Invest in Stripe

Stripe is renowned for its user-friendly payment processing software, seamlessly integrating with diverse e-commerce platforms and payment methods. Its suite of services encompasses payment processing, fraud prevention, and subscription management tools, complemented by supplementary offerings such as billing and invoicing software, reporting and analytics, and customer management tools.

Stripe’s core business is primarily focused on facilitating online payments, offering a range of services from standard one-to-one transactions, Stripe Payments, to intricate multi-party payments facilitated by platforms and marketplaces, Stripe Connect.

With Stripe Payments, businesses can effortlessly integrate APIs to accept online payments from a global customer base. By signing up for Stripe and connecting their bank account, companies gain access to a diverse array of payment options including credit cards, digital wallets, BNPL (Buy Now Pay Later) services, and bank transfers, simplifying the process of receiving payments from customers worldwide.

Stripe Checkout provides a prebuilt payment form optimized for conversion. Companies can embed Checkout into their website or direct customers to a Stripe-hosted page to easily and securely accept one-time payments or subscriptions.

Stripe Elements provides a suite of rich user interface (UI) building blocks that allow companies to design custom and secure payment experiences on their site.

Stripe Payment Links allow companies to sell online without a website. Users can create a full payment page in just a few clicks and share the link with their customers—no code required.

Stripe Radar detects and blocks fraud using machine learning that trains on data across millions of global companies. Radar is built into Stripe and is seamlessly integrated with other products, like Checkout, so users can access the full Stripe platform.

Stripe Connect is the fastest and easiest way to integrate payments into a platform or marketplace. Stripe Connect APIs enable customers to build and scale end-to-end payment experiences, from instant onboarding to global payouts, and create new revenue streams—all while having Stripe handle payments KYC.

Stripe Billing allows companies to bill and manage their customers however they want—from simple recurring billing to usage-based billing and sales-negotiated contracts. Stripe Billing allows companies to start accepting recurring payments in minutes, use Invoicing to collect payments from existing customers, or share a payment link to sell a subscription—no code required.

Billing integrates with Revenue Recognition and Invoicing for accounting and invoicing purposes and automatically retries failed payments using a machine learning system called Smart Retries, which recovers 57% of failed payments volume according to Stripe.

Stripe Terminal enables businesses to unify online and in-person payments. Stripe Terminal provides platforms and enterprises with developer tools, pre-certified card readers, Tap to Pay on compatible iPhone and Android devices, and cloud-based device management.

Stripe Financial Connections streamlines the process for businesses to access users' financial information without requiring custom integrations for each individual financial institution. This simplifies account verification and enables businesses to easily view balances and transactions.

Stripe Identity enables companies to programmatically confirm the identity of global users so they can prevent attacks from fraudsters while minimizing friction for legitimate customers.

Stripe Atlas helps founders launch a startup in a reliable, safe, and fast manner, from anywhere in the world. With Stripe Atlas, founders can form a Delaware C Corporation or Limited Liability Company (LLC), obtain a U.S. Employer Identification Number (EIN), and, in the case of a C Corporation, issue stock to founders.

Stripe’s product suite has expanded to match the breadth of its users and now solves many payments-adjacent problems like tax and revenue recognition, climate carbon removal, treasury, card issuance, lending, and fiat-to-crypto onramp.

Stripe is free to set up and the company does not charge a monthly or annual fee for its services. Instead, the Company’s model features usage-based pricing, and all Stripe fees are per transaction with transparent pricing. Online sales and payments cost businesses 2.9% plus 30 cents per transaction. There is an additional 1.5% fee for international cards and a 1% fee if currency conversion is required.

Stripe charges similar fees for its other product offerings including 0.4% per invoice for Stripe Invoicing, 0.5% per transaction for Stripe Tax, $1.50 per verification for Stripe Financial Connections, and $0.03 per transaction for Stripe Data Pipeline, as examples.

Stripe also generates revenue from its higher-margin banking-as-a-service offerings including Treasury, Issuing, and Capital. Stripe earns loan fees through its Capital business and interchange fees through its Issuing business.

Collectively, the businesses running on Stripe passed the milestone of $1 trillion in total payment volume in 2023, up 25% from the prior year. U.S. e-commerce grew 7.6% in 2023. At $1 trillion, the output of businesses that run on Stripe sums to roughly 1% of global GDP, as most Stripe users sell “final” goods, which are those that count toward GDP.

Stripe was cash flow positive in 2023 and expects to be again in 2024. According to The Information in December of 2023, “Stripe’s net revenues—what the firm takes in from payments it processes after it passes a large cut to credit card companies and other financial institutions—grew by about 35% to roughly $1 billion in the third quarter. Stripe generated more than $150 million in operating income in the quarter, excluding stock-based compensation expenses, and nearly $200 million in the first nine months.”

In 2023, Stripe added support for more than 50 new payment methods, taking the total supported methods to over 100, and Stripe’s optimized checkout suite now includes over 100 optimizations.

Stripe’s Revenue and Finance Automation (RFA) suite, which brings together Billing, Tax, and Revenue Recognition is used by hundreds of thousands of businesses, and the Company expects the suite’s annual revenue run rate to pass $500 million in 2024.

Stripe announced in March of 2024 that its enterprise segment continues to grow rapidly, with more than 100 companies now processing more than $1 billion per year with Stripe.

In June 2023, Stripe announced a new charge card program for Stripe Issuing, Stripe’s commercial card issuing product. With the addition of charge cards, fintechs and platform companies can create and distribute virtual or physical charge cards that allow their customers to spend on credit rather than the funds in their accounts—providing new revenue streams for platforms and allowing them to offer new financing capabilities to their customers.

In June 2023, Stripe announced a partnership with Google Workspace to power paid appointment bookings with Google Calendar. The new feature, which is built on Stripe Connect and Stripe Checkout, enables customers to pay for services directly while making a booking on a Google Calendar booking page.

In November 2023, from Black Friday through Cyber Monday (BFCM), Stripe announced that it processed more than 300 million transactions with a total payment volume of more than $18.6 billion. It was the largest ever four-day period on Stripe.

In November 2023, Stripe launched Climate Orders, which makes it easy for any business to pre-order carbon removal tons via Frontier, an advance market commitment (AMC) cofounded by Stripe. Climate Orders is part of the Stripe Climate product offering, which now includes two ways for companies to purchase Frontier-vetted carbon removal.

In February 2024, Stripe announced that it has signed agreements with investors to provide liquidity to current and former Stripe employees through a tender offer at a $65 billion valuation. While the majority of funds for the tender offer are being provided by investors, Stripe will also use a portion of its own capital to repurchase shares to offset dilution from the Company’s employee equity compensation programs. In February of 2024, Fortune reported that “Stripe shares were trading at an average of $28 a share, suggesting a valuation glow-up to nearly $70 billion.”