Stripe Moves In-Store With Index Acquisition

Stripe, the $9 billion payments processing startup, has acquired point-of-sale (POS) software developer Index.

Index, which was backed by former Google CEO Eric Schmidt’s venture capital firm Innovation Endeavors, is well-known for its software for PIN pads that is able to read a chip card in under a second.

According to Business Insider, Index’s software will be integrated with Stripe’s offerings, allowing customers’ physical and digital payments data to be stored in one place. The integration will allow Stripe to focus on signing on larger companies that also have deep pockets.

“We really believe so much in the value of integrated technology,” said Stripe CFO Will Gaybrick. “This is really about us working with larger and larger users.”

And those larger customers often have or want a physical presence in addition to an online offerings. Business Insider used the example of prescription eyewear company Warby Parker, which started as an online-only business and eventually expanded to physical stores across the United States.

While Stripe has specialized only in online commerce, enabling apps or websites to accept payments using a credit card or a digital wallet, the Index acquisition will enable Stripe to help its clients set up shop in a traditional store.

Terms of the acquisition were not announced. However, Stripe has offered the majority of Index employees new roles for after the deal closes.

Stripe also revealed that it has already signed on some new customers: German-based insurance company Allianz, valued at about $103 billion USD; Booking.com, the flagship subsidiary of $103 billion Booking Holdings; and Zillow, the real estate search engine valued at $6.75 billion.

They join current customers Amazon, Facebook, SAP and the NFL, as well as startups (and long-time Stripe customers) Lyft, Slack and Kickstarter.