Stripe started by two Irish brothers – Patrick and John Collison (aged 26 and 24) has now soared to a valuation of $3.6 billion! This is on the back of its deals with Walmart, Lyft and OpenTable.
The company was started in early 2010 to make payments on the web easier to process. Anyone who has ever worked with Merchant Accounts knows how tough it is to sign up and then integrate those accounts with your site. The various payment tiers are a pain as well. Stripe’s aim was to go beyond all that and provide a simple service that was used instead of merchant accounts.
It has had various rounds of venture capital financing from Sequoia Capital, General Catalyst Partners, Andreessen Horowitz, Founders Fund, Khosla Ventures, and PayPal co-founders Peter Thiel, Max Levchin, and Elon Musk.
Stripe’s simple cost structure is to charge 2.9% + $0.30 for every successful transaction. Sure, it is higher than some merchant accounts, but then one does away with those silly fees for everything – setup fees, monthly fees, minimum charges, validation fees, card storage fees, or charges for failed payments.
Stripe is now planning to expand internationally.
Now Stripe is looking to expand further outside the U.S., and is prepping for its entrance in Latin America and Southeast Asia, said John Collison, who co-founded the San Francisco-based company with his brother Patrick in 2010.
The start-up, which competes with PayPal’s Braintree service and to some degree with Square, already operates in Europe, Australia and Canada.
Last year, they have already tied up with Apple to integrate their service with Apple Pay.
That’s a pretty impressive feat for two brothers who became millionaires when they were teenagers by selling their company Auctomatic!
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