Point of Sale Systems for Regional Retail: A Practical Comparison

Choosing a point of sale (POS) system is one of the more consequential technology decisions for retailers. Get it right and daily operations flow smoothly. Get it wrong and you’re dealing with frustration every single day.

I’ve helped several regional retailers evaluate POS options. Here’s what I’ve learned about which systems work for different situations.

The Main Options

Square

Best for: Small retailers, cafes, market sellers, service businesses, anyone wanting simplicity.

Cost: Free software, 1.6% transaction fee (card present). Hardware costs vary—basic setup under $100, full register setups $500-1500.

Strengths:

  • Easy to set up and use
  • Free software tier is genuinely functional
  • Good mobile and tablet experience
  • Integrated online store available
  • Solid inventory management for simple needs
  • Payments and POS integrated seamlessly

Limitations:

  • Transaction fees add up for high-volume businesses
  • Limited customisation
  • Inventory features basic for complex needs
  • Less robust for multi-location operations

Real-world feedback: A gift shop in Bendigo switched from an old cash register to Square and was running within an afternoon. “I couldn’t believe how easy it was.”

Lightspeed

Best for: Retailers with complex inventory, multi-location operations, restaurants.

Cost: $89-289/month plus transaction fees. Hardware additional.

Strengths:

  • Powerful inventory management
  • Strong multi-location support
  • Good for businesses with complex products (variants, serials, etc.)
  • Solid reporting and analytics
  • Restaurant-specific version available

Limitations:

  • More expensive
  • Steeper learning curve
  • Can be overkill for simple retail
  • Contracts can lock you in

Real-world feedback: A outdoor equipment retailer in Geelong uses Lightspeed for complex inventory—hundreds of products with multiple sizes and colours. “We tried Square first but outgrew it within six months.”

Shopify POS

Best for: Retailers who want tight integration with online sales.

Cost: $89/month for full POS features (part of Shopify plan). Hardware additional.

Strengths:

  • Seamless online/offline integration
  • Unified inventory across channels
  • Strong e-commerce platform
  • Good customer management

Limitations:

  • Primarily designed for Shopify users
  • Less robust for pure brick-and-mortar
  • Transaction fees unless using Shopify Payments

Real-world feedback: A Ballarat clothing boutique uses Shopify POS. “Same inventory system for our shop and website. When something sells online, shop stock updates automatically. No more overselling.”

Tyro + Various Integrations

Best for: Businesses wanting Australian-focused payment processing.

Tyro is primarily a payment terminal provider rather than full POS, but they integrate with various software options. Worth considering if you want to separate payment processing from POS software.

Strengths:

  • Australian company, local support
  • Good rates for qualifying businesses
  • Integrates with Xero and various POS systems

Hike POS

Best for: Budget-conscious retailers wanting more features than Square.

Cost: $69-99/month

Strengths:

  • Affordable
  • Good feature set for the price
  • Works offline
  • Australian company

Limitations:

  • Less polished than major players
  • Smaller ecosystem of integrations

Key Considerations for Regional Retailers

Offline Capability

Internet outages happen in regional areas. How does your POS handle it?

Square: Works offline for card payments (transactions process later). Inventory syncs when connection returns.

Lightspeed: Has offline mode but with limitations.

Shopify POS: Offline mode available but limited.

If your internet is unreliable, test offline capability before committing.

Transaction Fees vs Monthly Fees

Different pricing models suit different businesses:

Low volume: Transaction-based (Square) often cheaper. No monthly fee, only pay percentage on sales.

High volume: Monthly subscription often cheaper. Flat fee regardless of sales volume.

Example: $10,000 monthly card sales on Square = $160 in fees. A system with $99/month plus 1% fees = $199 total. But at $30,000 monthly sales, Square = $480 vs subscription = $399.

Do the math for your specific situation.

Integration with Accounting

Whatever you choose, ensure it talks to your accounting software.

Square: Integrates with Xero and MYOB Lightspeed: Integrates with Xero, MYOB, QuickBooks Shopify: Integrates with Xero, MYOB, QuickBooks

Manual data entry between POS and accounting is a time sink you don’t need.

Hardware Costs

Don’t forget hardware in your budgeting:

  • iPad/tablet: $500-800
  • Card reader: $50-200
  • Cash drawer: $100-300
  • Receipt printer: $200-400
  • Barcode scanner: $100-300

Some providers offer hardware bundles. Calculate total cost of ownership, not just monthly fees.

Making the Decision

For most small regional retailers, I suggest:

  1. Start with Square if you’re new to POS systems, have simple inventory, or want minimal upfront cost.

  2. Consider Lightspeed if you have complex inventory needs, multiple locations, or expect significant growth.

  3. Choose Shopify POS if online sales are significant and you want unified systems.

  4. Look at Hike if budget is primary concern but you need more than Square offers.

Trial periods are your friend. Most systems offer free trials—use them. Actually run your business on the trial, don’t just click around the demo.

And talk to other local retailers using different systems. Real-world experience beats marketing materials every time.

Business Victoria offers digital adaptation grants that can help fund POS system upgrades for small retailers.