STRIPE - SQ Competition

Hey Everyone,

There’s been great analysis on SQ but no mention of Stripe.com.

I came across this company a few days ago and wanted other to be aware.

Stripe is a payment processor similar to SQ but focuses on the e-commerce market with easy API’s and robust capability. Think Wix and Shopify to small businesses for websites as Square and Stripe would be to payments for small businesses.

They are private with some notable VC funding and other worthy information found at

https://stripe.com/press

Stripe is 900 people and headquartered in San Francisco. The company has received around $450 million in funding to date; investors include Sequoia Capital, Visa, American Express, Peter Thiel, and Elon Musk.

Overall, the focus is on small businesses that want an easy plug-in for payment processing.

~Scott

6 Likes

https://techcrunch.com/2017/04/07/stripes-patrick-collison-s…

Private companies are inherently challenging to analyze and understand.

If, and when, Stripe approaches an IPO then I think we would see more traction and speculating. But with no future opportunity to invest, it kind of feels like a tease.

BTW, I think Stripe has the aesthetics of a growth investment, but I want to know what’s under the hood as well.

2 Likes

Stripe is doing pretty well over here in Asia as far as I can tell from Singapore.
Ant

2 Likes

Seen it being used in quite a few stores, particularly by fashion retailers. I believe they charge 2.9% plus 30 cents per transaction.

In a similar vein, izettle is also doing pretty well and intends to IPO sometime this year. Swedish company founded in 2010, are in 12 countries, list square as one of their main competitors, but only compete directly with them in the UK, where izettle is also the market lead. I see izettle in pretty much in every small business shop/coffee house in London. I’ve never knowingly seen a square one.

Like Square Capital, they also offer izettle advance.

The company looks well run and looks set to succeed, but as already said, there’s not too much point going into too much detail with these private companies in regards to investment. However, it is valuable to be aware of current competition to square! When and if they IPO, we will be able to see their financials and see what the value of the company is. At that point we can better analyse growth, moat, and pair it with valuation.

2 Likes

Stripe’s founders are very smart and very young. Their story is fascinating.

https://www.bloomberg.com/news/features/2017-08-01/how-two-b…

Alex

3 Likes