Stripe to expand in new services
What makes Money20/20 stand out is the quality of the conference. John Collison, Stripe CEO, was one of the speakers this year.
Stripe's original promise in 2010 was to make payments easy for merchants. Stripe, once known as one of the most brilliant startups has now become a strong multinational company, valued at US$ 95 billion (EUR 89 billion) after it raised US$ 600 million (EUR 561 million) in its latest round of fundraising in 2021. Stripe considers merchants and consumers alike just want a smoother experience in payments, and they have been efficient from day 1 in delivering this promise. Now, Stripe has a remarkable list of references including Amazon, Google, Booking.com, Deliveroo, Zoom, Shopify, Lyft, …
According to John Collison, Stripe is ready for more expansion. Stripe already proposes an extensive offer for issuance, transaction, acquisition, risk management and processing. Now, the company is ready to expand even more into the financial services industry. This move actually started in 2019, when Stripe started to offer loans and credit cards to businesses in the US. The company also started to propose cloud-based tax services to US corporations. Being at a European conference, John Collison reaffirmed that Stripe will develop all kinds of financial services offer in Europe in the next months.
Also, according to him, there is still room for growth in commerce optimization. Physical commerce and eCommerce evolve along the same ways: improvements in payment systems in eCommerce tend to spread to traditional commerce.
Open banking as it standardizes interfaces between different players in the payment environment opens the market to new positionings and new offers, thus fostering a healthy competition on the market, that, at the end of the day, is favorable to consumers, merchants and suppliers of new payment means. For instance, Stripe is partnering with Wise (previously known as TransferWise) to deliver delegated authentication to improve payment conversion rates in Europe. This way, in compliance with SCA (Strong Customer Authentication), consumers can got through the authentication process without interfering with the checkout flow.
John Collison concludes: "Stripe makes payments work the way you'd think they should work, if you had never experienced payment systems."