Stripe (company)

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Stripe
Stripe logo, revised 2014.png
Founded September, 2011
Area served USA, Canada, UK, Republic of Ireland, Australia, Austria, Belgium, Denmark, Germany, Finland, France, Italy, Mexico, Norway, Spain, Sweden, Switzerland, Netherlands, Luxembourg
Founder(s) Patrick Collison
John Collison
CEO Patrick Collison
Industry Payment processor
Employees 210 (February, 2015)[1]
Website stripe.com
Current status Active

Stripe is an American company that allows both private individuals and businesses to accept payments over the Internet. Co-founded by Irish brothers Patrick and John Collison, the company has received $190 million in funding; investors include some of the largest technology venture capital firms, including Sequoia Capital, General Catalyst Partners, Andreessen Horowitz, Founders Fund, Khosla Ventures, and PayPal co-founders Elon Musk, Peter Thiel, and Max Levchin.[1][2] Stripe’s most recent funding round took place in March, 2014, which put it at a valuation of $3.57 billion.[3] Their next round of funding is proposed to be at a valuation of $5 billion.[4]

Unlike other payment services, including PayPal and fully integrated e-commerce solutions such as Shopify, Stripe specifically focuses on providing the technical, fraud prevention, and banking infrastructure required to operate online payment systems.[5] Notable online companies that use Stripe as their default payment processor include Fitbit, Kickstarter, reddit, Twitter, Wired, Salesforce.com, Squarespace, and The Guardian.[6]

Payment logistics[edit]

With Stripe, web developers can integrate payment processing into their websites without having to register and maintain a merchant account.[7] Stripe, in line with its competitors, charges a fee of 2.9% + $0.30 per successful credit card charge.[8] Unlike most of its competitors, however, Stripe does not charge setup fees, monthly fees, validation fees, card storage fees, or failed payment fees. Furthermore, there is no minimum monthly payments volume required to use Stripe.[8]

Stripe has a seven-day waiting period for transactions, during which time it profiles the businesses involved to protect against potential fraud. Stripe then transfers the funds directly into the bank account linked to the payee.[9]

Availability[edit]

Stripe supports payments in 19 countries. In January 2014, Stripe announced an open beta for Australia, Belgium, Finland, France, Germany, Luxembourg, the Netherlands, and Spain. The company is growing faster internationally than in the United States.[10] As of May 2015, Stripe is used by over 17,000 websites.[11]

History[edit]

Early Days[edit]

In early 2010, John and Patrick Collison began working on Stripe with the goal of simplifying online transactions through an easy-to-use, consumer-friendly interface.[9] Stripe began as a startup called /dev/payments. The name resulted in misspellings and confusion to those outside the company, so the company renamed itself Stripe.[12]

In June 2010, Stripe received seed funding from Y Combinator, a startup accelerator.[1] In May 2011, Stripe received a $2 million investment from venture capitalists Peter Thiel, Sequoia Capital, and Andreessen Horowitz.[13] In February 2012, Stripe received a $18 million Series A investment led by Sequoia Capital at a $100 million valuation.[14]

Post-launch[edit]

On September 29, 2011, Stripe launched publicly after an extensive private beta.[15] Less than a year after its public launch, Stripe received a $20 million Series B investment from General Catalyst, Sequoia Capital, Peter Thiel, Redpoint Ventures, Chris Dixon, and Aaron Levie.[16] On March 11, 2013, Stripe acquired chat and task-management application Kickoff, bringing its staff-in-house to focus expanding Stripe’s design team.[17]

2014 to Present[edit]

In January 2014, Stripe received an $80 million Series C investment from Sequoia Capital, Founders Fund, Khosla Ventures, and Allen & Co. at a $1.75 billion valuation.[10] Later that year, Stripe received an additional $70 million in Series D investment from Thrive Capital (round leader), Sequoia Capital, Founders Fund, Khosla Ventures and General Catalyst Partners, bringing the company to a valuation of $3.57 billion.[18]

In March 2014, CEO Patrick Collison announced that Stripe would support Bitcoin transactions.[19] The announcement detailed that Stripe would automatically calculate costs incurred for customers in Bitcoin in comparison to a customer’s local currency, and that payments would be delivered to bank accounts within seven days.[20]

In February 2015, Stripe launched support for Bitcoin transactions.[21]

In April 2014, Stripe launched its Open Source Retreat program in an effort to give back to the web development community that it benefits from and caters to. The program consists of awarding up to three grants to sponsor selected developers to work on open-source project over a three-month period. The grant includes a salary of US$7,500 per month, in addition to access to Stripe’s office space in San Francisco. Libscore, an analytics tool for web development tools developed, is a result of this grant program.[22] The other alumni of the program include Velocity.js (a web animation engine), Python’s urllib3 (an http processing library, and Ruby’s CocaoPods (a dependency resolver library).[23]

In June 2014, Stripe launched a beta program to support Alipay, opening its payment processing services to customers from China.[24]

In October 2014, Stripe became one of the first payment providers whose software development kits support Apple Pay integration in iOS apps.[25][26] In March 2015, Stripe relaunched its Stripe Connect service, allowing the users of its marketplace and payment platform customers to accept credit and debit card payments.[27]

Features[edit]

Stripe’s back-end API supports a variety of programming languages and environments, including: Go, Java, Node.js, PHP, Python, and Ruby [28]

In addition to one-time payments, Stripe allows its users to charge their customers on a recurring basis at annual, monthly, weekly, or custom intervals. Customers can also offer trial periods of arbitrary durations, with recurring payments commencing immediately after this period completes. Further, coupons can be issued in a variety of configurations.[29]

Checkout[edit]

Stripe’s Checkout product consists of an embeddable payment form that developers can quickly integrate into their websites without having to undergo extensive technical implementations.[30]

Connect[edit]

Connect is a tool that allows Stripe customers that operate marketplaces or payment platforms to provide their users with seamless payment processing.[31] Connect verifies the identity of the sellers and ensures they are compliant with their local laws. Stripe also handles paying the sellers. It is currently only available in the United States and Canada, but Stripe plans to expand to more markets.[32] Notable clients include Doordash, Instacart, Kickstarter, Lyft, Postmates, Shopify, and Squarespace.[31]

Bitcoin[edit]

Stripe supports Bitcoin transactions, similarly to how it does traditional currencies. Customers authorize payments using their Bitcoin wallet or service of choice.[33] Stripe charges 0.5% per successful Bitcoin transaction.[34]

Alipay[edit]

Stripe has a beta program to support Alipay, opening its payment processing services to customers from China. Customers can pay via the web and via mobile devices using SMS authentication.[35]

Apple Pay[edit]

Stripe’s Software development kits support Apple Pay integration in iOS apps.[36] Stripe’s Apple Pay enables one-touch credit card payments on iOS devices equipped with a Touch ID sensor. [37]

Security[edit]

Stripe’s payment processing meets PCI-DSS requirements, reaching Certified PCI level 1. No sensitive customer data reaches client’s servers, removing clients from potential liability issues.[38]

Industry competitors[edit]

See also[edit]

References[edit]

  1. ^ a b c "How Stripe Marketed to Developers So Effectively". GrowthHackers. Retrieved May 5, 2015. 
  2. ^ https://www.crunchbase.com/organization/stripe
  3. ^ "Stripes valuation rises to $3.6 billion with $70 million round". WSJ. December 2, 2014. 
  4. ^ "Stripe in talks for up to $500 million in new funding". TechCrunch. May 20, 2015. 
  5. ^ "Stripe". CNBC. 
  6. ^ "Gallery". Stripe. 
  7. ^ Carr, Austin (February 1, 2012). "Inside Stripe, The Paypal Competitor Backed By Paypal Founders Peter Thiel, Elon Musk". FastCompany. Retrieved April 2, 2014. 
  8. ^ a b "Stripe: Pricing". Stripe. 
  9. ^ a b "The Collison Brothers and Story Behind The Founding Of Stripe". Startup Grind. February 9, 2012. Retrieved April 2, 2014. 
  10. ^ a b Rao, Leena (January 22, 2014). "Eyeing International Growth, Stripe Raises $80M From Founders Fund, Khosla And Sequoia At A $1.75B Valuation". TechCrunch. Retrieved April 2, 2014. 
  11. ^ Template:Cite nw
  12. ^ Brockman, Greg (April 2, 2014). "How Did Stripe Come Up With Its Name?". Forbes. Retrieved April 2, 2014. 
  13. ^ Arrington, Michael (March 28, 2011). "Stealth Payment Startup Stripe Backed By PayPal Founders". TechCrunch. Retrieved February 14, 2014. 
  14. ^ Mitroff, Sarah (February 9, 2012). "Stripe attracts $18M in funding at $100M valuation". VentureBeat. Retrieved February 14, 2014. 
  15. ^ "Stripe: instant payment processing for developers". Hacker News. September 29, 2011. Retrieved February 14, 2014. 
  16. ^ Tsotsis, Alexia (July 9, 2012). "Sexy Payments Startup Stripe Swipes $20M From General Catalyst, Sequoia, Thiel And More". TechCrunch. Retrieved February 14, 2014. 
  17. ^ Rao, Leena. "Payments Company Stripe Makes First Acquisition, Buys Team Task Management And Collaboration App Kickoff". TechCrunch. Retrieved 16 January 2014. 
  18. ^ "Stripes valuation rises to $3.6 bilion with $70 million round". WSJ. December 2, 2014. 
  19. ^ Del Rey, Jason (March 27, 2014). "Stripe Merchants Will Soon Be Able to Accept Bitcoin Payments". Recode. Retrieved April 2, 2014. 
  20. ^ "How long do transfers take?". Stripe. Retrieved May 7, 2014. 
  21. ^ "Stripe finally launches support for Bitcoin". VentureBeat. February 19, 2015. 
  22. ^ "Libscore launches to track the most popular javascript libraries on the web". VentureBeat. December 16, 2014. 
  23. ^ "Open Source Retreat Grantees". Stripe. 
  24. ^ "Stripe CEO Patrick Collision Techonomy". Forbes. November 10, 2014. 
  25. ^ "Apple Pay for Developers". developer.apple.com. Apple Inc. 
  26. ^ https://stripe.com/blog/apple-pay
  27. ^ "Stripe re-launches Stripe Connect to help on-demand startups go global". VentureBeat. March 23, 2015. 
  28. ^ "Features". Stripe. 
  29. ^ "Features". Stripe. 
  30. ^ "Checkout". Stripe. 
  31. ^ a b "Stripe Connect". 
  32. ^ "Stripe Relaunches Stripe Connect". www.venturebeat.com. Venturebeat. 
  33. ^ "Stripe Bitcoin". www.stripe.com. Stripe. 
  34. ^ "Stripe-Bitcoin payments option to the pubic". Coindesk. 
  35. ^ "Stripe CEO Patrick Coision Techonomy". Forbes. November 10, 2014. 
  36. ^ "Apple Pay". Developer.Apple.com. 
  37. ^ "Apple Pay". Stripe blog. 
  38. ^ "Features". Stripe. 

External links[edit]