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Top 5 Free POS Software For Start-ups

September 01, 2024
Written and researched by experts at AvadaLearn more about our methodology

By Sam Nguyen

CEO Avada Commerce

This article presents our top five picks for the best free POS systems, tailored specifically for small businesses and start-ups.

Key Takeaways

  • Shopify POS: Best for small retailers venturing into in-person sales for the first time.
  • Square POS: Best for selling at pop-up shops, trade fairs, and local markets
  • Toast: Best for restaurant start-ups.
  • Paypal Zettle: Best for solopreneurs using Paypal.
  • Helcim: Best for growing businesses.

Decoding the ‘Free’ Aspect of POS Systems

The Misconception of “Free”

The term ‘free’ often brings to mind a product or service provided without any charges. However, in the context of POS systems, ‘free’ might not always mean completely without cost. A POS provider often uses this term as a marketing strategy to draw potential users, but it’s important to understand what it really means behind the scenes.

Potential Hidden Costs

While the software itself may be free to use, there could be other costs involved. These may include charges for premium features, transaction fees, costs for hardware or equipment required to run the system, or even support and maintenance fees. It’s vital for businesses to investigate thoroughly to uncover any such hidden costs.

So, What Does “Free” Actually Mean?

Truly free POS systems are those that offer services without any hidden charges. They may have limitations compared to paid versions but could still offer valuable features for small businesses or startups.

5 Best Free POS Softwares For Start-ups

These are the top POS software you can use for free. They offer a user-friendly experience, and enable your business to handle essential tasks effectively.

Shopify POS

Shopify POS takes the top spot on this list as it offers a free point of sale solution, particularly for those who favor running the software on their phone and using Shopify Payment as their primary payment gateway.

Pricing

Pros and Cons

Pros Cons
  • Scalablity up to 1,000 locations
  • In-house payment processor with no transaction fees
  • Multi-location and multi-channel management features
  • Ability to integrate with apps to enhance functionality
  • Customization options
  • Mobile POS
  • Subscription to a Shopify plan is required
  • Limited offline mode

What does this free POS software stand out for?

In-house payment processor

Shopify Payments serves as the default payment gateway, enabling merchants to process transactions smoothly. When you use Shopify POS, you’re automatically equipped to accept major payment methods with Shopify Payments. Additionally, merchants can take advantage of free transaction fees, which is particularly beneficial for small businesses and start-ups.

Mobile POS on Android and iOS

The Shopify POS app can be downloaded on both Android and iOS devices, allowing you to transform your own phones or tablets into a point-of-sale system. This means you can accept payments on the go without the need to purchase additional hardware. This feature is especially valuable for small businesses and individual retailers who sell at trade shows, pop-up shops, or outdoor markets.

When to upgrade

When your business expands, and you have a large number of staff members or regularly sell a significant number of products at your retail locations, and you want to provide your customers with an omnichannel experience as well as access advanced reports, it may be worth considering an upgrade to Shopify POS Pro.

Square for Retail

Square for Retail is an excellent choice as it allows you to establish and operate your physical store without any initial costs.

Pricing

  • Software fees: $0/month
  • Hardware fees: From $0 for a Reader for magstripe to $1,389 for a Station kit
  • Processing fees: 2.6% + 10¢

Pros and cons

Pros Cons
  • Free software with a card reader included
  • Offline functions
  • Connect to online store
  • Mobile POS
  • Omnichannel capability
  • Multi-location inventory management
  • Marketing features are not included
  • Limited customer support
  • Occasional funds holding

What does this free POS software stand out for?

Mobility with free hardware

When you sign up for Square, you will receive a free magstripe card reader at no cost. This card reader is designed to assist you with your mobile point-of-sale. Furthermore, the Square POS app supports Tap to Pay on Android and iPhone devices, enabling you to accept contactless payments using your already-have device. This feature is particularly beneficial for merchants who sell at local markets, pop-up shops, and trade markets, as it allows them to process payments from anywhere.

In-store pick-up and delivery

With Square’s free plan, you can provide your customers with an omnichannel experience, giving them the option to either pick up items in person or have them shipped. This can increase the overall customer experience at your stores.

When to upgrade

In order to access advanced inventory management, employee management features across multiple locations, and receive stock alerts and in-depth reports, you need to upgrade your plan to Square Plus.

Toast

With its inclusive hardware provided in the free Pay-as-you-go plan, Toast undoubtedly stands out as one of the top free POS options available in the market.

Pricing

  • Software fees: $0/month
  • Hardware fees: From $0 to $1,009
  • Processing fees: 2.99% + 15¢

Pros and cons

Pros Cons
  • Free software with hardware and payment processor included
  • Flexible payment
  • Mobile POS
  • Features are designed for restaurant industry
  • High transaction fees
  • Two-year contract length

What does this free POS software stand out for?

Hardware included

Toast offers a Pay-as-you-go plan that allows you to start and run your business without any upfront costs. You can choose from a Handheld Kit, Countertop Kit, or Guest Self-Service Kit. These hardware accessories are spill-proof, dust-proof, and industry-grade quality. It’s important to note that you own the hardware, and the payment processing fee covers all your costs.

Features designed for the restaurant industry

Toast offers a comprehensive set of features specifically tailored to meet the needs of the food and drink industry. With Toast, you will have everything necessary to effectively manage your staff, handle inventory, create menus, take orders, prepare the kitchen, and deliver an exceptional dining experience for your customers. Whether starting with a food truck or a casual dining venue, Toast can be a free POS worth considering.

When to upgrade

If you notice consistent growth in your monthly sales from both online and dine-in customers, it might be beneficial to upgrade to a paid plan with Toast. By doing so, you can take advantage of lower transaction fees and potentially save on costs.

Paypal Zettle

If you already use PayPal as a payment method for your physical store, PayPal Zettle is an excellent free POS option to consider.

Pricing

  • Software fees: Free
  • Hardware fees: From $29 to $199
  • Processing fees: 2.29% + 9¢

    Pros and cons

Pros Cons
  • Ecommerce and accounting integrations
  • Mobile POS
  • International payment process capability
  • Customization
  • Multi-location and multi-channel inventory management
  • No offline mode
  • Limited customer suppMust use PayPal as your payment gatewayort

What does this free POS software stand out for?

Paypal Zettle is directly linked to your PayPal account, offering a simple, convenient, and reliable payment experience. It enables you to accept payments from popular credit and debit card brands like Visa, Mastercard, American Express, as well as digital wallets such as Venmo, Apple Pay, Google Pay, and more. Additionally, it allows you to accept payments through cards, gift cards, and quick response (QR) codes. This versatility makes Paypal Zettle an excellent choice for solopreneurs, hobbyists, and other small-scale businesses.

Ecommerce and accounting integrations

Paypal Zettle offers integration with several popular ecommerce platforms like BigCommerce and WooCommerce, as well as accounting tools like Quickbooks. This integration helps you save time by automatically synchronizing your sales and payment data with your preferred accounting platform. As a result, you can easily track, download, and manage your business performance efficiently.

When to upgrade

Zettle does not offer an upgrade version, but you can enhance its functionality by integrating it with third-party apps. If you prefer using PayPal for payment processing but find that Zettle doesn’t fully meet your needs, consider other options that can provide the desired features and capabilities.

Helcim

Helcim earns its place on this list by offering a free POS software packed with all the vital features required for smooth and effective operations at a brick-and-mortar store.

Pricing

  • Software fees: Free
  • Hardware fees: From $109 to $349
  • Processing fees: 1.86% + 8¢ (average)

Pros and cons

Pros Cons
  • Mobile POS
  • Low processing fees
  • Unlimited users
  • Multi-channel and multi-location inventory management
  • Smart reporting
  • Limited integrations
  • Lack of loyalty management integration

What does this free POS software stand out for?

Low processing fees

Helcim offers essential features for small businesses to accept payments both online and offline. What sets Helcim apart is its adoption of interchange-plus payment processing fees, offering transparency and potentially lower fees compared to other POS providers that only offer flat-rate payment processing.

Multi-location inventory management with unlimited users

Helcim enables you to efficiently manage all your locations and sales channels through a synchronized platform. With Helcim, your inventory remains accurate and up-to-date across various devices and locations. Moreover, you can create as many users as necessary as your business expands, at no extra cost, and easily manage your staff by assigning roles and permissions to ensure smooth operations.

When to upgrade

It’s worth mentioning that there are no available upgrade options for Helcim. The POS integration is quite limited, which may lead users to seek additional third-party apps to manage a growing business effectively.

Our Methodology

We compiled a list of reliable POS software options that offer zero or minimal upfront costs. We focused on comparing the quality of features included in each free plan, along with standout features like mobile POS, free loyalty programs, online ordering capabilities, and robust inventory management. Furthermore, considered whether the POS offered industry-specific features, like restaurants, for example.

To ensure accuracy, we have tested out multiple free POS software and thoroughly examined recent reviews from real users on G2 and Capterra before making the decision on the best free POS software available.

Top 5 Free Point-of-sale: FAQs

When POS software is offered for free, the POS company usually makes money through alternative ways. While some companies impose limitations on the free version to encourage users to upgrade to a paid version, they also earn money through payment processing fees, credit card fees, hardware sales, or additional services such as training and customer support.

No, it is not necessary to always choose a free POS. You can opt for a free POS when you start your business. However, as your business grows, it may be beneficial to consider providers that offer the option to upgrade or integrate for additional functionality. This allows you to adapt to the evolving needs of your business and access more advanced features when necessary.

  • Advantages
    • Cost-effective: All the free POS mentioned above has very low upfront costs, making them an affordable option for small businesses with tight budgets.
    • Accessibility: Free POS systems are readily available and easily downloaded or accessed online, allowing businesses to get started quickly.
    • Basic functionality: Free POS software typically offers essential features such as inventory management, sales tracking, and payment processing, which can meet the needs of small businesses with simple requirements.
  • Disadvantages
    • Limited features: Free POS often has limitations on features and functionalities to fit your businesses’ evolving needs compared to paid plans.
    • Scalability: As your business expands to multiple locations, you may require more accounts or registers that may not be available with a free POS.

Bottom Line

If you require a basic POS, there are free options available that can fulfill your needs. The ones mentioned above are our recommended choices for POS software, and they are excellent for getting your business up and running.


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Sam Nguyen is the CEO and founder of Avada Commerce, an e-commerce solution provider headquartered in Singapore. He is an expert on the Shopify e-commerce platform for online stores and retail point-of-sale systems. Sam loves talking about e-commerce and he aims to help over a million online businesses grow and thrive.