What is Stripe’s stock price, and are they publicly traded? Unfortunately, investors cannot purchase shares of Stripe because it is a private company. However, Paypal (NASDAQ: PYPL) and Block Inc. (NYSE: SQ) are payment processors that traders can invest in.
The noise for a Stripe IPO is growing louder and louder. Top analysts have said that they believe Stripe could be a big one. Whether that’s true or not remains to be seen. Will Strip Stock IPO? Hopefully, where there’s smoke, there’s fire, and it happens.
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Stripe Introduction (No Stock Symbol)
Right now, you can’t buy Stripe stock. Rumors have been spread that a Stripe IPO will happen soon. But those rumors are so far unsubstantiated. However, they’re an exciting company and would have many excited investors should they decide to become publicly traded.
They could be more stable than the Coinbase stock IPO that occurred recently. People were incredibly excited about that IPO, as anything to do with cryptocurrency gets people going.
Many people and businesses worldwide have switched to online payment services for sending and receiving money, especially after the Covid-19 pandemic.
The shift has created a massive opportunity for established and emerging fintech companies to capitalize on the booming growth in online payment.
While most people are only familiar with popular online payment processors such as Square vs PayPal, a rapidly growing fintech startup, Stripe, has been making the headlines lately.
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Stripe Stock Overview
Stripe, like PayPal, allows businesses to accept online payments for goods and services. Its products and solutions enable online credit and debit card payment processing. Its customers range from small merchants to big companies such as Amazon, Salesforce, Target, Shopify, and Lyft.
Stripe recently raised $600 million in its latest funding round, with its valuation hitting $95 billion. That makes it the most valuable startup in the history of the U.S. The current valuation translates to a sharp surge of nearly 3-fold compared to about $36 billion in October.
One of the key reasons behind Stripe’s rapid growth is its user-friendly interface. Merchants can easily set up their accounts and start selling online. Millions of enterprises worldwide use Stripe to receive payments, send payouts, and manage their businesses online. Just think of how that’d affect Stripe stock. Their IPO would be out of this world if it moved based on their valuation.
How It All Started
The history of Stripe dates back to 2010 when two brothers, Patrick and John Collison, founded the company to simplify the process of accepting payments on the web.
Back then, Patrick worked on a few side projects and realized how difficult it was to receive payments online. This inspired the brothers to develop a payment system prototype.
They performed their first transaction within two weeks of building the system. In the subsequent months, they showed it to friends and allowed them to interact with it. Their initial growth was mainly spurred by positive word of mouth.
At that time, they weren’t sure of addressing issues like fraud and processing of payments outside the U.S. They momentarily joined hands with a payment firm but realized that the only way of efficiently handling the complete process was by self-managing all aspects of the system. Since then, they have been controlling everything in-house.
Stripe grew over the years by expanding into newer markets, making strategic partnerships, receiving funds from investors, and introducing new products and payment solutions. We could see Stripe stock continue to grow the company if it goes public.
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How Stripe Makes Money
Stripe primarily makes money by charging a certain fee on every successful transaction executed on its platform. However, that fee varies according to the payment volume and package subscribed by customers.
Nevertheless, the company’s standard structure is 2.9 percent and a 30 percent fixed fee on every successful cash transaction. Meanwhile, the cost differs for other services such as Payouts, Connect, and Terminal. If we get a Stripe stock, we could see a more thorough breakdown for the IPO filing.
Notable Events for Stripe Stock
Here are the notable events in Stripe’s journey over the last decade.
Stripe received an investment of around $2 million from Elon Musk and Peter Thiel in 2011, which fueled the company’s initial growth. In 2013, the company acquired the chat and task-management app Kickoff.
In 2016, the company launched Stripe Atlas, an unconventional service that facilitates the formation of a company. It is an easy-to-use platform that helps users launch their startups from around the globe. At the same time, it eliminates the need for lengthy and complex paperwork. According to the company, the startups registered with the Stripe Atlas have raised over $2 billion in funding.
2017 Stripe entered Asia by joining major Chinese fintech players WeChat Pay and Alipay. The deal allowed merchants registered on Stripe to receive payments from millions of consumers in China.
In 2018, Stripe introduced new products, including Stripe Billing, Terminal, Stripe Issuing, and Radar 2.0. Stripe Billing. This allows users to bill consumers with invoices, while Stripe Terminal lets users build their in-person checkout to receive in-store payments. On the other hand, Stripe Issuing lets online businesses create credit and debit cards, while Radar helps detect and block fraud using machine learning.
In 2020, Stripe introduced banking services by joining hands with banks, including Barclays, Citigroup, and Goldman Sachs.
Over the past couple of years, Stripe has expanded into several countries worldwide. It operates in over 35 countries and supports over 135 currencies and payment methods.
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Stripe IPO
You may be seeing Stripe stock trading on a U.S. stock exchange shortly. Rival payment companies like PayPal and Square have grown tremendously since their IPO. Stripe has all the capabilities to achieve similar growth landmarks after becoming a public entity.
Industry experts believe Stripe stock will likely go public with a market valuation of more than $100 billion. However, no official date has been disclosed for the Stripe IPO. Nevertheless, many believe that the latest funding round of $600 million was perhaps the last time Stripe raised funds before a public listing.
Final Thoughts: Stripe Stock
Stripe has been a key beneficiary of the e-commerce boom post-Covid-19 pandemic. Its processing volume increased to record highs amid a sharp surge in the global e-commerce market last year. Stripe stock is reportedly one of the most desired stocks in the secondary markets, where investors purchase equity stakes from insiders and early investors.
The company’s valuation in secondary markets reportedly increased to $115 billion in February before decreasing to $90 billion after the latest funding round.
Meanwhile, Stripe intends to use the latest funding proceeds to invest in its European operations and support the increasing demand for its regional products. Stripe has a presence in 42 countries. And out of those, 31 are in Europe.
Speaking on the company’s investment plans for Europe, CEO John Collison recently said, “We’re investing a ton more in Europe this year, particularly in Ireland. Whether in fintech, mobility, retail, or SaaS, the growth opportunity for the European digital economy is immense.” And before you go, check out our latest post on Red Bull Stock.
