Stripe or Hype?
What is it about Stripe that makes it stand out? What’s beyond payment gateway business that stripe hasn’t ventured in? Isn’t payment gateway low margin and high operations? Also for SWE, how much solid stuff remains to be build? YoE 10 TC 360 #stripe
It's hype but that's making it rise.
It’s all hype. Someone tell me where their moat is.
I’m interested to know as well
Stripe in my opinion is hype. Most people who say stripe is great do not fully understand Stripe’s business. You are right Payment Gateway is a low margin business. They are placing some really ambitious and risky bets in new areas(issuing, treasury, etc) where in my opinion they are not thinking right. Just playing the developer friendly card in their new bets is not going to take them anywhere. Still an ambitious company and great concentration of talent.
Care to opine on why issuing and treasury isn’t a smart move? Genuinely want to hear more.
Ok cool let’s start with issuing. Visa + MasterCard + Amex global transaction value is $8.8T + $6.5T + 1.1T = $16.4T.. Data from 2019 annual reports. Stripe issuing is trying to take a piece of the interchange revenue. Majority of the interchange revenue goes into the pockets of issuers who take the credit risk(Stripe is not the one taking credit risk and Stripe is not the issuing bank). If you move out of USA, the interchange rates are highly regulated (for eg there is a reason Stripe charges only 1.4% for payment processing in UK). Stripe charges 0.2% in US and even if they charge 0.1% in other counties. The entire global market size here is Approx 24B(0.15%). Even a credit card startup like Brex wouldn’t use Stripe Issuing. Unlike payment processing, issuing is not a business where you just go in and say I am developer friendly. With this approach Stripe wouldn’t even get to 1%($240m) market share of the $24B that equates to the global market size. Stripe should think bigger than just issuing cards to DoorDash drivers. Stripe got into issuing and corporate card business in FOMO. Corporate Card was FOMOd from Brex and Issuing FOMOd from Marqeta. obviously I did not cover everything in this explanation. Can answer if you got more specific questions on this.
Why would anyone bother selling books online?????????
It ain’t 1994.
As a Stripe, You are in the best position to constructively bring out facts to showcase why Stripe is not a hype. Is this the best counter explanation you could come up with ?
I don't follow stripe much. But here's something I have noticed. They have a large number of new products: stripe card, stripe atlas, stripe SaaS builder etc etc. The latter two look like high margin businesses. Also, when someone founds a SaaS company using Stripe Atlas, they are likely to use Stripe SaaS billing and Stripe corporate credit cards. Maybe someone will have better examples
Interesting, giving scope for cross selling. Isn’t that a sign of a matured product? Some examples would be helpful for sure.
What about Square, Adyen, PayPal which are all public companies with 100b+ valuations. Are they hype too? Genuine qn
Everything is overvalued in this market . Investors are getting too much carried away with just growth (3-5 years at this point of time) without understanding that competitions are the real threat to that growth. If there is too much money in a segment, big tech would sniff them and compete unless these are low margin businesses that are hard to compete with without scale.
https://notboring.substack.com/p/stripe-the-internets-most-undervalued-ec3
36B (at beginning of covid) is way out of date and everybody knows.
🚀 🚀 🚀 to the moon!!!!!
They are getting into SMBs