Square Inc., the company led by Twitter Inc. Chief Executive Jack Dorsey, on Thursday launched a payment terminal for small business clients, expanding its suite of hardware products.

Square's new touch-screen terminal allows merchants, such as liquor stores and hairdressers, to ring up sales, take credit card payments processed through the company's system and print receipts.

The terminal also accepts mobile phone and other contactless payments via Apple Inc.'s Apple Pay and Alphabet Inc.'s Google Pay.

Square said it believes its new terminal offers a cheaper, more user-friendly alternative to the credit card terminals provided by more established companies.

Businesses will be charged $399 for the device and a fee of 2.6 percent plus 10 cents for every transaction, regardless of the type of payment used.

"Square Terminal is designed from the ground up to ensure a feeling of familiarity, so sellers and their customers can use it right away," Jesse Dorogusker, head of hardware at Square, said in a statement.

The San Francisco-based company made a name for itself through its flagship small credit card reader that turns smartphones into payment terminals. It has been expanding into other lines of business, including consumer lending.

Square also provides invoicing software and other tools for small businesses.