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

By

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

SEPTA Puts ZeroEyes on Public Gun Safety

By: Greg Tavarez    11/28/2022

SEPTA looked to ZeroEyes to start a pilot program designed to reduce the likelihood of gun-related violence on train platforms.

Read More

Brand Interaction in Metaverse? Consumers Express Excitement

By: Greg Tavarez    11/25/2022

Almost three-fourths of consumers believe brand interactions in the metaverse are in a position to replace brand interactions in the real-world, or at…

Read More

WB Trading Review Guide To Top Tech For Trading Success

By: Contributing Writer    11/23/2022

There are many different types of technology that you can use when it comes to trading investments. This WB Trading review will discuss some of the to…

Read More

United (Fungi) Front: Industry Leaders Join Forces to Advance Sustainable Protein

By: Matthew Vulpis    11/18/2022

Mush Foods teamed up with several fungi fermentation companies from abroad to form a new international trade association: The Fungi Protein Associatio…

Read More

What Is Banking CRM and How Can It Help You?

By: Contributing Writer    11/15/2022

When most people think about CRM, they think about sales and marketing. But CRM banking is a powerful tool that can help banks and credit unions impro…

Read More