Shopify POS vs Payflo POS: Choosing the Right Fit for Your Business

When you’re running a business, every decision impacts your operations, including how you handle payments. Whether you run a small boutique, a bustling café, or a retail chain, having the right point-of-sale (POS) system ensures smooth transactions and efficient operations. With so many options available, it can be overwhelming to choose one that fits your needs.

Shopify POS and Payflo POS are two systems that cater to different business models. Shopify POS focuses on blending online and offline sales seamlessly, making it a preferred choice for e-commerce-driven businesses. On the other hand, Payflo POS is built for simplicity, flexibility, and cost-efficiency, meeting the needs of businesses that focus primarily on in-store sales.

Understanding how these systems align with your business goals can save you from unnecessary expenses, downtime, or functionality gaps. This comparison will help clarify how Shopify POS and Payflo POS operate differently and which one is better suited to your operations.

What Is Shopify POS?

Shopify POS is a point-of-sale system created for businesses using Shopify’s e-commerce platform or looking to integrate their online and physical stores. It provides tools for processing payments, tracking inventory, and managing customer data. Shopify POS is popular among businesses with a strong online presence that want seamless omnichannel capabilities.

Key Features of Shopify POS

1. Online and Offline Integration: Syncs inventory, sales, and customer data between Shopify’s online platform and physical store locations.
2. Hardware Options: Provides Shopify-specific card readers, barcode scanners, and receipt printers.
3. Omnichannel Capabilities: Enables services like buy-online-pick-up-in-store (BOPIS) and in-store returns for online purchases.
4. Payment Processing: Supports Shopify Payments, credit cards, and third-party payment gateways, though external providers may incur extra fees.
5. Detailed Reporting: Tracks sales trends, customer purchase behaviours, and inventory data.

What Is Payflo POS?

Payflo POS is a user-friendly point-of-sale system designed for businesses needing efficient in-store transaction processing. It supports a wide range of payment methods, inventory tracking, and business insights. Payflo POS caters to small and medium-sized Australian businesses seeking scalability and cost efficiency.

Key Features of Payflo POS

1. Flexible Payment Options: Accepts debit, credit, and contactless payments at competitive rates.
2. Inventory Management: Provides real-time tracking of stock levels and sends low-stock notifications.
3. Customisation: Adapts to different industries, including retail, hospitality, and service businesses.
4. User-Friendly Interface: Simplifies staff training and speeds up checkout processes.
5. Reporting Tools: Offers detailed sales insights to assist with strategic decision-making.

Shopify POS vs Payflo POS: Key Differences

Both Shopify POS and Payflo POS are designed to facilitate in-store transactions, but their functionality, costs, and target audiences set them apart. Choosing between these systems requires a detailed understanding of their strengths and limitations. While Shopify POS is tailored for businesses seeking omnichannel solutions that integrate tightly with an online store, Payflo POS focuses on providing an efficient, flexible, and cost-effective solution for small to medium-sized businesses prioritising in-store operations.

Integration Capabilities

The ability of a POS system to integrate with other tools significantly impacts its usefulness. Shopify POS and Payflo POS differ in how they handle integration, making them suitable for different types of businesses.

• Shopify POS: Shopify POS is best for businesses already using Shopify’s e-commerce platform. It integrates seamlessly with Shopify’s ecosystem, providing synchronised data for inventory, sales, and customer management. For example, if a customer purchases a product online, Shopify POS will automatically update your physical store’s inventory. It also supports third-party integrations, such as accounting software like QuickBooks and marketing tools like Mailchimp. This makes Shopify POS ideal for retailers who want a unified online and in-store operation.
• Payflo POS: Payflo POS focuses on essential integrations for small to medium-sized businesses. It connects with popular accounting tools, such as MYOB and Xero, and payment gateways to ensure smooth financial management. While it doesn’t offer the deep e-commerce integration of Shopify POS, Payflo POS excels in keeping in-store operations simple and efficient. For example, a small boutique using Payflo POS can track in-store sales and sync them with their accounting software without needing complex additional integrations.

Payment Processing

The way each system handles payments also sets them apart, with Shopify POS leaning towards convenience for Shopify users and Payflo POS focusing on cost efficiency.

• Shopify POS: Shopify POS processes payments through Shopify Payments or third-party providers. Shopify Payments supports major debit and credit cards, contactless options like tap-to-pay, and even installment plans. However, using external providers comes with additional fees, which can increase overall transaction costs. For instance, a retailer using a non-Shopify payment gateway might pay up to 2% extra per transaction, adding to operational expenses.
• Payflo POS: Payflo POS offers cost-effective payment processing with highly competitive transaction rates. It supports various payment methods, including debit cards, credit cards, and digital wallets like Apple Pay and Google Pay. Businesses benefit from lower processing fees, helping them retain more revenue. For example, a small café using Payflo POS can reduce costs on every transaction, making it an attractive option for businesses that rely heavily on in-store payments.

Pricing and Fees

Pricing is a critical factor for businesses when selecting a POS system. Shopify POS and Payflo POS have different pricing structures that cater to distinct business needs.

• Shopify POS: Shopify POS is tied to Shopify’s e-commerce plans, meaning you’ll pay a subscription fee even if you’re only using the in-store features. The basic plan includes limited POS functionality, while advanced features, like in-depth reporting and staff management, require a more expensive plan. Additionally, using third-party payment gateways can lead to higher transaction fees, making Shopify POS a more costly option for businesses that don’t fully utilise its online capabilities.
• Payflo POS: Payflo POS provides flexible pricing plans with minimal ongoing costs. There are no hidden fees or additional charges for using external payment processors. This makes Payflo POS an affordable solution for businesses looking to control operating expenses. For example, a retail shop using Payflo POS can avoid the high subscription fees associated with Shopify while still accessing robust in-store functionality.

Hardware Options

The hardware requirements of a POS system can significantly affect its setup and operational costs.

• Shopify POS: Shopify POS requires Shopify-specific hardware, such as its card readers, barcode scanners, and receipt printers. While this ensures compatibility, it adds to the initial setup cost. For example, a business setting up Shopify POS may spend hundreds of dollars purchasing proprietary equipment, which could be a barrier for small businesses on a tight budget.
• Payflo POS: Payflo POS offers more flexibility by supporting a wide range of hardware options. Businesses can use existing equipment, such as generic barcode scanners or receipt printers, or opt for cost-effective alternatives. This flexibility makes Payflo POS more accessible for businesses that want to minimise upfront investment. For example, a small bakery using Payflo POS can utilise their current hardware, reducing startup costs significantly.

Suitability for Business Types

Shopify POS and Payflo POS cater to different business types, based on their features and focus areas.

• Shopify POS: Shopify POS is best suited for businesses that prioritise omnichannel operations. For example, a fashion retailer with both an online store and a physical location would benefit from Shopify POS’s ability to synchronise inventory and sales data across both channels. Shopify POS is particularly valuable for businesses that rely heavily on Shopify’s e-commerce platform.
• Payflo POS: Payflo POS is designed for small to medium-sized businesses that focus primarily on in-store sales. It is well-suited to industries like retail, hospitality, and services, where simplicity and cost-efficiency are key. For instance, a local hair salon using Payflo POS can streamline in-store payments without paying for features they don’t need, such as advanced e-commerce tools.

Which POS System Should You Choose?

Choosing the right POS system requires a clear understanding of your business model, operational priorities, and financial constraints. Both Shopify POS and Payflo POS serve different purposes and excel in specific areas. While Shopify POS is ideal for businesses deeply integrated with e-commerce, Payflo POS is designed for simplicity, cost-efficiency, and adaptability for in-store operations.

Let’s explore which system suits your business needs.

Choose Shopify POS If:

• You already use Shopify for your e-commerce store: Shopify POS seamlessly integrates with the Shopify platform, synchronising your online and in-store inventory. For example, if a customer buys an item online and picks it up in-store, Shopify POS will automatically update your inventory. This makes it a natural choice for businesses that already rely on Shopify’s ecosystem.
• You prioritise omnichannel features: Shopify POS offers advanced tools like buy-online-pick-up-in-store (BOPIS) and unified customer profiles. This is particularly useful for retailers who want to give customers the flexibility to shop online and interact in person. For instance, a clothing store can let customers try on items in-store that they reserved online, creating a cohesive shopping experience.
• You are prepared to invest in Shopify’s subscription fees and hardware: Shopify POS comes with ongoing subscription fees tied to its e-commerce plans. Additionally, its dedicated hardware, such as card readers and barcode scanners, adds to the cost. Businesses that value Shopify’s advanced features and are willing to pay for them will benefit most from this system. However, smaller businesses with limited budgets may find these costs restrictive.

Shopify POS is best for businesses that need a sophisticated omnichannel solution, particularly those with a strong online presence.

Choose Payflo POS If:

• Your business focuses primarily on in-store operations: Payflo POS is ideal for businesses that operate physical locations without the need for complex e-commerce integration. For example, a small café or a boutique store can use Payflo POS to process payments and track sales efficiently, without paying for features they don’t need.
• You want a cost-effective solution with competitive transaction fees: Payflo POS is designed to minimise costs, offering competitive rates on card payments and low setup fees. For instance, a food truck that processes hundreds of small transactions daily can save significantly on fees compared to systems with higher processing costs.
• You need a system that adapts to your industry without requiring additional tools or subscriptions: Payflo POS is versatile and works across industries like hospitality, retail, and services. It supports essential integrations, such as accounting software, but doesn’t tie businesses to costly subscription plans. For example, a local hair salon can use Payflo POS to manage transactions and inventory without investing in complex e-commerce tools.

Payflo POS is the ideal choice for businesses seeking a straightforward, cost-efficient solution for in-store sales.

Scalability for Growing Businesses

Scalability is a crucial consideration for businesses that plan to grow. As your operations expand, your POS system should support additional locations, products, and customers without requiring a complete overhaul. Here's how Shopify POS and Payflo POS handle scalability:

Shopify POS: Supporting Complex Growth

Shopify POS is built to accommodate businesses transitioning from small operations to larger enterprises with multiple locations and robust online-offline integration. For example, a retail chain that starts with one physical store can easily expand by adding more locations to the same Shopify account. Each store’s inventory syncs automatically with the central Shopify system, ensuring real-time updates across all channels.

Shopify’s subscription plans offer scalable features like advanced reporting and staff management tools. For instance:

• Staff Permissions: Large teams can have customised access to specific areas of the system, ensuring better control as your business grows.
• Enterprise Solutions: Shopify POS Pro offers additional features like advanced inventory tracking, multi-location management, and detailed analytics, catering to enterprise-level operations.

While Shopify POS excels in managing complexity, the increased functionality comes with higher subscription costs, making it better suited for businesses ready to invest in premium features.

Payflo POS: Flexibility for Expanding In-Store Operations

Payflo POS provides a cost-effective, scalable solution for businesses focusing on in-store growth. For example, a small boutique can start with basic features and easily add new locations or terminals as its operations expand.

Unlike Shopify POS, Payflo POS does not require subscription upgrades to unlock additional locations or hardware compatibility. Businesses can integrate new stores or equipment seamlessly without incurring significant costs. Additionally:

• Flexible Hardware: Payflo POS supports various hardware options, allowing businesses to use existing tools or choose affordable alternatives when scaling up.
• Adaptable Across Industries: From retail to hospitality, Payflo POS’s flexibility ensures it can cater to diverse needs as businesses expand into new industries or services.

Payflo POS’s simplicity and affordability make it ideal for businesses that want to grow steadily without committing to high subscription fees.

Which System is Better for Scalability?

• Choose Shopify POS if your growth involves e-commerce integration or if you plan to manage multiple locations with detailed analytics.
• Choose Payflo POS if you focus on in-store operations and want a budget-friendly solution for scaling.

ROI for Each System

Return on investment (ROI) is a critical factor when selecting a POS system. A good POS system should not only manage transactions but also help businesses save costs, boost efficiency, and increase revenue over time. Let’s break down the ROI for Shopify POS and Payflo POS:

Shopify POS: Maximising Omnichannel ROI

Shopify POS offers strong ROI for businesses with a significant online presence. By integrating online and in-store operations, Shopify POS reduces redundancies and provides a seamless customer experience that can drive sales.

For example:

• Increased Customer Retention: Features like unified customer profiles and loyalty programs encourage repeat purchases both online and offline.
• Higher Average Order Value (AOV): Shopify POS enables upselling and cross-selling with personalised recommendations based on customer data.
• Time Savings: Automating inventory updates between online and physical stores reduces manual errors, saving valuable staff hours.

However, the upfront and ongoing costs of Shopify’s subscription plans can impact ROI for businesses that don’t fully utilise its advanced features. Businesses relying heavily on in-store sales alone might not see the same level of return.

Payflo POS: Boosting ROI for In-Store Operations

Payflo POS delivers strong ROI for businesses focusing on in-store operations by keeping costs low and improving efficiency.

Key ways Payflo POS drives ROI include:

• Reduced Operating Costs: Competitive transaction fees mean businesses keep more of their revenue. For example, a café processing hundreds of small transactions daily will save significantly on payment processing fees compared to systems with higher rates.
• Streamlined Operations: Features like real-time inventory tracking reduce stockouts and overstocking, minimising financial losses from mismanaged inventory.
• Improved Staff Efficiency: A simple, user-friendly interface means less time spent training staff and more time focused on serving customers.

Payflo POS offers predictable costs, making it easier for small and medium-sized businesses to calculate and maximise ROI without unexpected expenses.

Which System Offers Better ROI?

• Choose Shopify POS if your business benefits from omnichannel features, such as integrating online and in-store sales to increase customer retention and average order values.
• Choose Payflo POS if you prioritise low operating costs and want a system that boosts efficiency for in-store transactions without high subscription fees.

Both systems can offer significant ROI when aligned with the specific goals and needs of your business.

Conclusion

Choosing between Shopify POS vs Payflo POS depends on your business priorities. Shopify POS is ideal for businesses with strong e-commerce needs and a focus on omnichannel operations. Payflo POS, on the other hand, provides an efficient and flexible solution for small to medium-sized businesses focused on in-store transactions.

At Payflo, we understand that every business is unique. Our POS system is designed to support your specific needs, offering robust functionality without unnecessary costs. Contact Payflo today to learn more about how we can help your business thrive with the right point-of-sale solution.

FAQs

1. Can an EFTPOS terminal replace a POS system?
   No, EFTPOS terminals only handle payment processing, while POS systems manage sales, inventory, and customer data.
2. Are POS systems necessary for small businesses?
   Yes, even small businesses can benefit from POS systems as they help track sales, manage inventory, and streamline operations.
3. What happens during a network outage with POS and EFTPOS?
   Both systems often support offline functionality, recording and processing transactions once the connection is restored.
4. Which system is better for mobile businesses?
   EFTPOS systems are better for mobile setups like food trucks due to their portability and ease of use.
5. Do both systems support multiple payment methods?
   Yes, both POS and EFTPOS systems accept debit cards, credit cards, and contactless payments like Apple Pay and Google Pay.