Tuesday 22 May 2018

Limerick brothers' Stripe hits $5bn valuation

Patrick (left) and John (right) Collison
Patrick (left) and John (right) Collison
Adrian Weckler

Adrian Weckler

Stripe, the online payments company founded by Limerick brothers Patrick and John Collison, has raised fresh funding that values the startup at €4.6bn ($5bn).

Chief executive Patrick Collison said that the five-year-old firm has taken new investment from Visa, American Express and venture capital company Sequoia Capital.

The new investment round, which the company says is "less than $100m", brings Stripe's overall funding to over €200m since it was started in 2010.

Stripe makes it easier for firms to accept credit and debit card payments online, particularly for merchants who have not engaged in online payments before.

The company has recently signed major deals with social networks Facebook and Twitter to create 'buy now' buttons on the services. Stripe has also announced a new partnership with credit card giant Visa, a move described as "huge" by investors.

"Stripe is not competing with the card networks," Michael Moritz, Sequoia Capital partner said. "The fact that Visa has chosen to invest in Stripe, not in PayPal, is of absolutely huge significance." Stripe recently launched into Scandinavian countries and has been keeping tabs on the European market.

"I think if you look at us in two years time, we'll have more European partners than we do today," co-founder John Collison told the Irish Independent last month. "We already aggressively look at the European market trying to sort between companies and find the ones who would be good partners for us... I'm pretty psyched about the European fintech market in particular.

Co-founder Patrick Collison said that the "biggest determinants" on the financial side of the "overall payments ecosystem" are the credit card networks. "We hope to continue working closely with them," he said in an interview with 'The New York Times'.

Irish Independent

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