Challenge

Lopay’s founders wanted to improve the point-of-sale experience for sole proprietors and small businesses. From the outset, the Lopay team counted on Stripe’s reliable and scalable infrastructure. Because many of the businesses using Lopay were mobile-first, it wanted to offer a payment acceptance option that relied on a smartphone, without an additional piece of hardware, to cut down on the number of devices businesses had to remember to charge and bring with them.

Dedicated to helping businesses grow, Lopay wanted to ensure that its users wouldn’t miss any opportunity to get paid. It needed a payment acceptance method that was fast and easy to adopt—and it had to use best-in-class security practices so businesses and their customers could be confident in the integrity of their payments. In addition, Lopay needed a solution that would support its dedication to delivering fast payouts.

Solution

Lopay saw Tap to Pay, which was already offered through Stripe Terminal, as the next evolution in its offering. Tap to Pay allows users to accept all types of in-person, contactless payments right on their compatible smartphone—from physical debit and credit cards to Apple Pay and other digital wallets—with no extra hardware needed.

Built into the Stripe Terminal SDK, Tap to Pay requires just a few steps for integration—enabling Lopay to go live with Tap to Pay within a week of its availability.

Lopay businesses were able to start accepting payments in a matter of minutes, with no additional setup or reader logistics. Visa’s payment security standards ensured every transaction was protected, making Tap to Pay a powerful addition to Lopay’s offerings.

Results

Sales growth for Lopay and its businesses

Today, Lopay’s average transaction amounts with Tap to Pay are roughly the same as other payments processed through Lopay. “It shows that people are using Tap to Pay as part of their day-to-day payment acceptance,” said Ollie Mahoney, Lopay’s cofounder and chief technology officer. “It’s becoming a primary way of accepting payments–it’s now the go-to choice for a lot of merchants.”

In fact, one in five payments to mobile-based businesses like taxi drivers and traveling beauticians using Lopay are made with Tap to Pay. Across the board, Tap to Pay has driven sales growth for both Lopay and its businesses. “If our customers can accept more payments and do more business, then they win and we win as well,” Mahoney said.

Faster onboarding boosts adoption

Before Lopay rolled out Tap to Pay, businesses had to order and receive hardware before they could accept face-to-face payments. Now, once they’ve completed the efficient onboarding process in Lopay’s app, enabled by Stripe Connect, they can immediately accept in-person, contactless payments on their iPhone or Android device.

With no need for additional hardware and fast onboarding, Lopay has seen greater growth in Tap to Pay use than initially anticipated. Though the company expected 10% to 20% of businesses to adopt Tap to Pay, it found that 50% were doing so within a week of onboarding. “It’s far more than we expected,” said Mahoney. “And we think that’s happening because it’s so easy to use—it’s baked into our user experience.”

Enhancements to mobile business operations

Without the need for additional payment terminals, businesses can now accept contactless payments via smartphones, giving them more freedom.

Lopay’s app also means businesses have access to funds right away. With the addition of Stripe Issuing, Lopay made it even easier for businesses that want to run their entire operation from their iPhone. Like all payments received through Lopay, those received via Tap to Pay are immediately available as balances on the Lopay Visa card. In addition to supporting businesses’ cash flow management, this arrangement makes it even simpler for Lopay businesses to offset processing fees with the rewards points they earn every time they use their card.

For example, a taxi driver can add the Lopay Visa card in their Apple Wallet. Then they can accept payment via Tap to Pay and instantly use those earnings to refuel, paying with Apple Wallet. “There's no need for any sort of hardware, there’s no delay in getting your earnings, and it’s all happening directly from your smartphone,” said Mahoney. “That just feels like the future of how small businesses should operate."