What is a Point of Sale System Square?
A Point of Sale System Square refers to Square’s point-of-sale platform, which combines payment processing with tools for managing sales, products, inventory, customers and business reporting.
In Australia, Square Point of Sale can be used by businesses to accept in-person payments through compatible Square hardware or supported mobile devices, while Square for Retail adds features designed specifically for retail businesses. Square also connects in-person selling with online commerce, allowing businesses to manage sales and inventory across different channels.
In simple terms, Square POS gives a business one system for taking payments and managing everyday sales activity.
Quick Facts About Square POS
-
Type: Cloud-based point-of-sale and payment platform
-
Suitable for: Retailers, hospitality businesses, service businesses and other sellers
-
Payments: Cards, contactless payments and other supported payment methods
-
Hardware: Square Reader, Square Terminal, Square Register and other compatible devices
-
Inventory: Product catalogue and stock-management tools
-
Reporting: Sales analytics and business reporting
-
Online selling: Can connect with Square Online
-
Integrations: Supports third-party applications and business software
-
Australian pricing: Free Square POS software is available, with transaction fees applying when payments are processed.
How does the Square Point of Sale system work?
The basic process is straightforward.
A business creates a Square account and sets up its products, services or catalogue. The business can then connect compatible Square hardware or use supported Tap to Pay functionality.
When a customer makes a purchase, the sale is recorded through Square and the payment is processed.
The system can then provide information about the transaction, sales performance and, depending on the plan and setup, inventory and customer activity.
For a retail business, this means the POS can become much more than a card machine. It can form part of the wider system used to manage products, stock and sales.
What can Square Point of Sale do?
Accept Payments
Square supports major card payments and contactless payment methods, including Apple Pay and Google Pay through compatible hardware.
Manage Products
Businesses can create product catalogues, organise items into categories and manage product variations such as colours and sizes.
Track Inventory
Square provides inventory tools that can help businesses monitor stock and receive low-stock alerts. More advanced inventory functionality is available through Square for Retail Plus.
View Sales Reports
Square Dashboard provides sales information and analytics that can help business owners understand performance across their operations.
Process Refunds
Businesses can process refunds through the POS system or Square Dashboard, including itemised refunds where supported.
Sell Gift Cards
Square supports digital and physical gift cards that can be sold and redeemed through its system.
Connect Online and Offline Sales
Square can connect point-of-sale activity with Square Online, helping businesses sell in person and online while keeping sales and inventory connected.
What Square POS hardware is available?
Square offers several hardware options depending on how a business operates.
Square Reader
The Square Reader is a compact option for accepting payments with a compatible device.
It can be useful for small businesses, market stalls, mobile sellers and businesses that do not need a large permanent checkout.
Square Terminal
Square Terminal combines payment acceptance with a built-in screen and receipt printing, creating a more complete countertop solution. Square currently lists the Australian Terminal at $329, subject to its current pricing and conditions.
Square Register
Square Register is designed as a more comprehensive countertop POS system with dedicated screens for the seller and customer. Square currently lists the second-generation Australian model at $1,099, with instalment options available.
Square Handheld
For businesses that need to move around the premises, Square Handheld provides a portable POS option for taking orders, accepting payments and managing other POS activities.
How much does Square Point of Sale cost in Australia?
Square's standard Point of Sale software is currently available for $0 per month, with businesses paying processing fees when they accept payments. Square currently lists a 1.6% per tap or insert rate for eligible in-person card transactions, while hardware is available separately.
For businesses that need more advanced retail functionality, Square for Retail currently offers:
-
Free: $0 per month plus processing fees
-
Plus: $109 per month per location plus processing fees
-
Premium: Custom pricing for eligible businesses
The Plus plan adds features such as advanced inventory, barcode label printing, stocktakes, item bundling, purchase orders and vendor management.
Pricing and processing fees can change, so businesses should always check Square's current Australian pricing before making a purchasing decision.
Is Square POS free?
The standard Square Point of Sale software has a free option.
That does not mean payments are completely free. Square charges processing fees when customers make payments through the platform.
Hardware is also purchased separately unless a particular promotion or arrangement says otherwise.
For a small business starting out, the free software option can make Square attractive because there is no standard monthly software fee for the basic POS.
Who is Square Point of Sale suitable for?
Small Retail Businesses
Boutiques, gift shops, homewares stores and independent retailers can use Square to process sales and manage product information.
Market and Pop-Up Sellers
A compact reader or mobile payment setup can be useful for businesses selling at markets, exhibitions and temporary events.
Cafés and Restaurants
Square offers dedicated restaurant POS functionality, including plans designed around hospitality operations.
Service Businesses
Businesses providing appointments or services can use Square's broader ecosystem of payment and business-management tools.
Growing Retailers
Businesses with larger catalogues may benefit from Square for Retail's more advanced stock and reporting capabilities.
What are the benefits of Square POS?
Simple Setup
Square is designed to be relatively straightforward to set up, with online registration and hardware designed to work with the POS software.
Flexible Hardware
Businesses can choose between compact readers, terminals, registers and mobile solutions.
Inventory Integration
Sales and inventory can be connected, helping businesses maintain a clearer view of stock.
Online and In-Person Selling
Businesses can connect physical retail with online selling through Square's ecosystem.
Business Reporting
Sales information can be accessed through Square Dashboard, helping owners monitor performance.
Scalable Options
A small business can start with the basic system and add more advanced features as its requirements grow.
Square POS for Retail Businesses
For retailers, the value of Square goes beyond accepting card payments.
A retailer might use Square to:
- Build a product catalogue.
- Add product variations.
- Track stock.
- Process in-store purchases.
- Manage returns and exchanges.
- Monitor sales.
- Create purchase orders on eligible plans.
- Connect online and physical sales.
- Review business reports.
This can reduce the need to maintain several disconnected systems.
Square for Retail also provides tools such as barcode scanning, stocktakes and vendor management on appropriate plans.
Square POS and Inventory Management
Inventory management is one of the most useful aspects of a retail POS system.
Instead of recording every sale manually, the POS can connect sales activity with the product catalogue and stock levels.
For example, if a store sells a particular lamp, cushion or dining accessory, the system can associate that sale with the corresponding product.
Square offers standard inventory functionality with its retail offering, while more advanced stock-management tools are available through Square for Retail Plus.
For businesses with many products, this can become particularly valuable.
Square POS and Online Selling
A modern retailer may sell through several channels.
Customers might purchase:
- In a physical shop
- Through an online store
- From a social media channel
- Through a mobile selling environment
- Via remote invoices
Square can connect several of these activities within its wider ecosystem.
Square Online can synchronise with Square POS, while the platform also supports integrations with third-party applications such as Xero, MYOB, Wix and WooCommerce.
Is Square POS suitable for a small business?
Yes. The basic Square POS offering is specifically designed to provide businesses with a relatively accessible way to begin accepting payments without a mandatory monthly POS software subscription.
A small business could begin with a compatible smartphone and Tap to Pay or a compact Square Reader, then move to more comprehensive hardware as its operation grows.
This scalability is one of Square's major advantages for smaller businesses.
Square POS in 2026
Point-of-sale systems are increasingly expected to do more than simply process transactions.
In 2026, businesses are looking for systems that connect:
- Payments
- Inventory
- Online stores
- Customer information
- Reporting
- Staff management
- Marketing
- Business integrations
Square reflects this broader approach by combining payments with inventory, analytics, online selling, hardware and third-party integrations.
For retailers, this means the POS can become an important central point for day-to-day operations rather than simply the place where a customer taps their card.
Square Point of Sale System at a Glance
| Feature |
Square POS |
| Basic POS software |
Free option available |
| In-person card processing |
1.6% per tap or insert for eligible Australian sellers |
| Hardware |
Reader, Terminal, Register and Handheld options |
| Inventory |
Available |
| Advanced retail inventory |
Available on Retail Plus |
| Online selling |
Square Online integration |
| Reporting |
Available |
| Gift cards |
Available |
| Invoices |
Available |
| Third-party integrations |
Available |
| Contracts |
No long-term contract required for standard Square POS |
Current Australian pricing and features are subject to Square's terms and may change over time.
Frequently Asked Questions About Point of Sale System Square
What is Square POS used for?
Square POS is used to accept payments, record sales and manage various aspects of business operations. Depending on the plan, it can also manage inventory, reporting, customers, online sales and other business functions.
Is Square POS free?
Yes, Square offers a free POS software option. Payment processing fees apply when you process transactions, and hardware is purchased separately.
Does Square POS work without a Square terminal?
Yes. Square says businesses can use supported Tap to Pay functionality on compatible iPhone or Android devices, meaning dedicated hardware is not always required to begin accepting payments.
Does Square POS manage inventory?
Yes. Square provides inventory-management tools, with more advanced functionality available through Square for Retail Plus.
Can Square POS connect to an online shop?
Yes. Square POS can connect with Square Online, allowing businesses to sell online and in person through the Square ecosystem.
Is Square POS good for retail?
Square can be a strong option for small and growing retailers, particularly those wanting payments, product management, inventory and reporting within one ecosystem.
Does Square POS accept contactless payments?
Yes. Compatible Square hardware supports contactless payments, including Apple Pay and Google Pay.
The Finishing Touch
A Point of Sale System Square is more than a way to accept card payments. It can provide a connected system for taking payments, managing products, monitoring stock, analysing sales and linking physical retail with online commerce.
For a small business, the free POS option provides an accessible starting point. For growing retailers, Square for Retail adds more sophisticated inventory and operational tools.
The best choice ultimately depends on the size of your business, sales channels, inventory requirements, hardware preferences and the features you need every day.
Disclaimer: Square and its products are mentioned for informational and descriptive purposes. House of Isabella Australia is not affiliated with, endorsed by, or associated with Square. Product names, pricing, transaction fees and features may change; always check the provider's current Australian information before making a purchasing or business decision.