Fintech startup Stripe rises rapidly in price — AI’s role in it
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Stripe, an American technology company that develops solutions for accepting and processing electronic payments, invested in machine learning and Artificial Intelligence, which contributed to its rapid growth in 2024. The company’s valuation exceeded $90 billion.
PYMNTS writes about the reasons for the rapid growth of Stripe.
Why Stripe is growing
Thanks to the company’s investments in Artificial Intelligence, the total volume of payments processed through Stripe in 2024 increased by 38% to reach $1.4 trillion. It was announced by co-founders Patrick Collison and John Collison in their annual letter to the community.
"These bets continue to pay off, increasing revenue for existing customers, encouraging more businesses to switch to Stripe, and helping new companies reach significant scale unprecedentedly quickly," they noted.
According to the letter, the total volume of payments processed through Stripe in 2024 increased by 38% to reach $1.4 trillion. In the separate announcement, the company said that the tender offer, aimed at providing liquidity for current and former Stripe employees, was made in view of the company’s valuation of $91.5 billion. The buyout will be carried out jointly with investors.
According to Bloomberg News, Stripe’s valuation was estimated at $65 billion after the sale of shares in February 2024. The growing importance of AI for Stripe is driven by several factors: high demand for Stripe Billing capabilities to manage active subscriptions and the platform’s transformation into an "AI revenue engine".
"Overall, we are ensuring that Stripe is well-positioned to serve the next chapter of the economy," Patrick and John Collison wrote.
They also noted another trend in the payments industry — the growing popularity of vertical SaaS solutions, which allows small businesses to compete more successfully with franchise companies and increases the demand for Stripe’s payment services among platforms.
The company continues to invest heavily in research and development as it expects AI innovations to transform the market significantly. Stripe also helps established companies modernise their business processes and adapt to new conditions.
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