Evolution is a constant process that enables humans to survive in their surroundings. This evolution can be physical, mental, or, in this case, financial. We have come a long way regarding how we trade with one another. Our civilizations started by applying a barter system. Then slowly but steadily progressed to a point where every trade was done through a piece of paper that promised money to the bearer. Now, this is the age of online transactions. Pretty much everybody makes some sort of online transaction in their daily lives. One company that is synonymous with online transactions is Stripe. Started back in 2011, Stripe has quickly accumulated a vast user base and billions of dollars of transactions every year. In this blog, we will take a look at the success story of Stripe and learn how two brothers from Ireland created one of the world’s biggest fintech companies.
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The Start Of Stripe Success Story
The two brothers, Patrick and John Collison, were born in rural Ireland on 9 September 1988 and 6 August 1990, respectively. From childhood, both brothers showed a keen interest in science and technology. As a result, after completing their basic education in Ireland, the brothers moved to the US. Here, they were admitted to MIT and Harvard, respectively. They completed their education in the US, and while they were in college, the idea of making an online payment platform came to them. This idea gave birth to, perhaps, one of the fastest-growing fintech companies in the world, Stripe.
Humble Beginnings
As mentioned above, the brothers thought of Stripe when they were in college. While studying, they were very frustrated with the existing online payment apps and solutions. They faced many difficulties when setting up a payment system for their projects. This was when they noticed that the market gap was too big and that new players could capitalize on the growing trend of online markets. As a result, they set out to develop a reliable and seamless online payment platform.
In 2010, the Collison brothers created and launched their first product with the help of an investor from Y Combinators. Their product was very different from other products on the market. Unlike traditional online payment platforms, which required cumbersome integrations, Stripe used a lite API model that developers could integrate into their websites or apps. The ease of use quickly gained traction, and Stripe became one of the top players in the online payments market.
Rapid Rise To Prominence
Stripe’s rise to prominence was nothing short of extraordinary. Just one year after their first product was launched, Stripe raised another $2 million in seed funding from investors like Elon Musk, Peter Thiel, and Sequoia Capitals. This allowed the company to expand its team and provide better customer service. It’s worth mentioning that initially, the brothers focused mainly on providing their product to developers across the country. This was one of the key factors for their rapid growth. The company focused on the developer community and offered a user-friendly experience, comprehensive documentation, and robust customer service. This developer-centric approach meant that tech entrepreneurs were incorporating this payment platform into their products. This resulted in their products being adopted by various industries.
This developer-centric approach and adoption in various industries allowed the company to secure a series C funding of $80 million. This pushed its valuation to over $1.75 billion. With this funding, Stripe expanded its business into new territories like Canada, the UK, and Ireland. Moreover, it started offering new services like Stripe Connect, which enables various marketplaces to accept online payments from their customers.
These developments ensured a financial performance that is nothing short of impressive. In 2021, the company raised $600 million in a series H round at a whopping $95 Billion valuation. Moreover, the company saw transactions worth $1 trillion in 2023. This made Stripe one of the fastest-growing fintech companies in the world. The information released a report in 2021 that mentioned that Stripe’s revenue in 2020 was around $7.4 billion. A 70% increase from the previous year.
What Does The Future Hold For Stripe
From humble beginnings to being one of the fastest-growing fintech companies in the world, Stripe has come a long way. The company’s innovative and tech-oriented approach has enabled it to become a leader in the fintech industry. In the future, Stripe aims to democratize its service and include small businesses in their digital financial ecosystem. For this, Stripe has been very active in acquiring small companies. Since 2017, the company has announced acquisitions worth more than $2 billion, with $1.1 billion coming in 2021 alone. Judging by this, Stripe’s future looks quite bright, and it’s almost certain that the company will change the Fintech industry for the better.
