Lightspeed POS Review: is it right for your small business?

Lightspeed is a high-performing retail POS system, particularly for features like in-depth analytics, invaluable integrations, built-in customer relationship management, and a wide range of other tools to help you manage your business.

Lightspeed is a particularly good choice for small retail and hospitality businesses looking to upgrade from simple POS providers like Square or PayPal Point of Sale. However, this also means signing up to lengthy contracts and investing more in your POS capabilities.

In this review, we’ll look at what features make this POS system a winner for so many small retail and hospitality businesses, how much it costs, and whether it’s the right choice for you.

What is Lightspeed?

Lightspeed is a cloud-based POS and commerce platform made for both retail and hospitality businesses.

Unlike basic card-processing readers, Lightspeed brings together inventory management, omnichannel sales, kitchen display systems (KDS), and financial reporting in one place.

Lightspeed requires a formal contract for all standard software subscriptions, which start from 12 months minimum. If you cancel your contract before the end date, you will have to pay the remainder of your term period. However, you can cancel for free within 14 days of signing up, and Lightspeed also offers a Contract Buy Out promotion that pays up to £350 towards your previous provider’s exit fees if you switch to them.

Lightspeed pros and cons

Lightspeed’s combination of sales, inventory, customer management, and operational tools makes it ideal for growing or multi-location businesses. However, its extensive feature set comes with higher costs and a steeper learning curve than some entry-level alternatives, so we wouldn’t recommend it if you’re a new business or startup.

How much does Lightspeed cost?

Lightspeed’s monthly software subscription starts at £75 per month (billed annually). However, other pricing you’ll need to consider is card processing fees and hardware packages.

Software subscriptions

Lightspeed’s software subscription price depends on whether you operate in retail or hospitality, as well as the number of features and registers required.

Payment processing rates

Lightspeed requires businesses to use its in-house payment processor, Lightspeed Payments. For in-person (card present) payments, these are custom-quoted based on card turnover. However, according to Lightspeed’s transaction fee table, processing fees can start from £75 per month.

Hardware & add-on costs

For Lightspeed’s terminal/hardware bundles, you should expect an upfront hardware investment between £300 and £800 for an iPad stand, receipt printer, cash drawer, and card reader.

Meanwhile, add-on modules (like KDS) cost approximately £32 + VAT per month, per screen. Adding integrated web-store synchronisation ranges from £89 + VAT per month.

What are Lightspeed’s key features?

Lightspeed supports businesses beyond simple payment processing. While core capabilities – such as inventory management, reporting and customer relationship management (CRM) – are available across the platform, Lightspeed also provides industry-specific features tailored to the needs of retail and hospitality businesses.

Key features for retail

One of Lightspeed’s biggest strengths is its comprehensive suite of back-office tools, allowing retail businesses to benefit from advanced inventory control, supplier management, customer engagement and more.

• Multi-variant inventory: complex product catalogue matrices by size, colour, material, and SKU variants, as well as automatic tracking across physical stores and warehouse locations in real time.
• Automated purchase and supplier catalogues: integrated wholesale tools that allow businesses to generate purchase orders, track incoming supplier shipments, and auto-populate new inventory directly into the system.
• Omnichannel and ecommerce synchronisation: connects physical till points with online stores to maintain unified inventory levels, shared customer accounts, and synchronised order histories.
• Multi-location stock transfers: move stock between store locations with internal transfer tracking to prevent stockouts.
• Built-in customer loyalty and CRM: create customer profiles, track purchase habits, send personalised promotions, and run automated loyalty programs at checkout.

Key features for hospitality

For hospitality firms, Lightspeed offers a dedicated suite of restaurant management tools designed to improve service efficiency, streamline operations, and simplify stock control.

• Visual table and floor plan management: customise visual dining layouts across multiple rooms or outdoor spaces, letting staff move customer bills, assign specific seats, and monitor table status in real time.
• KDS and order routing: sends orders immediately from the system to kitchen screens or station printers, with course firing (starters, mains, desserts) to notify when courses should be prepared.
• Raw ingredient tracking and recipe costing: tracks stock down to the individual ingredient level (such as deducting millilitres of spirit per cocktail or grams of cheese per dish) to monitor waste and trigger low-stock alerts.
• Bill splitting and service charge tools: split bills by seat, item, or equal monetary amounts at the terminal, with automated service charge additions and tip tracking per shift.
• Delivery and QR table ordering integration: integrates online ordering platforms (like Uber Eats and Deliveroo) directly into the POS screen, as well as optional QR-code table ordering.

What is Lightspeed’s hardware like?

Lightspeed offers a range of hardware to suit different business types and operating environments. Whether you’re setting up a fixed checkout, a mobile point-of-sale, or a full-service restaurant business, there are plenty of options to meet your needs.

Best hardware for retail businesses

Lightspeed offers two main hardware packages for retail businesses – the iPad point of sale hardware kit and the desktop hardware kit.

The iPad point-of-sale hardware kit can be completely wireless, letting staff pick up the POS and take it to the sales floor. It includes a LAN receipt printer, cash drawer, Bluetooth scanner, Lightspeed iPad stand and receipt paper, but does not include the iPad and payment terminal.

On the other hand, its desktop hardware kit comes with a USB receipt printer, cash drawer, and USB scanner. The iMac is not included.

Alternatively, if you don’t need an entire bundle, you can purchase individual hardware. Here are a few examples:

Best hardware for hospitality businesses

When choosing hardware for hospitality, you will need to make sure it’s compatible with either the K Series or L Series software. If your Lightspeed app shows a white logo on a red background, you’re using K Series. Or, if your app has a red logo on a white background, you’re using L Series.

The hardware compatible with K Series is:

The hardware compatible with L Series is:

What are the best alternatives to Lightspeed?

The best alternatives to Lightspeed are Shopify POS, Square, Clover, TouchBistro, Epos Now, and PayPal Point of Sale.

As with other POS systems, Lightspeed isn’t the right fit for everyone. Some businesses may find Lightspeed’s pricing structure, feature depth, or level of complexity more than what they need.

Below are some of the strongest Lightspeed alternatives, each suited to different types of businesses and use cases.

Best alternatives to Lightspeed: overview

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		Pricing from	Transaction fees
Shopify	Square	Clover	TouchBistro	Epos Now	PayPal Point of Sale (formerly Zettle)
Hardware: from £59 + VAT Software: from £25 per month £1 per month for the first three months	Hardware: from £19 + VAT Software: from £0	Quote-based	$69 per month	Hardware: from £179 Software: from £25 per month	Software: From £0 Hardware: From £29
From 1.50% to 2.00% + 25p	From 1.4% + 25p to 2.5% (UK cards)	From 1.49%	Not publicly disclosed; final rates vary	1.3%	From 1.75% to 2.5%

1. Shopify POS

If you run an ecommerce store on top of brick-and-mortar premises, Shopify is the ideal POS system as it seamlessly connects physical storefronts with online sales channels, including BOPIS (Buy Online, Pick Up In-Store), Endless Aisle (ship to customer online if something isn’t in stock in-store) and BORIS (Buy Online, Return In-Store).

✔️ Suitable for: hybrid retail businesses looking for unified online and in-store inventory management.

❌ Not suitable for: dedicated, food-service-only hospitality venues, as Shopify is primarily designed for ecommerce and retail businesses.

2. Square POS

Unlike Lightspeed, Square doesn’t require a fixed contract to access its services – offering an intuitive register UI with minimal staff training requirements and zero monthly software fees on standard tiers.

✔️ Suitable for: low-volume or seasonal businesses, such as pop-up stores, cafes, and independent boutiques.

❌ Not suitable for: high-volume businesses making over £10,000-£15,000 per month, as Square’s flat 1.75% transaction rate can quickly become a financial burden.

3. Clover POS

Clover’s proprietary hardware is built for reliability and ease of use, with a responsive touchscreen interface that simplifies order taking and payment processing, including integrated line printers and customer-facing displays.

✔️ Suitable for: fast-paced counter service and retail businesses, as well as service-based businesses like salons, spas, and personal care.

❌ Not suitable for: fast-growing ecommerce or hybrid retailers, as it lacks the native depth of online-first platforms like Shopify POS.

4. TouchBistro

Built specifically for food service businesses, TouchBistro offers responsive floor plan customisation, bill splitting, and kitchen ordering directly from its iPad POS system – ideal for taking orders on the go.

✔️ Suitable for: full-service restaurants, bars, and pubs needing iPad-based floor and table management.

❌ Not suitable for: retail businesses, as it does not support retail inventory, ecommerce syncing, or multi-store merchandise management.

5. Epos Now

Epos Now specifically stands out for its extensive back-office customisation – including reporting dashboards and integration with multiple third-party accounting and inventory tools – and range of hardware choices across Android, Windows, and iOS terminals.

✔️ Suitable for: established SMEs with a need for customisable back-office reporting and integrations with third-party apps.

❌ Not suitable for: fast-paced hospitality businesses (like bars or quick-service restaurants) due to user feedback pointing out a clunky and confusing front-end.

6. PayPal Point of Sale

PayPal Point of Sale offers a straightforward and mobile-friendly interface to help businesses process payments quickly – complete with seamless integration with the wider PayPal ecosystem.

✔️ Suitable for: sole traders and microbusinesses looking for low-cost hardware, transparent transaction fees, and an easy-to-use interface.

❌ Not suitable for: multi-location retail businesses or complex hospitality kitchens, as it lacks raw inventory and reporting depth.

Our methodology

To assess Lightspeed against its leading competitors, we carried out extensive research across 78+ evaluation areas, combining 22.5 hours of hands-on user testing across 26 payment providers. This allowed us to compare each platform across the factors that matter most to small businesses, retailers, and hospitality operators.

We focused our analysis on six core areas, weighting each category based on its impact on everyday business operations.

• Usability (35%): how easy each platform is to navigate, including checkout speed, workflow efficiency, and how quickly staff can become confident using the system.
• Software capabilities (25%): essential POS functionality, including sales tools, product management, inventory features, reporting, and third-party integrations.
• Pricing (20%): the overall value for money, including subscription costs, hardware investment, contract requirements, and transaction fee transparency.
• Help & support (10%): the quality and availability of customer support, including UK-based assistance, onboarding resources, and response times when businesses need help.
• Hardware (5%): hardware options like mobile card readers, tablet compatibility, receipt printers, and other essential POS equipment.
• Reputation (5%): customer feedback, reliability, market presence, and overall trust among UK businesses.

Final thoughts

Lightspeed is a highly sophisticated POS system for restaurant and retail businesses. Its flexibility with both its base software packages and integration partners makes it suitable for even the most niche enterprise.

That said, being so feature-rich, its packages don’t come cheap. If you are in the market for a point of sale system, make sure you’re going to use all of its features before you sign on the dotted line.

Remember that there are cheaper, less sophisticated POS systems out there that can offer you all the tools and integrations you need to get your business off the ground. If you’re choosing between them and Lightspeed, make sure to compare base packages and third-party software partners before you buy.