Why Stripe is becoming the transaction layer of the internet

Editor’s Note:

During Apple’s announcement, Twitter effectively became our live stream after the frustrating technical difficulties. Jasdev, a friend from Imgur, was most intrigued by Apple Pay's partnership with Stripe. I asked him to elaborate on his message for our audience. 

Update: Stripe is working with Facebook to enable purchases in the News Feed.

Processing payments online from users is a tough nut to crack. Obstacles range from fraud and security to dealing with thousands of regulations. Historically, the problem has been so hard that some very smart people came together in the 90s “dot-com” boom to start PayPal. PayPal’s ability to route money between two parties was invaluable to Ebay, whose business depended upon transferring money between buyers and sellers. As a result, Ebay purchased PayPal for $1.6 billion in 2002. 

Since then, there’s  been an explosion of Internet companies driven in large part by the diminishing costs of creating software. The building blocks of creating a software business are widely available through APIs. An API allows one piece of software to “talk” to another piece of software. In other words, if someone has built something useful and made an API for it, you don’t have to build it yourself. This allows startups to focus on developing their product instead of reinventing the wheel. One of the most important of these building blocks is processing payments. Stripe, a relatively young company, is increasingly gaining developer adoption and becoming the payment processor of choice for Internet companies.

At its core, Stripe is an API that allows online businesses and applications to easily accept payment from their users. Their business model of charging a 2.9 percent fee, plus 30 cents, of each transaction succeeds when their customers succeed. Morever, Stripe shines in three vital areas and as an engineer heavily involved in developer relations, I am enthusiastic about the startup’s future.

Agility in adopting new technologies

Landing key deals


Developer support and evangelism


The next few years will be critical in their journey to win over developers and fend off competitors like eBay’s PayPal and other financial companies. However, with its current trajectory, Stripe is silently on its way towards becoming the transaction layer of the Internet.