Starting a business is expensive, which is why many small business owners look for free POS software to reduce upfront costs without sacrificing essential tools. The best free POS systems let you process payments, track inventory, manage sales, and run day-to-day operations from a single platform, while still giving you room to grow as your business scales.
However, “free” does not always mean zero cost. Most free POS systems make money through payment processing, hardware, paid add-ons, upgrade plans, or required contracts. That is why I focused on what each free POS plan actually includes, what costs extra, and which option fits different small business types.
I compared free POS software for retailers, restaurants, mobile sellers, food retailers, wholesalers, and service businesses. My top recommendations balance free plan features, payment tools, inventory management, ease of use, upgrade costs, and real-world limits for small businesses.
Based on my testing, these are the best free POS systems for small businesses:
| Provider | Best for | Paid plan starts at |
|---|---|---|
| Square | Overall free POS | $49 per month |
| Helcim | Wholesalers and large-ticket items | No paid plans |
| Toast | Full-service restaurants | $69 per month |
| PayPal POS | Freelancers and occasional sellers | $25 per month |
| eHopper | Minimizing POS fees | $14.99 per month |
| Loyverse | Food retailers and quick-service restaurants | $5 per month |
- Best free POS software compared
- Hidden costs of free POS software
- Square: Best overall free POS software
- Helcim: Best for wholesalers and large-ticket items
- Toast: Best for full-service restaurants
- PayPal POS: Best for occasional and PayPal sellers
- eHopper: Best for minimizing POS fees
- Loyverse: Best for quick-service restaurants
- Free vs paid POS software: When should you upgrade?
- How to choose free POS software for your small business
- Methodology: How I evaluated the best free POS software
- Frequently asked questions (FAQs)
- Bottom line
Best free POS software compared
| My expert score (out of 5) | What is free | What costs extra | Payment processing requirement | |
|---|---|---|---|---|
| Square | 4.48 | POS app, payment processing setup, mobile app, basic inventory, basic reports, CRM, ecommerce tools, and a magstripe reader | Advanced inventory, loyalty, marketing, payroll, team tools, industry-specific upgrades, and hardware | Must use Square Payments |
| Helcim | 4.38 | POS software, payment tools, invoicing, ecommerce tools, customer portal, inventory tools, and automated volume discounts | Card reader, smart terminal, Amex transactions, and custom POS development needs | Must use Helcim Payments |
| Toast | 4.26 | Starter POS software, restaurant workflows, 24/7 support, reporting, and hardware options through its free plan | Online ordering, delivery integrations, loyalty, email marketing, payroll, gift cards, catering tools, and additional hardware | Must use Toast Payments |
| PayPal POS | 4.09 | POS app, payment processing setup, mobile selling tools, basic product tracking, and PayPal checkout support | Hardware, advanced retail tools, advanced restaurant tools, and some expanded commerce features | Must use PayPal processing |
| eHopper | 4.07 | POS tools, payment processing setup, cash tracking, mobile app, inventory features, CRM, loyalty, and digital signage tools | Advanced tools, hardware, add-ons, and higher-tier POS features | Varies by setup |
| Loyverse | 4.06 | POS app, integrated third-party payments, basic inventory, modifiers, sales analytics, kitchen display tools, and customer display tools | Advanced inventory, employee management, integrations, 24/7 support, and hardware | Supports third-party processors |
How I chose the best free POS software
All of my recommendations start with a forever-free plan. Some of them require hardware to start selling, usually, a card reader that pairs with the POS app downloaded to a smartphone or tablet. I researched and evaluated a variety of POS software with a free plan. Using a weighted rubric, I compared pricing and value, general features, additional features, ease of use, and my own personal experience. You can read more about my methodology below.
If you’re looking for features not included in any of my free POS recommendations, check out our list of top competitively priced POS systems.
Hidden costs of free POS software
Free POS software is rarely completely free. Most providers charge for payment processing, hardware, advanced inventory, employee tools, loyalty programs, marketing, ecommerce features, customer support, or add-ons.
Before choosing a free POS system, compare the full cost of accepting payments and running your checkout setup. Look at card-present rates, online rates, keyed-in rates, card readers, terminals, barcode scanners, receipt printers, ecommerce tools, employee permissions, inventory limits, reporting, integrations, and support access.
A free POS plan is usually enough for a new or low-volume business. You may need to upgrade once you need advanced inventory, multilocation tools, detailed reports, staff management, loyalty, online ordering, or lower payment processing rates.
Square: Best overall free POS software
Square offers a completely free POS system for unlimited users and locations. It provides the most features and the widest range of free plan options (basic and industry-specific) of the providers on this list. With your free Square POS account, you can sell in-store, online, and via mobile app, and the platform has dedicated POS systems for restaurants, retailers, and salons. You also get a free magstripe card reader to get your business started right away.
As your business grows, Square’s tools can scale with add-on tools and third-party integrations. However, you can’t switch to a different payment processor and keep using Square’s free POS. Check out Loyverse instead for this.
Who should use Square
- New and small businesses that process sales up to $10,000/month
- Retailers, service businesses, mobile sellers, and pop-up shops that need a free POS they can start using quickly
- Small businesses that want room to grow into paid tools for advanced inventory, loyalty, marketing, payroll, or ecommerce
- Built-in payment processing
- Mobile POS app
- Ecommerce tools with website builder
- Basic invoicing features
- Basic team management
- Basic inventory management
- Some customized reports
- CRM tools
- Magstripe reader
- Retail tools: In-store and curbside pickup, social selling
- Restaurant tools: Menu and table management, ticket management
While its processing fees are more expensive than most, Square’s free plan offers everything you might need to run your business, plus advanced plans and add-ons to support your business as it grows. Square locks users into its built-in payments solution, which makes for easy setup but is limited in terms of finding the lowest processing rates possible.
Cost to upgrade:
- Monthly Paid Plans: $49-$149
- Invoicing Plus: $30 per month
- Team Plus: $35 per month, per location
- Payroll: $35 per month, plus $6 per employee (No base monthly fee if you are paying contractors)
- Marketing: Starts at $10 (text message) or $15 (email) per month
- Loyalty program: Starts at $45 per month
Payment processing fees:
- Monthly fee: $0
- Card-present processing fee: 2.6% plus 15 cents per transaction
- Keyed-in processing fee and card on file: 3.5% plus 15 cents per transaction
- Online payment processing fee: 2.9% plus 30 cents per transaction
Hardware cost:
- Mobile card reader: $0-$59
- Smart terminal: $299 or $27 per month for 12 months
- Countertop terminal: From $149-$799 (installment plans available)
Though Square’s free plan features are more than adequate for running a small business, there are still plenty of reasons and ways to upgrade. In addition to upgrading your software plan to get advanced inventory, reports, and team management, there are paid add-ons for loyalty, marketing, and payroll that you can add to any Square account.
Once you’ve purchased these add-ons, they appear directly on your POS dashboard, ready for immediate use. No other POS system offers so many native add-ons.
Read our reviews for:
Also read: Our recommended alternatives to Square
Helcim: Best for wholesalers and large-ticket items
Helcim is primarily a traditional merchant account service provider that has since developed its own POS software. The system does not have full industry-specific features, such as those of Square and Toast, but it’s equipped with sophisticated matrix inventory and customizable checkout tools.
Helcim also has an integrated website builder and mobile POS app. What makes Helcim stand out, though, is its interchange-plus transaction fee pricing, providing the cheapest rates on our list. And with the built-in automated volume discount, merchants are assured of the lowest fees without the need to request Helcim to review their rates.
Who should use Helcim
- B2Bs, wholesalers, fast-growing subscription services, and businesses selling large-ticket items (automotive, real estate, jewelry, art)
- Businesses that want payment processing, invoicing, customer tools, inventory, and online checkout without monthly POS software fees
- Free POS software
- Advanced inventory management
- Online catalog and customer portal builder
- Payment processing
- Free credit card processing program
- HIPAA compliance for healthcare services
- Invoicing and billing features
- Dispute management
- SDK and API documentation
Cost to Upgrade: None
Payment Processing Fees:
- Monthly fee: $0
- Card-present fee: Interchange plus 0.15% + 6 cents to 0.4% + 8 cents
- Card-not-present fee: Interchange plus 0.15% + 15 cents to 0.50% + 25 cents
- American Express transactions: 0.10% + 10 cents
Hardware Cost:
- Mobile card reader: $99
- Smart terminal: $329 or $29 for 12 months
Helcim lacks industry-specific POS features, and there are no paid Helcim POS plans for upgrade. That said, Helcim’s developer tools are available to customize POS features based on your requirements.
Also, Helcim’s payment processing services are designed for fast growth, so merchants that need advanced POS tools to handle increasing sales can still use their Helcim merchant account and integrate it with other software such as accounting, order management, and CRM.
Toast: Best for full-service restaurants
The Toast free plan offers a choice of industry-grade hardware, restaurant features, and a built-in payment processing bundle. No other POS on this list makes a pay-as-you-go plan with a complete POS hardware setup that allows merchants to start their business with zero upfront cost.
Toast’s free plan also provides “sub-plans” that give users access to additional features. Note, however, that it will tie you into a two-year contract and higher transaction rates; consider upgrading to a paid plan once your business begins to accept large-volume payments.
Who should use Toast
- Toast’s free plan is ideal for new and small full-service restaurants looking to minimize their upfront cost
- Full-service restaurants, cafes, bars, and food businesses that need menu management, tips, tabs, and order workflows
- Growing restaurants that want a free starter option but may upgrade later for online ordering, loyalty, payroll, or marketing
Toast offers a single flat-rate transaction fee for its free plan, which varies as new features are added. Transaction fees are different for plans with monthly fees.
- Choice of countertop and handheld hardware kit
- Basic restaurant POS software
- Transaction fee: 3.09% + 15 cents
- Built-in payment processing
- 24/7 customer support
- Reporting and analytics
- Transaction fee: 3.39% + 15 cents
- + Online ordering
- + DoorDash, Uber Eats, and Grubhub integration
- Transaction fee: 3.69% + 15 cents
- + Loyalty
- + Email Marketing
- + Ecommerce website
- + Catering & events scheduling
- + Basic team management & Payroll
Toast’s paid plans are lower, but merchants must purchase the hardware upfront. Add-on options are like the free plan, but are charged a separate add-on monthly fee instead.
Cost to upgrade:
- Monthly Paid Plans: $69 and custom pricing
- Online Ordering: $75/month
- DoorDash, Uber Eats, and Grubhub integration: $75/month
- Gift Cards: $50/month
- Loyalty: $50/month
- Email Marketing: $75/month
- Ecommerce Website: $75/month
- Toast Catering & Events: $100/month
Payment processing fees:
- Card-present processing fee: 2.49% + 15 cents
- Keyed-in processing fee: 3.5% + 15 cents
- Online payment processing fee: 3.5% + 15 cents
Hardware cost:
- Additional terminal with card reader: $719.10
- Smart terminal: $494.10
- Countertop kit: $1,024.20
- Guest-facing display: $225
- Kitchen display screen: $674.10
Toast’s free plan is perfect for small, full-service restaurants, but you will have to consider upgrading to a paid plan if you find that your business is expanding quickly or you wish to add mobile, online, and delivery to your source of revenue.
Additionally, you might want to upgrade if you see a steady increase in your monthly sales from both online and dine-in customers to save on transaction fees.
PayPal POS: Best for occasional and PayPal sellers
PayPal Zettle, recently rebranded as PayPal POS, is a free, full-featured POS system (replacing PayPal Here) that offers both in-person and online sales solutions. It is popularly known as one of the best alternatives to Square for mobile and POS payments, with its lower in-person transaction fees and variety of payment methods.
Businesses with a PayPal merchant account can accept card payments, gift cards, digital wallets, and P2P payments, such as Venmo and PayPal quick response (QR) codes. This makes PayPal POS a great option for freelancers, hobbyists, and other microbusinesses.
Who should use PayPal POS
- Freelancers, hobbyists, occasional or seasonal sellers, such as those that sell to tourists
- Small mobile businesses, freelancers, market vendors, and occasional sellers that already use PayPal
- Sellers that need a simple free POS app for in-person payments, Tap to Pay, and basic product tracking
- Small businesses that want PayPal, Venmo, and card payment options without committing to a full retail or restaurant POS
- Mobile POS app (Android and iOS)
- Mobile payment processing
- Built-in invoicing features
- Discounted first mobile card reader
- Inventory management
- Basic team management
- Bulk inventory transfers
- Multichannel sales management
- Basic reporting features
- Accounting and online sales integrations
Cost to upgrade:
- Monthly Paid Plans: $0
- Virtual Terminal: $30/month
- Payment Gateway: $25/month
Payment processing fees:
- Monthly fee: $0
- Card-present processing fee: 2.29% + 9 cents
- Keyed-in processing fee: 3.49% + 9 cents
- Invoice payment processing fee: 3.49% + 9 cents
- QR code payment fee: 2.29% + 9 cents
Hardware cost:
- Mobile card reader: $79, first reader discounted at $29
- Smart terminal: From $199
- Countertop terminal: From $159
You must pay a monthly fee if you want to use PayPal’s virtual terminal and payment gateway. Also, PayPal POS has no business tool add-ons, except for third-party applications. You can integrate the platform with ecommerce software like BigCommerce, accounting software like QuickBooks, appointment software like Timely, or even other POS software like Lightspeed and Loyverse.
So, if you like PayPal for payment processing but the POS software does not quite fit the bill, consider third-party options. Most of these integrations, however, come with a fee.
Read more about PayPal payment processing:
- Fast payment processing set up: PayPal Business
- PayPal upgrade to enterprise-level features: Braintree
eHopper: Best for minimizing POS fees
eHopper is a POS system that includes many useful features even in the free subscription. However, you can also get more advanced POS plans for retailers, restaurants, service businesses, and quick-service restaurants (QSRs) for free if you use eHopper’s built-in payment processing and process at least $5,000 monthly in credit card sales.
I like how eHopper’s free plan helps small businesses minimize their ongoing cost. It even comes with a built-in surcharging and cash discounting program, making it possible to avoid processing fees. Combined with the free POS plan, you stand to save a lot of capital by choosing this software.
Who should use eHopper
- Retail and restaurants that process a monthly minimum credit card sales of $5,000
- Small businesses that want a free or low-cost POS with cash discounting or surcharge-friendly options
The eHopper free plan locks users to its built-in merchant processing service.
- Payment processing
- Inventory management
- Basic reporting
With advanced plans, free with minimum processing requirements:
- Advanced Inventory management
- CRM
- Loyalty management
- Tax computing
- Built-in credit card processing
- Surcharging and cash discounting
- Cash tracking
- Barcode manager
- Digital signage app
- Retail tools: Modifier management, Store transfer
- Restaurant tools: Kitchen display system (KDS), menu builder, table management, tip management
eHopper provides merchants with the option to choose between its built-in payment processing solution (powered by GoDaddy Payments) or integrate with third-party payment processors Nuvei, Evo Payments, TSYS, First Data, and North American Bank.
Cost to upgrade:
- Monthly Paid Plans: $14.99-$39.99 (paid monthly), or $10-$35.99 (paid annually)
- Ecommerce plan: Minimum $29.99/month
Payment processing fees: Based on built-in payment processing rates
- Monthly fee: $0
- Processing fee: From 2.5% + 10 cents (minimum of $20/month)
Hardware cost:
- Credit card terminals: $186-$710
- POS hardware bundles: $999-$1,499
As your business grows and you find yourself needing tools beyond basic reporting and inventory management, consider upgrading to the Omnichannel plan ($35.99-$39.99)—you’ll get more robust reporting tools, as well as unlimited products and transactions to work with. If you plan to offer online ordering at your restaurant, you must upgrade your subscription as well.
Loyverse: Best for quick-service restaurants
Loyverse is a popular POS system because it offers so much for free: analytics, kitchen display, customer display, ticket and order management, table management, and customer management. The free KDS is one reason I recommend it for quick-service restaurants.
Loyverse is also the only system on this list that offers a free integrated loyalty program. If you are running a restaurant and don’t want to use Square as your payment processor, Loyverse is also worth considering because it lets you choose your merchant service.
Who should use Loyverse
- Small QSRs with multiple locations, such as cafes and food kiosks
- Small businesses that want free loyalty tools, item modifiers, basic inventory, kitchen display tools, and customer display tools
- Food businesses that want to start free and add paid tools later for advanced inventory, employee management, integrations, or support
- Basic POS software
- Choice of payment processor: SumUp and PayPal
- Loyalty program
- Multilocation management
- Basic sales analytics and inventory reports
- Kitchen display system
- Customer display system
Cost to upgrade:
- Advanced Inventory: $25
- Employee Management: $5
- Access to Integrations: $9
Payment processing fees:
Depends on your choice of payment processor. US merchants can either use PayPal Zettle or SumUp.
Hardware cost:
Contact Loyverse for pricing
Busy restaurants and caterers wanting to track ingredients should consider adding Loyverse’s advanced inventory and employee management, which includes time clocks, sales tracking, and efficiency reports. Better yet, restaurants that have the budget for a paid system should consider investing in Toast.
Free vs paid POS software: When should you upgrade?
Free POS software is usually enough for new, small, or low-volume businesses that need checkout, basic inventory, simple sales reports, and payment processing. A free plan can also work well if you only have one location, a small staff, and straightforward products or services.
A paid POS plan is usually worth it once the free plan starts slowing you down or forcing manual work. Upgrade when you need:
- Advanced inventory, purchase orders, vendor management, barcode tools, or stock forecasting
- Employee permissions, time tracking, commissions, scheduling, or payroll
- Loyalty programs, email marketing, customer segmentation, or gift cards
- Online ordering, delivery tools, ecommerce sync, or multilocation reporting
- Stronger customer support, offline mode, custom integrations, or lower processing rates
The right time to upgrade is when the paid features save more time, reduce more errors, or support more sales than the monthly fee costs.
How to choose free POS software for your small business
Choosing the best free POS software starts with understanding what your business needs now and what you may need later. A free POS should be simple enough to use on day one, but flexible enough that you do not have to switch systems too quickly.
1. Check what is actually free
Review the free plan closely. Some providers include POS software, inventory, reporting, ecommerce, or loyalty tools at no monthly cost, while others charge for advanced features, add-ons, support, or hardware.
2. Compare payment processing costs
Free POS systems usually make money through payment processing. Compare card-present, online, keyed-in, invoice, and mobile payment rates before choosing a provider. A free POS with high processing fees may cost more than a paid POS as your sales grow.
3. Review inventory tools
Look for basic stock tracking, item variants, categories, modifiers, low-stock alerts, barcode tools, and purchase orders. Retailers and food businesses should pay close attention to inventory limits and upgrade costs.
4. Match the POS to your business type
Restaurants need menu tools, order routing, tips, tabs, and kitchen workflows. Retailers need inventory, barcode labels, returns, and customer profiles. Mobile sellers need simple checkout and card readers. Choose the free POS that fits your daily workflow.
Free POS software by business type
| Business type | Best free POS software | Why it fits |
|---|---|---|
| New small business | Square | It offers the easiest free setup, built-in payments, basic inventory, reports, and room to upgrade |
| Budget-conscious retailer | eHopper | It is built for sellers that want to reduce POS and payment processing costs |
| Cafe or food retailer | Loyverse | It includes free modifiers, kitchen display tools, customer display tools, and food-service-friendly inventory |
| Full-service restaurant | Toast | It offers restaurant workflows, order management, reporting, support, and hardware options |
| Mobile seller | PayPal POS | It works well for sellers that need simple in-person payments tied to PayPal |
| Wholesaler or large-ticket seller | Helcim | It offers free POS tools with interchange-plus pricing and automatic volume discounts |
| Ecommerce seller | Square | It includes free online selling tools and syncs with POS sales, inventory, and customer data |
| Business that wants inventory tools | Square | It includes basic inventory for free and has paid upgrades for more advanced retail needs |
| Business focused on lower processing costs | Helcim | It is the strongest fit for sellers that want lower card processing rates as volume grows |
5. Check hardware costs
Even if the software is free, you may still need a card reader, tablet, receipt printer, cash drawer, barcode scanner, or full register kit. Compare hardware prices before committing to a provider.
6. Look at upgrade paths
A good free POS should give you room to grow. Check paid plan pricing, add-ons, staff tools, loyalty, marketing, ecommerce, multilocation features, and advanced reporting before you start entering products and customer data.
7. Test the system before switching
Use the free plan or demo to run a few real workflows. Test checkout, refunds, inventory edits, reports, taxes, discounts, tips, customer profiles, and hardware connections before using the POS in daily operations.
Learn more: What is a POS system?
Methodology: How I evaluated the best free POS software
To build this list of the best free POS software for small businesses, I analyzed 17 providers across 24 data points, focusing on systems that offer true free plans with no upfront costs or monthly fees. I prioritized solutions that deliver strong core POS functionality within their free tier, along with reliable performance and positive user feedback.
From this analysis, six systems stood out as the most well-rounded, feature-rich, and practical options for small business use. Each provider was evaluated using consistent criteria that reflect how businesses compare POS systems in real purchasing decisions, including the following categories:
- Pricing and value (30%): I examined what each free plan actually includes, since “free” often comes with limitations. I considered upgrade costs, hardware pricing, and overall value to determine how usable each system is without requiring paid add-ons.
- General features (20%): I evaluated the core POS capabilities included in the free plan, such as sales processing, inventory tracking, customer management, employee tools, and built-in loyalty features.
- Additional features (15%): I looked at added functionality that extends beyond basic POS tools, including ecommerce capabilities, multi-location management, industry-specific features (like restaurant tools), and available integrations.
- Ease of use (20%): I assessed how intuitive each system is, factoring in setup, interface design, device compatibility (mobile and desktop), cloud accessibility, and the availability of customer support.
- Expert score (15%): I incorporated hands-on experience, overall feature quality, and real user feedback to evaluate how each system performs in real-world business environments.
When possible, I reviewed platforms through free plans, demos, or hands-on testing to better understand day-to-day usability and performance. Square came out on top as the best free POS system for small businesses. This isn’t a surprise, Square also ranks on our lists of the following:
Frequently asked questions (FAQs)
What is the best free POS software for small businesses?
Square is the best free POS software for most small businesses because it includes free checkout tools, inventory management, payment processing, reporting, and an online store with no monthly software fee. Other strong options include Toast for restaurants, Loyverse for inventory-heavy retailers, and Helcim for businesses looking for lower payment processing costs.
Are free POS systems really free?
Most free POS systems do not charge a monthly software fee, but they still charge payment processing fees for every transaction. Some providers also charge for advanced tools, additional registers, ecommerce features, or upgraded reporting.
What is the best free POS software for restaurants?
Toast is the best free POS software for full-service restaurants because it includes restaurant-specific tools and hardware options. Loyverse is a better fit for cafes, food retailers, and quick-service businesses that want a simple free POS app.
What is the best free POS software for retail?
Square is the best free POS software for many retailers because it includes checkout, payments, basic inventory, customer profiles, reports, and online selling tools. eHopper is also worth considering if lowering POS and processing costs is your main goal.
What is the best free POS software with inventory?
Square is the best free POS software with inventory for most small businesses because it includes basic item tracking, categories, variants, and reports. Loyverse is also strong for food retailers that need modifiers and simple stock tracking.
Can I use free POS software without payment processing?
Sometimes. Some free POS systems let you use third-party processors or track cash sales, but many require you to use their built-in payment processing. Check processor requirements before choosing a system.
What is the cheapest POS system?
The cheapest POS system depends on your payment volume and hardware needs. Square, Loyverse, PayPal POS, and eHopper all offer free or low-cost POS options, while Helcim may be cheaper for higher-volume businesses because of its interchange-plus pricing.
Bottom line
If all you need is a basic POS system, there are free ones that do the job. The products listed above are my top picks for free POS systems and are great to get you started—and they may be all you need. If not, most offer more advanced features via upgrades or add-ons, for reasonable prices.
I recommend Square as the best free POS software for small businesses because it offers a free version with unlimited uses, reasonable processing fees, and an extensive register and inventory feature set for practically all business types. It even has a free online store, so you are not tied to physical sales. Sign up for a Square account to experience all this for yourself.
