Stripe is one of the world’s leading online payment processor for internet businesses. John Collison and Patrick Collison laid the foundation of the company in 2010 in Ireland. and later they transferred the headquarter of Stripe to San Francisco, USA.
Stripe provides various services i.e., online payments and transactions, billing, fraud and risk management, capital requirements, business cards, and online cloud-based integrated programs are some of the major products and services of Stripe.
According to an estimate, the net worth of Stripe is roundabout more than 36 billion US dollars by the end of 2020. There are approximately 2924 people are working for the company. The annual revenue of the company was 380.1 million US dollars in 2019.
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Stripe Competitors
Some of the main competitors of Stripe are:
Today, we’ll study the swot analysis of Stripe. The internal factors like strengths/weaknesses and external factors like opportunities/threats impact the online payment transaction firm.
Here’s the swot analysis of stripe (Online Payment Processing Platform)
Strengths of Stripe
Below are the major strengths of Stripe online payment platform.
Globally Recognized Brand
Stripe began its journey in 2011 and it has taken a long time for the company to make its name in the online payment processing industry. No one exactly knows the brand worth of stripe. The net worth of the brand is roundabout 36 billion US dollars.
Millions of businesses and companies use the online payment processing platform of Stripe and its products/services. The brand is also operating its business globally through partner programs in more than 42 countries across the world.
Tech Products/Services
Stripe provides a variety of applications, solutions, and cloud-based data processing services. The company has a solution to every business problem. For instance, if they don’t have it, then they’ll search it for you through their local partner programs.
API Integrations
One of the most important strengths of Stripe is tech flexibility. It provides a flexible payment processing service with the help of API integration and many other applications. The company offers a variety of business web applications and they’re readily available for users.
Businesses can easily integrate those applications on their website. The API integration program is so easy and flexible that it has attracted the attention of millions of businesses across the world.
USP & Product Portfolio
The main focus of Stripe business is on the online payment processing system. The company has got a diverse range of solutions for business customers. The company offers different types of financial facilities and business cards.
Now the brand has emerged as a complete financial solution provider firm from the online payment processing company. The core of Stripe is tech-oriented and it uses the open-source API approach and other variety of products/services.
Partnerships
Stripe didn’t have all the functions that the competitors had in the beginning. For instance, the brand didn’t embed the tax calculator in its online payment processing system. The company has made alliances and partnerships with tax calculation developers to tackle this issue.
It enabled the brand to provide an integrated solution for its users as ads-in. The company has also partnered up with Alibaba, Apple Pay, and Visa through its partner program to offer the payment service.
The partner program of Stripe also has got solutions for online business customers. If online retailers and e-commerce platforms are looking for payment gateways. Stripe’s partner program offers all-at-one place solution to the marketing solutions and business cards. It was so good that it made Stripe provide online payment solutions to all kinds of businesses.
Worldwide Customer Database
According to an estimate, Stripe has a database of customers in roundabout 135 countries across the world. The clients of Stripe vary from small and medium-sized businesses to the world’s leading companies. Some of the main customers of the company are; Hubspot, Uber, Amazon, Shopify, Slack, Xero, Zoom, Wix, and SQUARESPACE.
Investors of Stripe
Ever since the foundation of the company in 2011, Stripe has raised capital by different investment calls. The company hasn’t disclosed its financial record. According to an estimate, the current net worth of the company is roundabout 36 billion dollars.
Elen Musk and Peter Thiel are the main investors of Stripe. According to an estimate, their investment comprises 1.6 billion US dollars collectively.
Weaknesses of Stripe
Below are the worth mentioning weaknesses of Stripe online payment platform.
Less International Presence
Since the foundation of Stripe, the company has been able to cover the market only in 40 countries across the world. On the other hand, the main competitor of Stripe, PayPal, is offering its services in more than 200 countries across the world. Limited presence in the global market is one of the major weaknesses of Stripe.
Integrations with Apps
Stripe uses too many 3rd parties developed applications through its partner program. For instance, if you want to embed a tax calculator in your payment process, then you’ll have to launch another application of the company’s partners. If you want to customize your system, then you’ll have to hire a coding expert.
Cost per Transaction
The charges of Stripe per online payment processing transaction are roundabout 2.9% and 30% higher than Square and PayPal respectively. The currency exchange rate of the company is 2% and that is double that of Square and PayPal.
It’s not only the cost; the company doesn’t provide some of the key features. The customers have to hire various third-party developers to complete the process. It becomes very costly in the end.
Opportunities for Stripe
Following are the opportunities for Stripe online payment platform.
Going Public
The pandemic of covid-19 must have disrupted all the plans of the company. Stripe hasn’t announced the initial public offering (IPO) program of the brand. If the company wants to expand into the international market, then going public through IPO would happen sooner or later. It would help the company to attract more investment for market expansion.
Expand Globally
Stripe has gone through the initial difficult stage. Now the company is at a stage of expanding its business globally. The brand has got great growth potential in south Asia and Mena. If Stripe keeps on expanding, it could easily reach 200 countries across the world.
Product Range Expansion
Stripe has made alliances with the financial capital service market in the US. It provides fast and quick access to financial resources to businesses. It ranges from capital approvals, leaps gigantic, and payment processing. Stripe has got a lot of opportunities in the financial service sector, credit card issuing, and many other individual customers.
Threats to Stripe
Below are the greatest threats to Stripe online payment platform.
Negative feedback on No Customer Support
Many people have provided negative feedback about the company on the major social media platforms. Stripe has the lowest rating in terms of customer support. Such factors don’t pose any threat to the business of the company. But it would jeopardize the credibility of the company.
Highly Competitive Market
The online payment processing and financial service market have become very competitive in recent years. Competitors like Square, PayPal, Adyen, and Braintree pose a great challenge to the company. Along with these platforms, the digital cryptocurrency like Bitcoin is also a great risk to all the online financial service providers.
Less Appealing to Ordinary Customers
The target market of Stripe is business customers, and it’s contrary to the strategy of its main competitors. The company completely avoided the retail customer market. It would make difficulties for the company when it expands globally.
