28 February 2024

Valuation Doubles for Online-Pay Startup

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The payments startup said it raised $70 million in a new funding round valuing it at $3.57 billion, doubling its valuation in less than a year. Stripe is adding to its balance sheet as it fends off threats from more rivals in digital payments, a market Forrester Research estimates will top $90 billion in total U.S. spending in 2017. This year, Apple Inc. unveiled a new foray into mobile payments and eBay announced plans to spin off its PayPal division, the leader in online payments for more than a decade.

Stripe helps thousands of businesses process payments by giving them an easy-to-use computer code they can plug into their website or mobile application to begin accepting credit-card transactions. The company takes 2.9% of most transactions in addition to a flat commission of 30 cents per charge—the exact same rate set by PayPal. The rapid rise of Stripe’s valuation reflects the progress the company has made this year, including deals to power the “buy” buttons on social networks Facebook and Twitter.

The company, with about 170 employees, will use the capital to fuel its expansion overseas, where it hopes to enable consumers in any country to shop from merchants around the world using their local currencies. Stripe is currently in 18 countries.

Since its founding in 2009, the startup has raised a total of about $200 million from investors including Andreessen Horowitz and Allen & Company as well as PayPal founders Peter Thiel, Elon Musk and Max Levchin. In January, the company raised $80 million at a $1.75 billion valuation.

Click here to access the full article on The Wall Street Journal. 

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