Paypal has made it where we can safely conduct financial business and personal tasks all without sharing our banking information. However, it looks like Paypal’s encountering a company that is finally taking them out of their comfort seat. Irish brothers John and Patrick Collison founded Stripe. You probably have never heard of Stripe before, but this invisible new billion dollar company is changing how we pay online. Stripe is an online payment startup based in Europe that is only growing bigger in the four years it has been around.
The company has grown quickly from its humble beginnings with just ten employees in 2011. They employ over 300 people now, but the brothers believe they still have a lot of barriers to overcome. One of the brothers mentioned that if you were to examine how different the current Stripe is compared to when they were starting out years ago, they are just scratching the surface of the range of complications there are. However, they will continue to make a strong company.. Even though it is simpler to construct an online business today on almost every front, co-founder and CEO John Collision stated that payment processing remain dominated by clunky legacy players.
Earlier this year, the company raised new funds up to a $5 billion valuation after partnering with Visa. Visa isn’t the only card companies noticing the value of the new company. American Express and Sequoia Capital are also known investors.
Stripe is also talking about bringing their work over to other countries in Southeast Asia and Latin America. Their goal is to expand their services in the year 2016. One of the brothers, John, believes there will be better success if it were in Europe. The two brothers predict great success because of their current technology. If Europe were a country, it would have easily been the largest gross domestic product (GDP) around the world.
Nevertheless, they have high hopes that the next big thing like Facebook, Amazon, or Uber comes from Europe instead of America. America has a lot of benefits and technology for anyone who wants to start growing a business, but Europe is becoming just as popular because their technology is growing bigger and stronger just like their company. Technology investment bank GP Bullhound mentioned it is amazing to see well over forty new companies (also valued as a billion dollar companies) originate from the continent in the past year alone.
What is it that makes the company so different from Paypal or any other processing company? Stripe wants to streamline the online checkout process by allowing various businesses to embed and personalize a payment form on their app or website instantaneously. Allgrove, an eBay power seller, mentioned that while online shopping is popular, fewer than 5% of transactions around the globe happen online.
In the UK, online percentage sales are a bit more successful and produce twice as much as anywhere else in the world. Allgrove believes these numbers could be higher, but no one has yet to figure out how they can make a quick, smooth, and secure checkout experience online.
Although Paypal and several other companies like Twitter, Apple, and eBay have overall been successful at making online ordering a breeze, something is still missing. One of the best things about Stripe and what makes it so appealing is because of their API system. It allows someone to understand error codes through predictable HTTP and URLs.
It’s also important for cross-platform compatibility and client-side web application. Their API has programming flexibility that was once thought of as hard to achieve or impossible with legacy systems. API and the mobile functionality of the system go hand in hand. Stripe was made with systems like iOS and Android in mind to make the once over-bloating and confusing APUs repurposed or simple. It doesn’t hurt that their pricing is also simpler to understand and is cheaper than its competition.
The company also has a hand in virtually every programming language with highly documented files. This information is that documented into a more understandable, nontechnical language. Payments today are currently built for offline transactions. If a merchant partnered with Paypal for example, the buyer would also end up needing to be a customer for Paypal too. If you were ordering from any website or social media platform, you would eventually be redirected to Paypal, Google, or any other payment platform.
Stripe plans to eliminate that altogether where you can simply buy directly and feel safe knowing your information is secure. It’s because there are plenty of steps someone has to go through and businesses aren’t able to customize their experience in order to make the process truly seamless. Even though other companies had success, this can’t be denied, there has yet to be someone who looked at it from a platform point of view. By providing software building tools and API, both the merchant and buyer can be happier. The company’s goal is to increase the GDP online.
Although Stripe is still a startup company, they are winning the hearts of several big investors by staying simple and having enhanced attention. The brothers state that the most inventive companies are not often those who make a completely new idea. that they aim to try and perfect what is already out there.