Stripe - Transferring Money and Happiness

Company Profile is an initiative by ListMyStartUp to publish verified information on different startups and organizations. The content in this post has been approved by Stripe.

We all love using credit and debit cards to pay both online and offline. Life is easier now because we don't need to carry cash anymore with us. It was quite difficult earlier to pay through websites as it involved a few expenses. However, nowadays we find that everything has changed!

Stripe is a leading processor in online payments. It is an American software as a service and financial services company. The company offers application programming interfaces for e-commerce websites and mobile applications and it is a payment processing software. Read the Stripe success story below.

Stripe - Company Highlights

  • Company Name-Stripe
  • Headquarters-San Francisco, California, United States
  • Sector-SaaS, Internet
  • Founders-Patrick Collison, John Collison
  • Founded-2010

Stripe - About

Stripe is a company that builds economic infrastructure for the Internet. Companies like Facebook use the company's software to approve online fees and operate complex global strategies. It is very useful for small businesses and new startups. The company aims to help more companies to get started and grow the GDP of the internet.

Stripe - Startup Story

The two Collison brothers started working on Stripe together in 2010. During that period, Patrick was working on various side projects and they argued that why was it so difficult to accept fees on the web. The brothers thought of solving the problem and finding a solution to make it simple. The next six months Collison brothers dealt with it, showed it to the friends and noticed how people were interacting with it all along. Within two weeks of building the application, the brothers had their first transaction with a company named as 280 North. The founder of the company was the first customer and he joined Stripe. He was the first employee of Stripe.

Stripe - Founders and Team

The founders of Stripe are the two brothers - Patrick Collison and John Collison.

Patrick Collison is an Irish entrepreneur and billionaire. He is the co-founder and the CEO of Stripe. Patrick is the elder brother and at the age of sixteen, he won the 41st Young Scientist and Technology Exhibition in 2005.

John Collison is also an Irish entrepreneur and billionaire. He is the co-founder of Stripe. John is the younger brother and Cofounder of Stripe.

Patrick Collison and John Collison (left to right), Founders, Stripe

Stripe - Business Model

The company boasts of the product business model it has. It offers secure, fast and simple online transactions for businesses. Stripe is a payment processor that can be incorporated into mobile applications and websites. Furthermore, it does not charge a monthly fee and it is only available for the businesses. Stripe provides fraud prevention and banking infrastructure to facilitate payments over the web. It does not allow consumers' payment information to pass through the merchant's server. The information is only accessible to Stripe. This proves that the application is safe and it reduces the amount of risk.

Stripe has some other products through which it makes money. Some of them are listed below:


It helps customers to invoice their clients, analyze subscription revenues, and curate schedules on when to charge the customer. The application is free until the first $1 million after which a 0.5% is levied on the recurring charges.


It is an application based on machine learning that helps customers to fish out fraudulent transactions. They flag any suspicious transactions from further making the payment. Since the app is integrated with Stripe, Radar has a vast repository of data from which it can make a decision.


By paying a nominal infrastructure fee, customers can use Sigma to access transaction data through SQL queries. Sigma is the data warehousing tool of Stripe.


It is a card reader that allows card payment across the globe. Since the terminal is also directly integrated with Stripe, it can compare payments.

Premium Support

It is an initiative by Stripe to provide 24*7 technical and operational support to its customers from all ranges. Depending on the company’s size, the cost of the service varies. Their services are accessible via phone, mail, and chat.

Stripe Capital

Through Stripe Capital, customers can borrow money directly from Stripe. Stripe generates revenue through the interest that they derive from these loans.

Strategic Disinvestment

With a large amount of data to analyze and infer various investments, Stripe can easily understand the future of any kind of investment that they have made. Stripe sells the shares that it bought from other startups for more money than what it had invested in it.

Stripe - Revenue Model

The revenue model is very simple here. It earns from the fees it charges to its customers. The fees always vary based on the value of the payments. The revenue model has been constant since day one. The company has got different packages on the selected products and for every transaction, the company charges a 2.9 or a 0.30% fee. This is a fixed fee which is applied to every successful transaction done through their site. For international transactions, the company charges 1% more, which becomes 3.9%.

Stripe - Growth

The mission of the company is to increase the GDP of the internet. The company is growing through the relationships it has made with its customers. During the pandemic, the company generated $1 billion in revenue. Three months later the revenue was $9 billion.

Stripe - Competitors

The top competitors of Stripe are PayPal, Square and Adyen.

PayPal is the top competitor of Stripe. It is headquartered at San Jose, California and was founded in 1998. It is a Public company, which operates in the Fintech field.

Square is also one of the competitors of Stripe. It is headquartered at San Francisco, California, USA. Founded in 2009, Square also works in the Fintech space.

Adyen is one among the top rivals of Stripe. It is headquartered at Amsterdam, Noord-Holland. The company operates in the Fintech sector and was founded in 2006.

Stripe - Future Plans

Stripe slowly plans to extend its business to involve cryptocurrency services. They recently announced that a special team for crypto has been set up. Stripe is also working towards web3 - which refers to a new, decentralized version of the internet. They also plan on expanding their reach to the gulf region.


What is Stripe?

Stripe Payments is a payment processing platform. It allows you to transfer money from a customer's bank account into your business's account by way of a credit or debit card transaction.

Is stripe safe for payment?


How does Stripe work technically?

Stripe is a PSP (Payment Service Provider) that lets business owners collect payments, including recurring payments, and transfer them directly to their own account instantly. It processes the payment, checks for fraud, and takes a fee of 2.9% plus 30 cents.

What Is the Biggest Difference Between Stripe vs PayPal?

One of the biggest differences is the type of user they're designed for. For example, Stripe was built with developers in mind and is ideal if you want a payment processor that offers a lot of customization and developer tools. PayPal is a better option if you're looking for a simple, straightforward solution for accepting payments through your website.

Can You Use Both Stripe and PayPal for Your Website?

If you don't want to choose between which payment processor you use, using both to accept payments is an option. The benefit of this is that you're able to let your customers select their preferred method of payment at checkout. On the other hand, managing your business finances on multiple platforms can be challenging and may lead to unnecessary costs.

Type above and press Enter to search.