Stripe has democratised online payments and reshaped the digital economy
wired.co.uk
wired.co.uk
I'd award that to PayPal and the work they did over a decade ago. Also see Braintree (not used), Square (not used) et al
Conclusion: it did reshape things quite a bit on this side of the planet.
But that doesn't mean it 'democratized' anything. If anything it centralized the market merely by being the only good option in a market run by "MBAs" which was in desperate need of real software/design talent.
Nothing wrong with greatest from pure market dominance by delivering real value to customers.
Besides Stripe apparently isn't purely free and open (ie, not holding strong values outside of the purely commercial marketplace) to everyone, when they are declined services to Gab.ai unless they stop 'serving adult content' which is lawyer speak to attack them for allowing unsavoury people to exercise free speech. As bad as some Gab users are I don't think it's the payment processors place to enforce some terms of service or speech policy on their customers. As long as Gab deletes illegal content (which they claim they do) then I dont see why they shouldnt be allowed to run a service with a legitimate free speech policy.
You can't really put this on stripe, a big part of how good their product is is that they hammered out contracts with everyone who provides debit/credit card services. Those some companies have been blocking payments to the sex industry for years, as well as other groups they consider unsavory (recall Visa blocked donations to wikileaks). The financial institutions involved did not give up that clout when they signed on with stripe.
> The untold story of Stripe, the secretive $20bn startup driving Apple, Amazon and Facebook
I then did a control-F to look for how Apple is involved, and it only appears two other times. Once in a discussion about a WiFi pineapple, and then as a tag at the bottom of the page.
Do Apple and Amazon really use stripe for their payments? I've certainly never noticed any stripe branding.
If it weren't for stripe, Apple and Amazon would have absolutely no way to accept payments? Lol.
I saw the title of the article and had to do a lookup - the word democratised; it's a terrible choice here. This makes it sounds like stripe somehow made crypto send and receive easy.
They've done nothing of the sort. I'd say they have actually increased the chokehold monopolization of the major CC issuers instead.
If they used their clout to change the game, great, but they haven't.
You made some API things easier for developers - congrats. You are like paypal from a decade ago, but with 2.0 docs, and modern code for developers - except that paypal is actually helping more people take payments that are in threatened groups these days, and stripe just goes along with the censorship upstream and makes it easier to deploy.
Even coinbase is doing more to "democratize and reshape the digital economy" (not that they are doing it as well I had hoped they and others could).
Funny thing is that it may be because of stripe that paypal is allowing itself to be used at more sexual places on the web (could also be that Obama and Holder have left and the current has changed from that direction as well)
I get it that companies are in a tough spot against the credit card companies - even governments are. On top of that, some of the tough things about the CC rules are indeed because of various governments and their pressures. It's a touch nut to crack, even walmart had trouble battling just a few parts of the CC monstrosity.
I still have hope that some kind of p2p easy to use bit-pay-like system does indeed democratize and revolutionize the payments system - something like firechat that is unstoppable. I would just not call stripe that system.
Services like Apple Pay, Apple Pay Cash, Apple Pay on the Web, and iPhone Upgrade Program are pieces of a larger (if relatively slow-moving) strategy.
[1] In early 2014 Apple boasted of having 800+ million iTunes accounts, most of which have one or more associated credit cards. In September 2014, Bono leaked that Apple had shared a figure of 885 million. https://9to5mac.com/2014/09/22/u2-bono-apple-itunes/
[1]: https://9to5mac.com/2018/09/22/apple-tv-adult-content-origin...
I would say reshaping the digital economy would definitely entail direct competition with the big players like Visa and MasterCard. Lower the ridiculous percentages that these corporations fleece merchants with and then maybe I'll think differently.
My strong personal belief is that cryptocurrency is not just an experiment for a small percentage of nerds but will in fact become the normal mode of payment on the internet. When cryptocurrency payments become practical and popular that will start reducing Stripe's market share or whatever.
I am putting a lot of faith in the efforts to scale up Ethereum.
If I sell things for $10, and only making 10% profits, that is $1. If Stripe charges me 3% + 30c, that 30c is like 30% of the profits gone.
But honestly - isn't Stripe just a really clean and useful set of API's for transactions? I mean, a 'developer first' mentality towards payment systems?
All the power to them, I've used them and like them ...
But can anyone tell me why this is revolutionary/democratizing?
What Stripe did do was offer lower fees and a great API, and I did switch to them and have never regretted it - but, democritising digital payments? Pfft!
I think Stripe did a good job, but I don't think it's anything but a better-mousetrap here, and not one that's going to change anything fundamentally, architecturally etc.
AirBnB, Uber, Facebook, Twitter - for better or worse they really changed things. Even Dropbox lead a new kind of 'persona cloud storage' movement, which is a change. Stripe ... not so much.
Stripe did change the way smaller companies did business. But Paypal allowed anyone to accept payments.
A firm I worked with did booking for sports camps. The tech was positive-- give the coaches neat rosters and record keeping, and let parents easily pay the camp fees with a credit card.
The original architecture was to let the individual programs plug in their preferred merchant processing account; assuming Authorize.net or the like by default, and they'd just add their API key during the onboarding process. We'd bill them our fees once a month and it would slot into their business accounting neatly.
Wrong. These guys weren't running grown-up businesses with documentation and full-scale merchant accounts. They were basically half a step above collecting Mrs. Crampknicker collecting $10 bills for field trip deposits from fourth graders. So it ended up that the booking site acted as the merchant, and treated the coaches as fulfillment providers. We'd end up having to cut them checks once a week for the net after our fees.
With Stripe Connect, we had them click a link in their user control panel, walk through a three-screen enrollment form on the Stripe side, and then they were getting a direct deposit as soon as payment cleared, without paper or manual intervention.
Yeah, you could pull together a bunch of seperate services before to get the same results, but Stripe Connect put it within the reach of a team with 1 1/2 developers.