Over the past year it has doubled in size to 380 employees and snatched investments that value it at $5 billion, up from $3.5 billion a year earlier. (Recently public Square is worth $4 billion.) Once a U.S.-only service that had to beg for an audience with a bank, Stripe has expanded to 23 countries and is routinely striking partnerships with the likes of Visa, Apple Pay and Alibaba. Facebook, Twitter and Pinterest have chosen Stripe to power their e-commerce efforts, and traditional retailers like Best Buy and Saks Fifth Avenue picked Stripe for their forays into mobile. Slack recently turned over its payments to Stripe after ditching a rival product. ... Industry sources put Stripe’s payment volume at about $20 billion a year. For every transaction it processes, Stripe in the U.S. gets a swipe fee of 2.9% plus 30 cents, roughly the same as other payment firms such as Square, though large customers get volume discounts. That would peg Stripe’s revenue at more than $450 million. The company says that 27% of Americans will have bought something through Stripe in the past year, a big bump from just 3.8% two years ago. ... Stripe’s success at making digital payments easy to process is only a step toward its larger ambition: becoming the edifice upon which new forms of commerce are created. Think Amazon Web Services (which supports all kinds of Internet businesses) but focused on financial transactions. ... The company faces formidable rivals. Braintree, which is owned by PayPal , has said it will process some $50 billion in 2015
Seven years in, however, Stripe’s mission is less to send more books, vacuums, and grooming kits into the world than to “increase the GDP of the internet,” Patrick says. To do this, the company is beginning to move beyond payments by writing software that helps companies retool the way they incorporate, pay workers, and detect fraud. It’s part of an ambitious bid to revamp how online business has been conducted for 20 years and to give anyone with a bright idea a chance to compete. ... With Stripe, all a startup had to do was add seven lines of code to its site to handle payments: What once took weeks was now a cut-and-paste job. Silicon Valley coders spread word of this elegant new architecture. ... Although startups appreciated what Stripe was doing, most potential investors did not. How was a small group of young engineers going to alter the internet’s financial structure? Hadn’t they heard of PayPal?