Does Stripe really make a lot of money? Is it worth investing?
I’m trying to figure out why a ton of ex-Googlers are migrating over there. I would imagine their financials aren’t far off from Square or PayPal (meaning not 2-3x better) but somewhat “similar”.
I get that they process billions and billions of dollars worth of payments but from their 2.75% take, like 2.25% of that goes to the banks and credit card networks like Amex and Visa. So they are probably making 0.5% revenue from each dollar. 30 billion times .005 is 150 million revenue, and 30 billion is a crap ton of money to process.
And assuming your company uses Stripe, once you hit a big enough level (like Apple, Amazon, Walmart), those companies would just create their own payment processing in-house and ditch Stripe.
So why is everyone so bullish on Stripe?
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Also Stripe publicly announced that it was processing hundreds of billions of dollars a year quite some time ago.