Square vs Toast vs Lightspeed: Which POS Wins in 2026?

Choosing between Square, Toast, and Lightspeed represents one of the most common decisions facing business owners today. Each platform has built strong reputations and serves thousands of businesses. But which one actually delivers the best value in 2026, and is there a better alternative that saves you more money?

Let’s break down the real differences between these three POS giants and explore what they mean for your bottom line.

Square POS: Simplicity at a Price

Square built its brand on ease of use and quick setup. Download the app, connect a card reader, and start accepting payments within minutes. The free basic plan attracts small businesses and entrepreneurs just starting out.

The simplicity comes with limitations. Free Square handles basic transactions but lacks essential business features. Advanced inventory management, employee permissions, detailed reporting, and multi-location support require paid plans starting at $60 monthly per location.

Processing fees sit non-negotiably at 2.6% plus 10 cents for card-present transactions. You cannot choose alternative processors with better rates. For a business processing $20,000 monthly, that equals $520 in fees compared to roughly $400 with competitive processors, costing an extra $1,440 annually.

Square works well for very small operations, food trucks, and pop-up vendors. Growing businesses quickly outgrow the free plan and face escalating subscription costs plus locked-in processing fees.

Three-year cost for Square Plus at one location: $2,160 in subscriptions plus processing fees.

Toast POS: Restaurant-Focused Power

Toast designed its platform specifically for restaurants and food service. Table management, kitchen display systems, and menu customization work smoothly. Integration with delivery platforms like DoorDash and Uber Eats is reliable.

The restaurant specialization means Toast is less suitable for retail businesses. If you run a coffee shop, bar, or full-service restaurant, Toast makes sense. For general retail, it is overpowered and overpriced.

Subscription costs run $69 to $285 monthly per terminal depending on the plan. Most restaurants need at least the Essentials plan at $165 monthly. Processing fees add 2.49% plus 15 cents per transaction with no alternative processor options.

For a restaurant processing $50,000 monthly, processing fees alone cost approximately $1,320 monthly or $15,840 annually. Add $1,980 in annual subscription fees, and you are paying $17,820 yearly just to operate your POS.

Toast excels at restaurant-specific features but locks you into their ecosystem completely. Hardware, software, and processing all come from Toast, eliminating flexibility.

Three-year cost for Toast Essentials at one terminal: $5,940 in subscriptions plus processing fees.

Lightspeed: Retail Power with Premium Pricing

Lightspeed targets serious retail operations with comprehensive inventory management and detailed analytics. The platform handles complex product catalogs, supplier management, and multi-location operations well.

The power comes at premium pricing. Retail plans run $89 to $289 monthly per location. Multi-location businesses face steep total costs. A three-location retailer using the mid-tier plan pays $567 monthly or $6,804 annually just for software access.

Lightspeed’s learning curve is steeper than competitors. Training staff takes longer, and the interface feels less intuitive than Square. Customer support quality varies, with some users reporting slow response times.

E-commerce integration requires Lightspeed’s separate eCom platform or third-party connections. These integrations sometimes sync slowly, creating inventory accuracy issues for fast-moving products.

Processing fees depend on your chosen processor, giving Lightspeed an advantage over Square and Toast’s locked systems. However, Lightspeed’s recommended processors do not always offer the most competitive rates.

Three-year cost for Lightspeed Retail at one location: $6,804 in subscriptions plus processing fees.

The Real Winner: DreamsPOS

Here is what Square, Toast, and Lightspeed share in common. They all charge recurring subscription fees forever. They all lock you into specific ecosystems or payment processors. They all increase costs as your business grows.

DreamsPOS takes a different approach entirely. Pay once for the software, and it is yours permanently. No monthly subscriptions. No annual renewals. No forced payment processor relationships.

DreamsPOS includes comprehensive features from day one. Advanced inventory management, employee scheduling, multi-location support, detailed reporting, and offline functionality come standard. You are not paying for basic features and upgrading constantly as needs grow.

The cost difference is dramatic. DreamsPOS ranges from $699 to $1,499 one-time payment depending on business size. Compare that to three years of subscription costs: Square at $2,160, Toast at $5,940, or Lightspeed at $6,804.

Over five years, the savings reach $10,000 to $30,000 depending on which subscription platform you avoid. That is money staying in your business instead of feeding software companies indefinitely.

DreamsPOS works for restaurants, retail, service businesses, and multi-location operations. The flexibility matches or exceeds specialized platforms without forcing you into narrow use cases.

Feature Comparison: What You Actually Get

Inventory Management: Lightspeed leads in complexity, DreamsPOS matches it, Toast focuses on restaurant inventory, Square offers basic tracking.

Employee Management: DreamsPOS and Lightspeed provide full scheduling and time tracking. Toast includes restaurant labor management. Square requires paid plans for advanced features.

Multi-Location Support: DreamsPOS includes unlimited locations. Others charge per location, multiplying costs dramatically.

Offline Functionality: DreamsPOS operates fully offline. Toast and Square offer limited offline modes. Lightspeed requires connectivity.

Processing Flexibility: DreamsPOS and Lightspeed allow processor choice. Square and Toast lock you into their processing at non-competitive rates.

Making Your Decision

Square works for micro-businesses accepting its limitations and processing fees. Toast serves restaurants willing to pay premium prices for specialized features. Lightspeed fits established retailers with budget for substantial subscriptions.

DreamsPOS works for businesses wanting comprehensive features without perpetual costs. The one-time payment model eliminates the subscription trap while delivering enterprise capabilities at small business prices.

Processing $30,000 monthly over three years, you will pay roughly $28,800 in processing fees at competitive rates. Add DreamsPOS at $1,299 one-time for $30,099 total. Compare that to Square, Toast, or Lightspeed where subscriptions alone add $2,160 to $6,804 before processing fees.

The math favors one-time payment decisively. Visit DreamsPOS.uk to see how eliminating subscriptions transforms your business finances while delivering features that match or exceed Square, Toast, and Lightspeed.