How Stripe Built A $35 Billion Company

Mind-boggling fun fact: Last year, 50% of online transactions were made through Stripe. In fact, you probably make payments on Stripe all the time and aren't even aware of it.
Order a Lyft? Stripe. Buy something on Amazon? Stripe again. Book a room on Expedia? You guessed it … Stripe! The list continues. Basically, if you pull out your wallet to buy anything online, you can bet two Irish boys are smiling somewhere.
While other kids in school were playing video games, Stripe’s founders John Collison and Patrick Collison were busy selling their first company for $5 million. That’s before graduating high school, by the way.
“Wait, what do you mean there’s no school valet for Lambos?”
As time went on, the brothers continued to build online businesses and found themselves increasingly frustrated with the absence of a decent payment processing platform. So, they did what all great entrepreneurs do: They turned their frustration into inspiration.
The Collison brothers would proceed to lay the foundation for what would become the internet's standard payment system. The rest is history.
Perhaps Stripe has the best business model of any company: Take a fee on everyone else's debit/credit card transactions (2.9% plus $0.30, for each successful transaction).
That may seem like a small amount of money, but after processing a trillion here and a trillion there, soon enough you're talking about "real money".
VCs love Stripe (to the tune of a $35 billion-dollar valuation, based on the startup's most recent funding) so much so, that its founders now share the title of the youngest "billionaire bros” on earth.
Do you use Stripe? Let us know in the comment section below!
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(Special thanks to our narrator, Toby Ricketts!)
* Editors Note: At 4 minutes and 52 seconds we mistakenly indicate that Peter Thiel "founded" PayPal. We meant to say Peter Thiel "co-founded" PayPal. The company was founded by 6 individuals: Peter Thiel, Max Levchin, Ken Howery, Luke Noesk, and Yu Pan.
#Stripe #Collison #History

[@BusinessCasual]

⚠ 📣 *MAJOR ANNOUNCEMENT:* Business Casual is suing KZbin. We have just published a feature-length documentary about our case. It is being censored. If you are a fellow creator, you need to watch this. ➡ kzbin.info/www/bejne/anrEgJiMnL9grcU

[@Fionan95]

I live in the Irish home town these boys grew up in, and the funny thing is our City Council Enterprise Board rejected their idea when they asked for funding as teenagers. Moral of the Story? Don't let old people make decisions about tech start-ups !!

[@Nedwin]

Hollywood must've had a plan to make a movie about the Collison's.

[@osagiedegbenga6201]

its there loss...if they have invested and had about 5% equity by now they will be worth $1.7billion dollars.Can we connect fionan.I want to discuss something important with you.

[@akramakram-fr7xy]

that's true

[@junejuly532]

The council is risk averse.

[@benzflynn]

Setting up local authority enterprise boards in Ireland was like buying lingerie for old ladies. It's good for their ego but no hope of getting anything like the expected outcome. The only jobs they create are for the officials working within them.

[@whut9245]

your demographic of viewers must be rich as hell on average to be getting a sponsor that requires a minimum 10k investment

[@QASIMARA]

Or it's a bubble.

[@faisalrabia1862]

lol

[@godfredawowani-sebuabe3013]

Did I hear just hear little and 10000 dollars in the same sentence??????

[@whut9245]

@@gdaydk percentage wise what figure of his audience do you think are traders with a spare 10k to invest? Of that small amount what percentage would want to invest in the much less transparent pre-IPO market where figures can be easily inflated and manipulated and you can lose a lot of money. I'm hazarding a guess that less than a 50 people who watched this video even signed up and maybe 5 people max spent money on it

[@AdamBechtol]

hehe

[@abdikafarabdirahman8414]

Stripe won because their primarily users were developers. All you have to do is copy a view lines of code and your payment process is done. That is magical.

[@BusinessCasual]

Having a developer-first mentality certainly helped the company succeed.

[@Benni1000games]

@@BusinessCasual I've just now seen this video but I've built multiple stripe integrated websites. Their APIs and documentation are the best I've seen so far. Those guys know what they're doing and developers love it.

[@projectjt3149]

@@Benni1000games taking in what the video said about Stripe, there’s definitely a “Made by Developers for Developers” vibe about their creation

[@jebactychpolicjantow5497]

@@Benni1000games yeah i dunno. The relationship between prices and products, as well as their refusal to act as a CDN for resources about my products are silly.

[@benzflynn]

Plus the fact that they are the cheapest around when all fees and charges are totted up.

[@TheBejbiborn]

Some has said it already, but I wanted to really stress this: Stripe is being used so widely in the e-commerce space right now, because they have achieved a perfect balance between being user-friendly and developer-friendly. As a developer Stripe's API was probably the most pleasurable to integrate with in my life. Not only it's very well thought, but their documentation is very clear and provide code snippets for all major webdev programming languages. They also provide tools for testing and are constantly evolving. In the same time, their graphic client is easy to use even for a person with no e-commerce and webdev experience and still does not interfere with the code. You can integrate with their API in your app and still allow your customer / sales department to use their web client simultaneously.

[@newworld3844]

That’s what made me fall in love with stripe 5 years ago. Overtime the API started to get more and more complicated but it is still far better than what we had before. I used to have nightmares trying to accept payments with PayPal.

[@MubashirAR]

Agreed. Same with Razorpay (in India). Other apis were just a big headache to work with

[@jensenraylight8011]

Ahhh.. feels so refreshing

[@MrTomtomtest]

Yep, they focused on devs first, smart as devs then recommended it to their clients. And that Paypal is a mess to deal with helped.

[@johnrobertson4396]

I have e-commerce business and E-commerce companies have huge problems with Stripe. Stripe freeze their funds and block accounts for 90 days. They held my 220k for no reason. If you want to scale with Stripe it is simply not possible. I moved away from Stripe to Uviba. Uviba is much better, our developers liked it more, very simple to use, and don't freeze accounts with no reason

[@kingtut4734]

I'm so grateful to stripe because they finally gave paypal some real competition. Paypal can no longer be the tyrant that they were before.

[@akulamashina]

Stripe are much less competent than PayPal... a very poor record for anti-fraud and merchant support.

[@beageler]

Tyrants? What is so bad about PayPal?

[@davee1233]

Square

[@johnrobertson4396]

@@akulamashina Yes Stripe held funds, it is like a joke

[@johnrobertson4396]

if you are ecommerce, just use Uviba, Stripe held funds and is terrible for ecommerce businesses.

[@devpatel7206]

Anyone other than me who was totally unaware of stripe ?

[@harshmanan2468]

Maybe you are the only one till now

[@rannvijaysingh1]

Me

[@albertchung7641]

Just found out about it recently too!

[@ChaceBonanno]

As a Lyft driver, gotta know Stripe cuz they pay me.

[@albertchung7641]

@@ChaceBonanno how much of the cut does Stripe get from you?

[@jeromediktas3414]

You should do more videos about internet companies! This one was awesome!!

[@newvertical8825]

Interesting video. I never though that this video of Stripe will come on Business Casual,this is great keep on inspiring us with videos of such great companies

[@giovannipetro]

Legends. love the fact we have two Geat Irish lads leading the way and pioneering this.

[@MAGNATEOfficial]

Am I the only one wondering why the hell did they randomly move to Argentina?

[@sebastianmolina344]

If you ever built an e-commerce store or website that collects payment you’ll be well familiar wit stripe.

[@jona_le_mus]

"as little as $10k" That's $9,900 more than my budget.

[@LesterDiaz]

Amazing growth, I use stripe in my own business and they’ve made it super simple to get paid.

[@nicknderitu6013]

As little as $10k .... I feel so poor

[@sagebreezy]

lol i wanna join

[@maxolande7431]

Usijali bro

[@AnyFactor]

They are the most fascinating founder brothers in tech

[@hagenlens1403]

Great video!

[@scarletdcruz7843]

In all honesty, stripe has a really good api and well written libraries that are documented really well. From a developer's point of view, stripe is really easy to work with. I wish more companies were like this.

[@jzk2020]

Nifty idea to live stream the premier. All the best.

[@zanelunars6174]

no one: youtube: want to know how other kids used the internet to get rich, not what you do clearing browser history and posting on social platforms how sad you are

[@entropicpedro]

This

[@Holycryptonite47]

These guys were millionaires before you were an adult *Oh how this comment section cries and screams in laziness*

[@masken8355]

North American KZbinr it's probably both

[@mso008]

These guys are tremendous

[@demetriocooper3990]

Business Casual could you please do a video on TTI, As it such a large company and is owned by berkshire hathaway. Thanks

[@my-financial-wealthblog4423]

Great insight and inspirational story for me to continue with coding self education.

[@alexanderschirmer4593]

So... What exactly do they do that makes them special?

[@abz998]

If you need to ask it's not for you.

[@beageler]

As far as I can gather they make it easier to implement their technology than PayPal. Maybe they also take a smaller cut.

[@johnrobertson4396]

@@beageler they freeze dropshipping companies' funds. I just use Uviba in this case.

[@thebigjimmyd]

1) Stripe doesn’t charge setup fees or a monthly min / service charge. They just take a % of every transaction. 2) It allows your customers to stay on your site when they use their credit/debit card to buy. PayPal redirects the customer to the PayPal site to complete the transaction which can be a turnoff and lead to higher shopping cart abandonment rates. 3) It’s super easy to use and set up. Those are the main selling points to Stripe.

[@raneshabrown4110]

@@johnrobertson4396 never heard of them

[@Nedwin]

Stripe--> Radar --> Atlas --> Issuing. The 2 young billonaire-bro's have inspired all of us, the adults.

[@kevanimea6942]

smashing contents explained in such as wonderfully way of helping out mass global problems in transaction payments way to go guys

[@ayaneshsarkar7804]

I'm just here as a Developer who integrates Stripe API to websites. I will say it's not really tough to implement once you get experienced with it.

[@andreasmafia24]

Amazing video! Can you also do a video about ripple and xrapid?

[@DevMoSofi]

Why all these dislikes? Stripe is very famous for the people who work in eCommerce, web development and those who want to start a company in the US but not able to go to the US in person and open it!

[@baldbusiness811]

This is a good analysis. However, just a critique, I don't feel the question of "what made Stripe standout from their competitors including Paypal?" was fully answered. A simple answer to this is what u/TheBejbiborn said, Stripe stood out by focusing on being great for web developers to use. I feel like this point could have been added to the video.

[@bradleynicholas457]

Nice!

[@Islam_K_Abu_Almohtade_]

Do you know how we can understand this world by listening and seeing ... i will tell you something ... good people can make money, bad people can see and listen to those good people to cure their sych problems.

[@MansaKimani]

Brilliant

[@shreyassrinivasan8550]

Hey business casual, make a video on Emirates or LG electronics please?

[@hbarudi]

Interesting company in the space of online transactions...

[@bethebest1866]

I'm pushing for this to be me soon!

[@bletapulo3557]

Wer'e counting on you.

[@nsms1297]

Bussiness Casual can you make a video on Saudi Aramco. The world's most valuable company which is going to do largest IPO.

[@bitehunter122]

Nsm S Saudi as in Saudi Arabia, the people who financed terror groups in the Middle East?

[@nsms1297]

@@bitehunter122 then who gave weapons to mujhadeen in Afghanistan in 1980s against Soviet union like stinger missiles.

[@nsms1297]

@Cyberdial qatar was found out in 2017 that it had also funded some groups. If I have to tell in order it goes like USA and some other gulf countries. Like iran backs shi'ite rebels in yemen and syria.

[@beageler]

@Bite Hunter: Yeah, the States greatest ally in the region. They like to emulate the States in everything.

[@imranrashid7997]

I still have no idea what Stripe is.

[@preciousgerbosch]

It's a payment system like Papal

[@praneetshekhar]

Because it's not in most markets yet. They're in select countries and just beta programs in other few countries.

[@ArtSmosh1274]

It's a online payment processing company for businesses that deals with credit/debit cards.

[@mytube5182]

Its interface for consumer and company for money transaction

[@JstJaybeingJay]

Guys you have to do a video on wework.they are getting lot of attention.

[@ganzlangeher]

the minimum investment at equityzen is 20k.. btw

[@beageler]

I've never even heard of Stripe. It's a PayPal clone? I was very confused that a company I've never heard of did 50% of online transactions. But that that's only in the States was only mentioned in the video, not in the description. That makes sense, 50% of the States is like 10% of the world?

[@beageler]

I don't follow? PP is 11 years older than Stripe and exists.

[@ArtSmosh1274]

Stripe is a payment processor for business to accept debit/credit card. It's for business use only not for sending or receiving money like PayPal.

[@neanda]

you don't really hear of them, they're a middleman service, a consumer doesn't use them, like they would use PayPal, companies like Amazon use them behind the scenes

[@beageler]

@@neanda Ahh, that makes sense. Thx.

[@Abhishek-iy3rz]

CODING IS THE MOST IMPORTANT SKILL TO LEARN

[@Moe_510]

I’ve been with PayPal for about 2 years now, I probably give these guys a try

[@anurgaprasad123]

1:52 Felix my catboy!

[@TheAceMoneyShow]

I use stripe for my business, and it’s been great.

[@ryanpeters3289]

Gotta have a developer-first approach

[@bitTorrenter]

Stripe? Never heard of them.

[@mytube5182]

Woww...im really inspired...

[@sanesanyo]

As someone who has used both Stripe and PayPal, I can confidently say why Stripe has succeeded and will continue to succeed. First and foremost, the founders of Stripe both were developers themselves so could easily relate to the pain developers were facing and also saw that none of the existing solutions including PayPal were solving these pain points. So clearly they built a very developer friendly solution. On top of that, Stripe is built for modern web while PayPal is still stuck in old web (in a way). PayPal API is miles behind compared to Stripe API. On top of all that, PayPal's dashboards and whole user experience is terrible in comparison. Stripe is also a lot better in terms of pricing and currency conversion rates. All in all, I can guarantee that a developer your default choice will always be Stripe over PayPal. And for all my new projects, Stripe is my first choice and will continue to be the first choice.

[@PratyakshTyagiBEE]

Hey i wanted to ask , as a junior Dev still in college how to get good ideas to built out products?

[@colors6692]

$95Billion now!

[@Leon-pn6rb]

this is a bad video cause it didn't do what it promised in the title

[@tabithavogelsong4745]

Be Careful of Stripe if you have a small business or any business for that matter. If you issue a refund for credit card charges they still keep their fees which can add up. Refunded someone full amount and was stuck with eating $3K in CC fees. Their customer service is also horrible and took me 3 days to get a wire transfer figured out.

[@jokg28]

I like your new logo.

[@dopemusic6414]

How were they able to fund their first startup? Just curious.

[@JoeEverest165]

They were funded by YCombinator that's why it became easier to get funding for them the second time. He said it in the video

[@dopemusic6414]

@@JoeEverest165 I was referring to their first startup they sold for £5m.

[@JoeEverest165]

@@dopemusic6414 3:56

[@69erone-half50]

@@dopemusic6414 Could had asked their mum and dad.

[@brokeindio5072]

They were born pretty wealthy, so...

[@reddcube]

Business innovation == don’t suck like PayPal

[@bitehunter122]

Never heard of them

[@chinmaygupta4181]

Bite Hunter same here

[@Edwin-nl3qu]

they gonna be really big. Every startup that takes payment uses them. They are at a whole new level compared to their competitors.

[@Andy-em8xt]

They don't advertise their brand much during purchases. You've probably used them before if you brought anything online. They're a competitor to paypal and competition is good for all of us

[@MubashirAR]

You would've if you were a developer. Im sure they would be having a "seamless" mode where the customer pays on the seller's website with their own custom UI, which is why you never get to know that it's stripe under the hood.

[@johnrobertson4396]

because they held funds. If you have dropshipping business, just use Uviba

[@unnikrishnanvannadil]

Indian cities are way more forward in terms of online payment. When I travel to US and Europe, I notice that strip cards instead of chip are used, no easy to use mobile wallet payment system, no easy real-time settlement options etc

[@Ziaedits688]

Asia is far ahead of the west in terms of adopting new technologies, China is the best, Singapore follows and India is doing well too

[@GodOfCodOg]

nice video but you never explained what stripe actually is and i had never heard of this company before

[@raixbox360]

7:16 "As little as $10K" My Bank Balance - £60

[@4m4d3u564]

watch the whole video but still don't know what's the difference than paypal

[@yahyanaveed5948]

Wait! What's the difference between 2CO, CCNOW and them?

[@makaiahconte]

PayPal and Stripe and Square

[@AceHardy]

👑

[@MrTomtomtest]

Stripe success is that it first focused on the developers that would be called on to integrate their products. Making the same developers recommend their solution to clients.

[@affrokilla]

PSTH GANG LET'S GO!

[@Matando]

1:55 lol Felix is an app now

[@trader96.]

People who are valuing this at $35 billion are probably the same people who valued wework at $47 billion. The smart thing for the collisons to do is to get in touch with Masa Son and dump this on him and cash out.

[@rocky6703]

PSTH here we come!

[@bmeghani88]

In terms of the service provided, what's the difference between what Stripe offers and what Paypal offers?

[@neanda]

consumers use PayPal, businesses use Stripe behind the scenes

[@PC-ot1xw]

Can someone please explain is non-technical terms how Stripe achieved to make business easier? The video doesn’t say much about what exactly is the service they provide. Also I don’t get why Thiel would fund them instead of trying to capture that market with Paypal? He’s not big on charity..

[@ArtSmosh1274]

They are a online payment processing company for business that deal with credit card and debit.

[@bitterjames]

where are the subs?

[@irhamsyahmaulana6429]

Still confused why P. thiel (paypal cofounder) invest on stripe

[@dmabhishek]

Because they sold PayPal to ebay long ago.

[@ac22750085]

Stripe is the best😀😀😀

[@iggymach]

You mean Peter Thiel, the CO- founder of PayPal, not the founder

[@saisrikargollamudi7892]

Wonderful video

[@alanmartinez9225]

Good content but so many info missing. How tf they raise the money to start up their business. Not unless there parent help them out

[@sebastianmolina344]

Y combinator startup incubator

[@BusinessCasual]

YCombinator invested in Stripe (3 minutes, 52 seconds).

[@MrTomtomtest]

As long as you are willing to invest time and got the skills, getting a software company up to fund raising level isn't that hard as it requires very little capital. My own company started out with $500, 7 years later making millions. Without raising money at all, just developed bigger & bigger projects (among several failures).

[@js-cj4vi]

@@MrTomtomtest would love to connect

[@rifkyhusein1389]

never heard of it. The valuation should be close to minimum of 100 Billions if 50% of all online transaction done in US is using Stripe.

[@BOMBON187]

Not be a dick but am I the only one who's never heard of Stripe?

[@ChaceBonanno]

But hasn't PayPal existed as an option for developers since before Stripe?

[@dotri8469]

Chace Bonanno but Paypal sucks for developers so startups hate it

[@kf5058]

Why is there a stripe ad??

[@mrinalkapri5798]

Finally paypal has to step up their game as well to be in the markets.

[@houseofvids3653]

peter thiel, the founder of PayPal. whaatt.don't let elon musk hear you say that.

[@BusinessCasual]

Thank you for catching this typo! We meant to say "co-founder" not "founder". PayPal's 6 founders consisted of Peter Thiel, Max Levchin, Ken Howery, Luke Noesk, Yu Pan.

[@ayushmanpadhy3497]

Super

[@navaneethambati]

Video on amazon

[@oliverkemp7846]

Amazing channel

[@ThoughtThrill54]

Hey Collison brothers when Strip coming to Pakistan 😊

[@thigeeshjack8246]

Are you going to kill them

[@atimanavprashant]

Never heard of stripe before. As for valuation ? 35 billion ? They would be worth the imaginary 35 billion until the day they suddenly go bankrupt. Look at the stunt wework guys pulled off. Valuation means nothing.

[@shivamkumraa]

Bro nice thoughts!. I am a developer and I normally use stripe alot in day to day life. They really did an awesome job. Before stripe it was hell lot of pain to Integrate payment system to any website. But now by using stripe it's just simply took less than 3 minutes. Their idea is awesome and literally worth 35 billion usd

[@sebastianmolina344]

I use stripe all the time when building e-commerce websites it’s really easy and most definitely a major player in the Fin tech space 👌🏻

[@atimanavprashant]

@@shivamkumraa How come i never even saw there logo anywhere ? Never heard about them.

[@thienvamai]

@@atimanavprashant because they don't show up, stripe is a payment processing service, websites send requests to stripe to process payments. You don't see it because you as a consumer are not their customer, the websites and the developers are.

[@rollygalon1776]

As a senior web developer, I would say stripe is million times better than paypal. On site payment, subscription, etc. without having to upgrade to business account. Multiple webhooks and simple test account is just brilliant.

[@InvestingEducation]

Cool a video on a wednesday?

[@bxbank]

This doesn't explain exactly what Stripe resolved. $35B for a payment system in competition with Tyro or Square or PayPal? We need another payment system?

[@Doom_C]

this is what I was wondering too

[@sarl40]

Thats like saying why shoud toyota make cars or bmw or chevrolet or gmc or ford or lexus or nissan or kia or mazda or tens of other car brands all in competition with each other? We need another car brand?

[@Doom_C]

@@sarl40 not a good comparison. We buy cars for how they look, that's the main selling point of a car besides the fact they have different utility in terms of power. What I just said about cars, their selling point, and how they are different, is what they should've addressed in the video

[@naiirb]

$psth you’re welcome

[@neomashego]

/dev/payments

[@opsoc777]

sudo rm /bin/paypal

[@shreyassrinivasan8550]

Damn....this channel makes quality content, can see the effort behind every video...Keep going Business Casual!

[@BusinessCasual]

Thank you - we try!

[@c1yd3i]

Paid shill.

[@theoneandonlyworldruler418]

with bitcoin you dont need a middleman.

[@nakisha1213]

Has anybody had issues with not getting paid through stripe ????

[@666Sensei]

Me. Keeps closing my accounts.

[@theendoffaith5903]

Do yourself a favor do not use Stripe, they don't care harming small businesses or freelancers in the process, what they do is all your transactions will be approved whether they are fraudulent or not so you ship the products o provide the services whatever the case may be, then a month later when all the chargebacks comes, they will leave you holding the bag. their claim process is a joke, making you responsible for fraudulent transactions, how is that possible if you do not have any control over that.

[@matkun4194]

Tommy hilfiger please?

[@alanmartinez9225]

Ralph Lauren

[@DK-ul3lo]

Love it

[@sheepay99]

They have strange accents considering where they grew up

[@ro-deo119]

It's a nice story but it felt like an for stripe