Recently, Stripe, the online payments company closed a $245 million funding round that ups its value from $9 billion to $20 billion. Founded in 2016 by John Collison and Patrick Collison, the company has doubled its valuation in a span of two years. This recent round of funding was led by first-time backers including Tiger Global Management and DST Global.
Now that Stripe is a $20 Billion Company, here’s what you need to know about Adyen’s primary competitor.
#1 Engineering hub in Singapore
Headquartered in San Francisco, Stripe will be using this money towards international expansion, product development and developing its payments network. Furthermore, the funding companies have bet on Stripe’s promising future in the ultra-competitive, low-margin world of online payments. In addition to it, Stripe is also opening its fourth global engineering hub in Singapore joining the existing office in Seattle, Dublin, and San Francisco.
#2 How it all started?
Back in 2010, the Irish brothers John Collison and Patrick Collison resettled in Silicon Valley in an attempt to seek careers in the software field. After exploring so many possibilities, they came up with an idea of starting their online billing and payment systems. Thus Stripe came to light.
Soon after the technology became a hit with startups and other powerhouse technology companies like Instacart, Lyft, and DoorDash. As these companies processed millions of transactions, Stripe levied a nominal fee on each one for its services.
Last year about 84 percent of Americans purchased something through Strip and according to the Collinson’s brothers, it will increase with new customers including Spotify.
#3 Startup to Fortune 500 companies
The online payment company currently processes billions of dollars a year for thousands of businesses, right from start-ups to Fortune 500 companies. Some of the customers’ using Stripe include Twitter, Kickstarter, Shopify, Salesforce, Lyft, and many more.
#4 Significant threat to Adyen?
Not long ago, Adyen has witnessed a 75 per cent jump in first-half net profit, further boosting its shares as well. To be more specific, Amsterdam-based Adyen sales peaked to €156.4 million in total revenue, up 67.3% YoY, processing more than €70 billion of transactions, and collecting €48.2 million in net income up 74.6% YoY.
Adyen is the primary payments provider to eBay and also has other customers including Uber, Netflix, Facebook, Spotify, Etsy, Vodafone, Sephora, Tory Burch, L’Oréal, and Booking.com.
With online payments further on the rise for the foreseeable future, the battle between these two fintech super-unicorns will be an interesting one to watch.