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STRIPE: Pandemic boosts fintech giant’s payment processing and applications business

Stripe is a fintech unicorn that offers financial software and services. It is one of the most valuable start-ups in Silicon Valley.

The fintech giant founded by two brothers, John and Patrick in 2010 has more than 1.96 million active websites that avail their services and has raised over $2.4 billion in funds. Tesla founder Elon Musk was one of the very early seed capital investors. The company has a market share of about 18% when it comes to payment processing websites.

Over the years the company diversified its operations. Stripe initially launched as a payment processing software service, but today they even handle much more complex marketplace transactions and other financial and accounting related services.




Wall Street Journal had earlier reported that Shopify is one of Stripe’s biggest clients and that it has invested over $300 million in Stripe to help the digital retailer in movement and storage of its customers’ funds.

THE PANDEMIC

In the first six months of this year the fintech giant already raised $600 million. In 2019 and 2020, the company raised $1.5 billion and $600 million respectively. The firm’s valuation jumped from $36 billion to now $95 billion in under a year.

The company is using its latest round of funding to expand operations in the European Union nations.



“We’re investing a ton more in Europe this year, particularly in Ireland whether in fintech, mobility, retail or SaaS, the growth opportunity for European digital economy is immense,” John Collison, the co-founder and president of Stripe said.

As the pandemic accelerated the growth and market share of ecommerce businesses, companies like Stripe are witnessing record high demands for their service by developers who need to integrate payments and other transactions into their applications or websites.

PRODUCT LAUNCHES

Stripe recently launched a new product called Stripe Identity. This is a self serving tool in which organizations can use to verify user’s identities.

“Businesses have been asking us for an easy and fast way to verify identities online. Stripe Identity offers them just that, now, any internet business from a five person startup to a multinational enterprise can begin securely verifying the identities of their users in a matter of minutes, not weeks or months,” Rob Daly, the head of engineering for Stripe Identity said.

The company has also launched another product called Stripe Tax – this offers offers automatic up to date sales tax calculations and also includes vat, gst and other accounting related taxes to all of Stripe payment clients.

This sales tax calculation tool has been one of the major demands of most of their customers due to digital or online transactions going off the roof since the pandemic hit.