Stripe’s Innovation is Changing the Payment Industry
Stripe, one of the leading online payment platforms, was recently recognized as a Unicorn by CB Insight’s Global FinTech Report. The company is currently valued at $22.5 billion. This should come as no surprise, as the company has been experiencing rapid growth since its launch in 2010.
The company is headquartered in San Francisco with offices in 13 countries and operations in 34. In early August, Stripe announced its first office in Latin America, taking advantage of the exploding FinTech scene in the South American continent.
Stripe is a third-party payment processing startup founded by a pair of visionary co-founders. Their goal: to make it easy for a business to collect money online. Also, while Stripe does accept credit card payments, that’s only one of the many parts of their ecosystem.
The company has invested heavily in its tools and reliability. Their developer tool set is the strongest in the payment processing industry, allowing SaaS and eCommerce, businesses to take full advantage of online sales. The company even offers 24/7 customer support.
Stripe prides its self in creating easy to implement solutions that is based in code and not in finance. Their API platform allows developers to quickly implement the tool in multiple coding languages. For small businesses that may not have the need for a full development team, Stripe offers 300 different partners that it can be automatically integrated with.
Since its launch, Stripe has become the preferred payment processor for some of the biggest online companies in the world: Lyft, Wish, Blue Apron, and Task Rabbit are only a few of the top names. The company states that 89% of cards that their merchants’ process have been used previously on the Stripe platform with another business. ‘That’s an incredible level of saturation for a company ‘that’s only been around for nine years.
Its key players aren’t just limited to the companies it services. Its valuation of $22.5 billion comes from well-known investors such as Andreessen Horowitz, Peter Thiel, Elon Musk, and Google.
In 2019 Stripe has expanded into five new countries: Estonia, Greece, Poland, Latvia, Lithuania, and Malaysia. Then in August, the company announced its first office in Mexico City. They hope to take advantage of the booming eCommerce growth in the region in combination from the extensive engineering tech scene in MXCD.
In an interview with CNBC, Billy Alvarado, Stripe’s Chief’s Business Officer, reiterated the need for mobile payment expansion in South America.
Stripe will work with well known FinTech card companies like Visa, Mastercard and America Express, along with smaller Latin startups that focus on the unbanked.
Only 10% of business is performed online, so the opportunities for payment processing companies are wide-open. Stripe has positioned itself in a prime spot to take advantage of the growth, especially with a $100m influx of investment capital from Tiger Global. Stripe is going to expand rapidly and be at the forefront of the industry.
Alvarado confirms that vision: