Stripe (company)

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Stripe
Founder(s) Patrick Collison
John Collison
Area served USA, Canada, UK, Republic of Ireland, Australia, Finland, Belgium, Germany, France, Spain, Switzerland, The Netherlands, Luxembourg
Employees 134 (June, 2014)[1]
Website stripe.com

Stripe is a company that provides a way for individuals and businesses to accept payments over the internet. Co-founded by brothers Patrick and John Collison, the company has received $130 million in funding; investors include Sequoia Capital, General Catalyst Partners, Andreessen Horowitz, Founders Fund, Khosla Ventures, and PayPal co-founders Peter Thiel, Max Levchin, and Elon Musk.[2]

Business[edit]

Developers can embed Stripe's API on their websites to accept payments, instead of getting a merchant account.[3]

Stripe charges a fee of 2.9% + $0.30 per successful charge.[4] This rate is higher than the rate charged by conventional credit card processors,[citation needed] but Stripe says the total cost to its customers may be lower, because Stripe has no setup fees, monthly fees, minimum charges, validation fees, card storage fees, or charges for failed payments.[4] Stripe has a 7-day waiting period for transactions to approve, so that Stripe can profile the businesses involved and detect fraud.[5]

Stripe supports payments in 12 countries and plans to support 200. 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.[6]

The company's software is used in mobile applications including Lyft and Instacart, including for direct payments to Lyft drivers.[7]

Paul Graham wrote an article saying that processing payments online is "one of the most important components of the world's infrastructure" but a "painful" experience, and that Stripe is trying to fix that problem.[8]

Stripe has said that it is committed to transparency and will post legal requests from a third party to stop doing business with a user to the Chilling Effects Clearinghouse website.[9]

History[edit]

In early 2010, John and Patrick Collison began working on Stripe after discussing why making payments on the web was so difficult. Their goal was to simplify online transactions and create an easy to use interface.[5] Stripe began as a startup called /dev/payments, which then changed its name to SLASHDEVSLASHFINANCE. The newer name resulted in misspellings and confusion to those outside the company, so the company renamed itself Stripe.[10]

In January 2010, Stripe received seed funding from Y Combinator.[2]

In mid-2010, Stripe received a $2 million investment from Peter Thiel, Sequoia Capital, and Andreessen Horowitz.[11]

In May 2011, Stripe received a $18 million Series A investment led by Sequoia Capital at a $100 million valuation.[12]

On September 29, 2011, Stripe launched publicly after an extensive private beta.[13]

In May 2012, Stripe received a $20 million Series B investment from General Catalyst, Sequoia Capital, Peter Thiel, Elad Gil, Redpoint Ventures, Chris Dixon, and Aaron Levie.[14]

On March 11, 2013, Stripe acquired chat and task-management application Kickoff.[15]

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.[16]

In March 2014, CEO Patrick Collison announced that Stripe would support Bitcoin transactions.[17] The announcement included that Stripe would automatically calculate costs incurred for customers in Bitcoin in comparison to their local currency, and that payments would be delivered to bank accounts within seven days.[18] The charges for these transactions were not yet announced.[17] Stripe also announced plans to process payments via Automated Clearing House, which would allow merchants to set up payments against a customer's bank account in the United States.[19]

See also[edit]

References[edit]

  1. ^ "Stripe Press resources". 
  2. ^ a b "Press resources". Stripe. Retrieved February 14, 2014. 
  3. ^ Carr, Austin (February 1, 2012). "Inside Stripe, The Paypal Competitor Backed By Paypal Founders Peter Thiel, Elon Musk". FastCompany. Retrieved April 2, 2014. 
  4. ^ a b "Stripe: Pricing". Stripe. 
  5. ^ a b "The Collison Brothers and Story Behind The Founding Of Stripe". Startup Grind. February 9, 2012. Retrieved April 2, 2014. 
  6. ^ 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. 
  7. ^ MacMillan, Douglas (January 22, 2014). "Payments Startup Stripe Joins the Billion Dollar Club". Wall Street Journal. Retrieved April 2, 2014. 
  8. ^ Paul Graham. "Schlep Blindness". 2012.
  9. ^ Payment Processor Stripe Buys Into Transparency and User Rights By Ryan Singel, Wired 09-28-12
  10. ^ Brockman, Greg (April 2, 2014). "How Did Stripe Come Up With Its Name?". Forbes. Retrieved April 2, 2014. 
  11. ^ Arrington, Michael (March 28, 2011). "Stealth Payment Startup Stripe Backed By PayPal Founders". TechCrunch. Retrieved February 14, 2014. 
  12. ^ Mitroff, Sarah (February 9, 2012). "Stripe attracts $18M in funding at $100M valuation". VentureBeat. Retrieved February 14, 2014. 
  13. ^ "Stripe: instant payment processing for developers". Hacker News. September 29, 2011. Retrieved February 14, 2014. 
  14. ^ Tsotsis, Alexia (July 9, 2012). "Sexy Payments Startup Stripe Swipes $20M From General Catalyst, Sequoia, Thiel And More". TechCrunch. Retrieved February 14, 2014. 
  15. ^ Rao, Leena. "Payments Company Stripe Makes First Acquisition, Buys Team Task Management And Collaboration App Kickoff". TechCrunch. Retrieved 16 January 2014. 
  16. ^ Rao, Leena (January 22, 2014). "Eyeing International Growth, Stripe Raises $80M From Founders Fund, Khosla And Sequoia At A $1.75B Valuation". TechCrunch. Retrieved February 14, 2014. 
  17. ^ a b Del Rey, Jason (March 27, 2014). "Stripe Merchants Will Soon Be Able to Accept Bitcoin Payments". Recode. Retrieved April 2, 2014. 
  18. ^ "How long do transfers take?", Stripe. Retrieved May 7, 2014.
  19. ^ Tweney, Dylan (January 16, 2014). "Stripe now supports Bitcoin-plus something useful". Retrieved April 2, 2014. 

External links[edit]