Increase in Transaction Volume Observed by Stripe
In an unexpected move, payment processing giant Stripe has released a comprehensive update on its business, suggesting an upcoming Initial Public Offering (IPO). The update, presented in a seven-page letter from co-founders Patrick and John Collison, was shared by John Collison on social media and reshared by Stripe's company accounts.
The update provides some of the most detailed numbers that Stripe has ever put out, offering insights into the company's ongoing plans. One of the key highlights is the significant growth in cross-border payment volumes. Between 2019 and 2021, Stripe's cross-border payment volumes have at least doubled in every region it operates in. The company's Global Payments and Treasury network now supports over 50 local payment methods globally and payouts to 72 countries.
Stripe is experiencing its biggest growth outside of Europe and North America, and anticipates most major new companies to emerge from outside the US. In an effort to attract more startups, 60% of companies who went public in 2021 are Stripe customers. The company aims to further this trend through investments in Stripe Treasury and Stripe Issuing.
However, the update does not provide specific details about Stripe's plans for competing on cross-border payments. The company is working to simplify the cross-border payments process to boost its cross-border payment volumes, but the strategy remains unclear.
Interestingly, the update does not mention crypto, despite Stripe re-entering the crypto space in October. This could suggest a focus on traditional payment methods for the time being.
The update was released ahead of Stripe's yearly Sessions conference, adding to the speculation surrounding the company's future. The letter was unusually not linked from the rest of the company's website, leading to increased curiosity among followers.
E-commerce companies compete in cross-border payments by offering transparent, low-fee, and multi-currency payment solutions that simplify international transactions. Leveraging smart currency accounts and efficient tax procedures like reverse charge, these solutions aim to reduce costs and administrative effort.
Stripe's processed volume grew by 60% between 2020 and 2021, but 2022 is expected to be less robust due to pandemic-related factors. Despite this, the company remains optimistic about its future and the potential for growth in the global market.
As we await more information about Stripe's plans, one thing is clear: the company is committed to its mission of increasing the GDP of the internet and making online commerce easier for businesses around the world.
