Stripe, the San Francisco-based startup known for processing online payments, has expanded its product offerings to include a checkout solution for brick-and-mortar retail stores, according to a report by Recode.
Their latest product, Stripe Terminal, offers a payment solution for fast-growing businesses that sell products online and in physical locations. Digital-first brands, including Glossier and Warby Parker, plan to adopt the in-person payment services following the launch.
Stripe Terminal will allow merchants to manage and send updates to all of their checkout equipment from a single online account, and customize what shoppers see on the checkout screen. Stripe has recently partnered with payment and commerce solutions company Verifone (PAY), which allows the company to utilize their checkout equipment.
Although Stripe won’t be the first to the market, the company believes they have a leg up to the competition. Its most prominent competitor, Netherlands-based Adyen, recently went public and is now valued at around $21 billion.
Stripe co-founder John Collison recently told Recode that fast-growing, digital-first companies that have recently started expanding into physical retail stores are the primary target for the Terminal. In contrast, Adyen works primarily with large companies, including Burberry, eBay, and Etsy, which are not demographics Stripe currently plans to pursue.
While Collison noted that he believes in the long-term potential of cryptocurrencies in payments platforms, he has no immediate plans to incorporate them across Stripe products. Collison cites the current price volatility as the driving factor behind his reluctance.
Beyond consumer product services, Stripe maintains plans to target business-to-business software platforms that house customers that operate brick-and-mortar chains. Mindbody, which develops software for yoga studios and spas, has recently partnered with Stripe.
Stripe Terminal’s service price starts with a 2.7% fee, and $0.05 is added to each transaction.