The online payment startup has raised $70M in a new funding round, from investors such as Thrive Capital, Sequoia Capital, Founders Fund, Khosla Ventures and General Catalyst Partners. Stripe is giving a tough fight to competition and trying to make a mark in digital payments, a market which is estimated to reach $90B in total U.S. spending as per Forrester research.
Stripe helps businesses process payments by providing them with APIs that can be integrated into websites and mobile apps to enable credit card acceptance. The company charges a flat fee of 30 cents for each transaction plus 2.9% on the amount transacted. The company has also won successful deals to power “buy” buttons on social networks like Facebook and Twitter. Stripe also closed a deal with Alipay this year to enable online retailers outside China to sell to consumers in the U.S.
Stripe is capitalizing on the changes witnessed in the ecommerce sector, driven by mobile and social network commerce. Stripe was showcased as one of the launch partners for Apple Pay. Stripe is competing with the likes of companies like PayPal, which has long dominated the online payments space. Stripe is already a popular mobile payment app in U.S. and Canada.
Stripe supports around 130 currencies and is increasing its geographic reach - it currently serves 18 countries. Stripe has expanded its operations in recent months, adding Australia, Ireland and UK to its list of countries accepting its online payment system. In other countries, it is successfully operating as an ‘open beta’ version. Stripe is not only focusing on major collaborations but is also targeting different payment domains to enhance its service portfolio.
Stripe has recently focused on development in areas of decentralized payment networks and crypto-currencies. Earlier this year, Stripe invested $3M in Stellar, a decentralized payment network and protocol which supports traditional currencies as well. The company intends to use the fresh funds for its global expansion. Stripe is aiming at enabling consumers in any country to shop at merchants around the world using local currencies. Since its inception, the company has raised $200M. Earlier this year, in January, Stripe had raised $80M.
Stripe is an effective and flawless tool when it comes to day-to-day business transactions. Even at Let’s Talk Payments, we trust Stripe for our payment processing needs.