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CREDIT CARD GIANT Visa has joined investors putting their money into digital payments company Stripe, which was founded in 2010 by Limerick’s Collison brothers.
The latest fundraising round values the company at $5 billion (€4.5 billion) – up from a $3.5 billion pricetag put on it less than eight months ago.
Stripe provides back-end payments infrastructure so that businesses from startups to global tech firms can easily take customers’ money online.
Rather than having to design custom payments forms, companies can plug in its pre-made forms to websites and mobile apps. In return it takes up to 2.9% of the charges it processes plus a 30c charge per transaction.
The San Francisco-based company’s customers include Twitter, which it partnered with to put a “buy” button in tweets, crowdfunding site Kickstarter and Shopify, among others.
‘Blindingly obvious’
While the exact amount of the latest investment hasn’t been revealed, the New York Times reported it was “less than $100 million (€90 million)”.
By pairing with Visa, Stripe will be able to make the most of the company’s security know-how and its worldwide reach.
Its full services are currently available in nine countries including Ireland, while it is operating in beta in another 11 markets.
Stripe previously took investment from American Express and has also partnered with the credit card company for its fast online payments system.
CEO and co-founder Patrick Collison told Recode that the card networks were “blindingly obvious people to work with” if the company’s goal was to increase the value of internet transactions and speed up its global roll-out.
Collison and his brother John sold their first company, Shuppa, to Canadian firm Live Current Media for $5 million in 2008 when the pair were both still in their late teens.
Both had been in college in the US before dropping out to launch Stripe.
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Great success story and an inspiration to budding entrepreneurs of Ireland.
So proud, with a healthy dollop of jealousy. Inspiring.
Jealousy knows no end.
Envy lads, envy!
Congratulations to them both … what a shame that they couldn’t have stayed in Ireland – where, of course, we gave them all the encouragement and start-up funds to remain here!
That sort of start up business has to be based in the U.S. In Silicon Valley where all the other tech companies are head quartered. They wouldn’t have a chance if they set it up as a start up in Ireland as they wouldn’t have the access to the contacts and businesses that they have over.
You would hope that if they ever set up an Emea HQ that it will be in Ireland! (That is a when they set up I hope as opposed to if)
They already got an office here. Don’t think its an EMEA HQ but its a start.
They where given nothing from Ireland. Enterprise Ireland refused funding for them as they said there business was unable to compete with PayPal and not viable. There HQ would be in Ireland now if it wasn’t for Enterprise Ireland. http://businessetc.thejournal.ie/stripe-new-valuation-1812194-Dec2014/
Where does it say that in that article or any previous articles? Not saying it ain’t true but they still would need to be based in the U.S. To have gotten this far to date
They’ll go for Switzerland rather than Ireland if they have any sense.
Michael, they have repeatedly stated that you could not startup a company like stripe in Ireland. the reasons were a mixture of the people, but mainly the environment for growing startups. here, everything is based around enterprise Ireland getting their hands in it to control growth, and for private investors the gains are rapidly sunk into CGT and income tax (you must pay *both* if your company grows and you invest in it). Ireland is a terrible place for entrepreneurs – good for globals wanting to wash a few euro profits, but if you want to grow and not be have to fork it back to public servants and the tax man, it is worth the California cost of living.
Any jobs going lads?
Yes their new EMEA head is hiring in Dublin:
Two smart cookies! I wish them all the best of success and more…
*like
That is just fantastic! well done lads :-)
Brothers from different mothers? They dont look even remotely similar.
Isn’t that a lot of money for something intangible? Are we heading for a dot.com bust again?
Virtual money for a virtual commodity, I suppose that’s why it’s so easy to invest all “money” in it, the figures always sound good ie “billions” but at the end of the day none of it is actually real. (Still jealous and want some of it though)
I wish I had dropped out of college also. Def have become a tech wizard
bet they would trade it all for one lousy All-Ireland medal
I bet you they live in California.
fair play to them may it be worth double next year.
have your say