Wheelings & Dealings: Visa Joins Amex with Giant Investment in Payment Startup Stripe

By Laura Stotler July 28, 2015

Payment startup company Stripe—now valued at $5 billion—has scored a whopping round of funding, with Visa taking a major interest in the company’s technology. The exact funding amount is open to speculation.

Stripe puts the most recent funding amount at less than $100 million, with contributions from American Express, Sequoia Capital and Visa. The company specializes in code that enables e-commerce merchants to add credit card companies’ “buy buttons” at checkout, letting companies compete more evenly with PayPal.

In May, Stripe made the code work for American Express and the new alliance will give Stripe access to Visa’s giant base of customers and merchants. Stripe is expected to use the new funds to grow globally beyond the current 25 companies it is working in.

Image via Shutterstock

It is expected that Stripe will continue to get backing from the major credit card merchants, since it enables companies to directly link to their payment processing. Competitor PayPal encourages shoppers to link to their bank accounts directly, bypassing the card merchants and associated fees.

According to Patrick Collison, CEO of Stripe, the new alliance with Visa includes getting secure access to its tokenization service, which converts customers’ card information into placeholder codes that can’t be intercepted by hackers. He said Stripe will use its own tokenization techniques to handle payment data storage but didn’t rule out using Visa’s techniques for building new business.

Stripe will also work with Visa on new types of digital payment experiences, while Visa will help Stripe expand into emerging markets as part of the new funding partnership.

“If your goal is to increase the GDP of internet and roll out globally faster … the card networks are the blindingly obvious people to work with,” said Collison.




Edited by Dominick Sorrentino

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More