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We all love using credit and debit cards to pay both online and offline. Life is easier now because we don't need to carry cash anymore with us. Before, it was difficult to pay through websites as it involved a few expenses. But now everything has changed!
Stripe is a leading processor in online payments. It is an American software as a service and financial services company. The company offers application programming interfaces for e-commerce websites and mobile applications and it is a payment processing software. Read the Stripe success story below.
Stripe - Company Highlights
| Company Name | Stripe |
|---|---|
| Headquarters | San Francisco, California, United States |
| Sector | SaaS, Internet and Software |
| Founders | Patrick Collison and John Collison |
| Founded | 2010 |
| Website | stripe.com |
Stripe - About
Stripe - Startup Story
Stripe - Founders and Team
Stripe - Business Model
Stripe - Revenue Model
Stripe - Funding and Investors
Stripe - Growth
Stripe - Competitors
Stripe - Future Plans
FAQs
Stripe - About
Stripe is a company that builds economic infrastructure for the Internet. Companies like Facebook use the company's software to approve online fees and operate complex global strategies. It is very useful for small businesses and new startups. The company aims to help more companies to get started and grow the GDP of the internet.
Stripe - Startup Story
The two Collison brothers started working on Stripe together in 2010. During that period, Patrick was working on various side projects and they argued that why was it so difficult to accept fees on the web. The brothers thought of solving the problem and finding a solution to make it simple. The next six months Collison brothers dealt with it, showed it to the friends and noticed how people were interacting with it all along. Within two weeks of building the application, the brothers had their first transaction with a company named as 280 North. The founder of the company was the first customer and he joined Stripe. He was the first employee of Stripe.
Stripe - Founders and Team
The founders of Stripe are the two brothers - Patrick Collison and John Collison.
- Patrick Collison is an Irish entrepreneur and billionaire. He is the co-founder and the CEO of Stripe. He is the elder brother and at the age of sixteen, he won the 41st Young Scientist and Technology Exhibition in 2005.
- John Collison is also an Irish entrepreneur and billionaire. He is the co-founder of Stripe. He is the younger brother.
Stripe - Business Model
The company is having a product business model. It offers secure, fast and simple online transactions for businesses. It is a payment processor that can be incorporated into mobile applications and websites. It does not charge a monthly fee and it is only available for the businesses. Stripe provides fraud prevention and banking infrastructure to facilitate payments over the web. It does not allow consumers' payment information to pass through the merchant's server. The information is only accessible to Stripe. This proves that the application is safe and it reduces the amount of risk.
Stripe - Revenue Model
The revenue model is very simple here. It earns from the fees it charges to its customers. The fees always vary based on the value of the payments. The revenue model has been constant since day one. The company has got different packages on the selected products. For every transaction, the company charges a 2.9 or a 0.30 per cent fee. This is a fixed fee which is applied to every successful transaction done through their site. For international transactions, the company charges more 1 per cent to it which becomes 3.9 per cent.
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Stripe - Funding and Investors
14 Rounds of funding -
| Date | Transaction Name | Money Raised | Lead Investors |
|---|---|---|---|
| May 28, 2020 | Secondary Market | - | - |
| April 16, 2020 | Series G | $600 million | - |
| September 19, 2019 | Series G | $250 million | General Catalyst and Andreessen Horowitz |
| January 29, 2019 | Series E | $100 million | Tiger Global Management |
| September 27, 2018 | Series E | $245 million | Tiger Global Management |
| November 25, 2016 | Series D | $150 million | General Catalyst and CapitalG |
| July 31, 2015 | Series C | $100 million | - |
| December 2, 2014 | Series C | $70 million | Thrive Capital |
| May 15, 2014 | Series B | $3.2 million | - |
| January 22, 2014 | Series C | $80 million | Founders Fund |
| July 9, 2012 | Series B | $20 million | General Catalyst |
| February 9, 2012 | Series A | $18 million | Sequoia Capital |
| March 28, 2011 | Seed Round | $2 million | - |
| August 2, 2010 | Seed Round | - | Y Combinator |
The company is funded by 30 investors. General Catalyst is the most recent investor.
Stripe - Growth
The mission of the company is to increase the GDP of the internet. The company is growing through the relationships it has made with its customers. During the pandemic, the company generated $1 billion in revenue. Three months later the revenue was $9 billion.
Stripe - Competitors
The top competitors of Stripe are PayPal, Square and Adyen.
- PayPal is the top competitor of Stripe. It is headquartered at San Jose, California and was founded in 1998. It is a Public company. It operates in the Fintech field.
- Square is also one of the competitors of Stripe. It is headquartered at San Francisco, California, USA. It was founded in 2009. It also works in the Fintech field.
- Adyen is one among the top rivals of Stripe. It is headquartered at Amsterdam, Noord-Holland. It was founded in 2006. The company operates in the Fintech sector.
Stripe - Future Plans
Stripe is planning to expand across Asia including Japan, China, Southeast Asia and India. It is aiming towards boosting its staff by 40 per cent in 2021.
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FAQs
What is Stripe?
Stripe Payments is a payment processing platform. It allows you to transfer money from a customer's bank account into your business's account by way of a credit or debit card transaction.
Is stripe safe for payment?
Yes
How does Stripe work technically?
Stripe is a PSP (Payment Service Provider) that lets business owners collect payments, including recurring payments, and transfer them directly to their own account instantly. It processes the payment, checks for fraud, and takes a fee of 2.9% plus 30 cents.
What Is the Biggest Difference Between Stripe vs PayPal?
One of the biggest differences is the type of user they're designed for. For example, Stripe was built with developers in mind and is ideal if you want a payment processor that offers a lot of customization and developer tools. PayPal is a better option if you're looking for a simple, straightforward solution for accepting payments through your website.
Can You Use Both Stripe and PayPal for Your Website?
If you don't want to choose between which payment processor you use, using both to accept payments is an option. The benefit of this is that you're able to let your customers select their preferred method of payment at checkout. On the other hand, managing your business finances on multiple platforms can be challenging and may lead to unnecessary costs.
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