September 18, 2019
Studying the properties and composition that make up the FinTech ecosystem
Welcome to this week’s industry analysis with the FinTech Chemist. While I may not be literally mixing solutions and preparing reagents, I am studying and testing out the latest and greatest in FinTech. It’s just reality that sometimes elements, metals, and even companies are more valuable than others. This happens to be the case for payments giant Stripe. Considered the world’s most valuable private FinTech company, Stripe is valued at $22.5 billion after its recent round of funding. Let the gravity of that sink in. Stripe is worth more than some established countries' GDP! So, what have they been up to lately?
Last week, Stripe dropped the news that it is officially launching a corporate card to enhance and scale its business offerings further. Aptly named the Stripe Corporate Card, the product is targeting small businesses and startups in the US that utilize Stripe’s payment platform. According to a recent article in Bloomberg, “The card will aim to solve what the company says is a challenge for smaller companies that have trouble securing cards to buy supplies and to issue to employees.” Stripe is hoping to simplify spending for companies that mainly rely on the internet to conduct business. Small-business cards are projected to reach about $700 billion in transactions by 2022, according to payments consultant Mercator Advisory Group.
The Visa card offers a plethora of perks, including no annual fees, late fees, or cost for foreign transactions. Not only will users reap partner benefits such as credits with Amazon Web Services, 50% off on Expensify for 6 months, and $150 in Google Ads, they’ll also receive 2% cashback on the top two categories where they spent the most. (And 1% cashback on everything else!) Not to mention, your cashback balance is automatically credited to your monthly bill, so you’ll never lose out on rewards.
From the Stripe website, business owners can:
As reported by TechCrunch, “The move is another major step ahead for Stripe as it continues to diversify its business and bring on more financial products to become a one-stop-shop for e-commerce and other companies for all the transactions they might need to make in the course of their lives.”
Stripe is also now available in 8 European countries, and US businesses can send payouts to 45 countries with more coming soon. Now, onto my next scientific… I mean FinTech hypothesis adventure. And, as always, remember to take your vitamins!
Read the previous edition of The FinTech Chemist.