to your store, even if the transaction happened online.
Reporting dashboards
POS reporting dashboards should not only provide an overview of your business performance at a glance, but also allow you to view detailed insights to make more informed decisions. Whether you need an inventory report, sales report, cash flow report, or discount report, your small business’s POS system should provide those for you.
Look for a POS system that allows you to compile data collected at both your physical locations and online. Shopify Analytics, for example, provides a unified view of your business's performance, along with benchmarks to compare your store's performance against competitors.
Also, check whether your small business’s POS system integrates with other apps that measure store performance. Dor, for example, is a Shopify app that can monitor foot traffic. You’ll see how your store’s conversion rate is impacted by things like foot traffic, promotions, or the weather—insights you can use to make smarter decisions.
Staff management
You don’t always need a separate workforce management system that sits adjacent to your POS system. The best platforms have this functionality built-in, including staff management features like user permissions, employee time tracking, and rota scheduling.
With Shopify POS, for example, you can assign different roles and permissions and set boundaries on what store staff can do in your POS system without manager approval—like changing a product’s price or applying a custom discount to a sale.
It’s also helpful to have visibility on staff’s performance, like their average transaction values, median units per transaction, and daily sales inside your small business POS. Sales assistants with the lowest performance metrics should be offered more in-depth retail training.
POS hardware
Reliable POS hardware is essential to your business operations. It’s designed to help you sell anywhere, accept popular payment methods, and manage inventory more efficiently.
While you may not need every piece of POS hardware when you’re opening a retail store for the first time, a good starting setup includes:
- Barcode scanners
- Card readers
- Cash registers
💡 Pro tip: Looking to set up a new POS system on a tight budget? Tap to Pay lets you turn your mobile device into a card reader, so you can start selling instantly—no extra hardware required.
Omnichannel selling
The retail shopping experience is anything but linear. People are accustomed to switching between online and offline channels for any purchase they’re considering—and they’re willing to spend more for the luxury of doing so. One report found that omnichannel customers make purchases 70% more often than those who only shop in person.
Being able to unify your small business in an omnichannel POS system allows customers to shop how they want, where they want. That might mean:
- Displaying inventory levels on your ecommerce website for a nearby store.
- Allowing customers to redeem loyalty points they’ve earned online on in-store purchases.
- Helping customers place an order online and collect it in-store.
- Allowing shoppers to make an order in-store and have the product shipped directly to their home with local delivery.
- Enabling shoppers to return online-bought products in-store (and vice versa).
Shopify is the only platform to natively unify POS and ecommerce on the same platform. A leading independent research firm found Shopify POS retailers using this functionality benefit from a 22% lower total cost of ownership, an 8.9% uplift in their GMV, and 25% lower annual software subscription and maintenance costs on average.
How to choose a small business POS system
If you’re a small business owner who’s in the market for a new POS system, here’s how to shortlist POS vendors and choose the right option for your store.
Compare POS providers
The first step in choosing the best POS system is to compare different providers. There are many POS systems, and each has its unique strengths and weaknesses. But you need to find the one that suits your retail business model the best.
Here are some comparison pages to get you started:
- Shopify POS vs. Clover POS
- Shopify POS vs. Lightspeed POS
- Shopify POS vs. Square POS
- Shopify POS vs. Magento POS
- Shopify POS vs. QuickBooks POS
These comparisons will help you understand the differences in features, pricing, and usability among the most popular POS systems for smaller stores.
Decide which type of POS your small business needs
The kind of business you manage and the types of sales you make will help you determine which features your POS system needs to have. For example, a small business POS system that works well for a brick-and-mortar florist may not be as effective for an online beauty retailer running its first pop-up shop.
Consider the type of POS hardware that will meet your business needs. Popular options include:
- Retail POS systems are designed for brick-and-mortar stores, allowing you to accept in-person payments, manage inventory, and track sales.
- Mobile POS systems are portable systems that process payments on the go. They're similar to traditional retail POS systems but offer the flexibility to process payments anywhere, anytime. They're perfect for pop-up shops, events, and markets.
- Omnichannel POS systems are ideal for businesses that operate both online and offline. They provide a unified view of your sales and inventory and produce detailed reports to help you identify trends and opportunities faster.
Also, consider the user interface that your shortlisted vendors offer. Is it easy to create customer carts and customize the POS dashboard so that you can complete basic tasks quickly?
“The Shopify interface on desktop and POS is very straightforward and user-friendly,” says Kate Knecht, owner and operator of Tomlinson’s. “You don’t have to be super technically savvy to quickly ensure the right discounts are being applied.”
Review small business POS costs
For any business, the cost of a POS system will be a determining factor. It's essential to find a system that offers the features you need within your budget.
When reviewing costs, consider the following:
- POS software fees: These are usually monthly or annual fees, with different plan tiers and corresponding prices. Higher-tier plans usually come with more advanced features like detailed reporting and analytics.
- Hardware costs: These depend on the payment types you want to accept, the number of stores you have, and the overall functionality you need. For example, you can skip the investment in a receipt printer if customers are happy to receive their confirmation via email.
- Payment processing fees: Every time you process a sale, your payment processor charges a fee. This fee is usually charged per transaction and taken as a percentage of the overall transaction amount. The amount you pay may change depending on the type of credit card a customer uses.
💡 Pro tip: Shopify unifies customer, order, and inventory data into one business “brain”—no extra middleware or custom integrations required to sell online and in-person. It’s why retailers using Shopify POS report 16% lower ongoing costs and 89% lower annual third-party support costs, on average.
Check integrations
Although your POS system is the command center of your small business, there are some additional features you might need that the vendor doesn't offer out of the box.
Comb through your existing retail tech stack and shortlist the POS integrations your new system needs to have. The Shopify App Store, for example, has the following app integrations—many of which are compatible with the small business POS system:
- Accounting software
- Customer loyalty programs
- Email marketing systems
- Analytics platforms
- Feedback survey apps
As your small business grows, so do the tools you rely on to manage it. Checking that your shortlisted system offers these connections can save a lot of money in the long term since you won’t need to custom-code patchy middleware to fix gaps in their integration capabilities—or worse, switching POS systems further down the line.
Consider customization options
Different retailers have different requirements for their small business POS system. A fashion store with a popular loyalty program, for example, would need quick access to apply rewards on an in-store purchase. A home furnishing brand, on the other hand, might email carts for retail shoppers to complete larger orders at home.
Small businesses using Shopify’s POS system can speed up the checkout process with a customizable Smart Grid. Each tile represents a different function, which you can customize to get quick access to your most-used features, whether that’s:
- Applying discounts
- Viewing loyalty rewards
- Processing ship-to-home orders
- Sending email carts
- Viewing local pickup orders
“Thanks to the integration between Inveterate and Shopify, our retail teams can help customers redeem and earn their loyalty points with the simple click of a button on the POS tile, creating a frictionless checkout experience,” says Ryan Groh, head of ecommerce at BYLT Basics.
Try the best POS system for small businesses
Selecting the best POS system for a small business can be a daunting task—but it's a crucial one. A well-chosen POS solution will streamline your customer experience, make inventory management much easier, and ultimately increase sales.
With Shopify POS, you get essential POS features you need to sell in person, accept payments, and manage your store’s day-to-day—backed by the most powerful ecommerce platform available.
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POS for small businesses FAQ
What is the best POS for a small business?
Some of the top POS systems for small businesses include:
1. Shopify POS: Best for online and in-person sales
2. Square: Good free POS system
3. Lightspeed: Cloud-based POS software
4. Toast: Best for food service businesses
5. Clover POS: Offers real-time sales tracking
6. Revel Systems: Best for small businesses in the hospitality industry
How much does a POS system cost for a small business?
The cost of a POS system for small businesses typically ranges from $0 to $99 per month. Most providers also charge payment processing fees, which vary depending on the card network used.
What is the best free POS system for small businesses?
While Shopify doesn’t offer a free plan, it’s considered one of the best POS systems for small businesses with plans starting at just $5/month. A free trial is also available.
Do I need a POS system for my small business?
Yes, if your small business sells physical products, a POS system is essential. It helps process payments, track inventory, collect customer data, ring up sales, and generate business reports.
