Economist Podcasts Earning them: Stripe’s monster valuation
Mar 16, 2021
Patrick Collison, co-founder of the online payment powerhouse Stripe, shares insights on the company's astronomical rise in valuation, especially during the pandemic. He discusses its pivotal role in the evolving payment landscape and the fierce competition from other major players. Meanwhile, Rosemary Ward highlights the political turmoil surrounding Governor Cuomo, who faces serious allegations amid a challenging public image. The podcast also touches on the intriguing rise of beauty trends in conflict zones, exemplifying resilience and personal expression.
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Stripe's Origins
- Stripe's co-founders, the Collison brothers, started by selling their first company in the early 2000s.
- With the proceeds, they launched Stripe in Silicon Valley, initially catering to startups.
The Payments Ecosystem
- Digital payment firms operate like a transport system, with gateways connecting shops to infrastructure, rails representing payment methods, and additional services acting as refreshment trolleys.
- PayPal offers all three, while Stripe and Adyen focus solely on gateways.
Rejection Rate Advantage
- Stripe and Adyen excel at reducing payment rejection rates, a crucial advantage.
- They help merchants save money by cutting rejection rates by 4-5 percentage points, compared to the usual 10-15%.