Finance & Economics

Stripe Confident in Web Economy Despite Significant Slowing

The Stripe payment company processed transactions totaling more than $817 billion in 2022.

Stripe Confident in Web Economy Despite Significant Slowing

Source: motionarray.com

The relevant information is contained in the annual letter to the company’s users from co-founders Patrick and John Collison. The amount of transactions processed for the year is 26% higher than the same figure recorded for 2021.

The co-founders of the company noted that the indicator, the positive value of which is not subject to dispute, demonstrates a slowdown in growth compared to the dizzying results that were observed in 2020 and 2021. They also expressed absolute confidence in the long-term prospects of the Internet economy.

The co-founders separately noted that they are encouraged by the development of millions of enterprises that the firm serves against the background of epidemics, wars, banking crises, negative situations in the energy sector, high volatility, inflation, and supply chain failures.

The letter separately draws attention to the fact that every year more than 100 companies process payments using the Stripe toolkit in the amount of more than $ 1 billion. Since 2018, the growth rate has been more than 50% annually.

Last year, the number of new businesses using Stripe increased by 19%. The US market is the main one for the company. At the same time, 55% of the firms that joined Stripe last year are not American.

The letter was written a few weeks after the payment company raised $6.5 billion in investment funds following a funding round during which the firm was valued at $50 billion. In 2021, the cost of Stripe was $95 billion.

The company intends to use the investment funds to implement efforts to provide liquidity to current and former employees and to repay withholding tax obligations related to remuneration for equity. This will result in the retirement of Stripe shares, which will compensate for the issuance of new shares to Series I investors.

The media reported in March that Stripe’s funding round was dictated by a $3.5 billion tax bill. Stripe slashed’s internal score has been raised three times since 2022.

Stripe’s letter pays special attention to the company’s interaction with the creator of ChatGPT OpenAI and the large-scale use of artificial intelligence. The co-founders note that most AI startups use Stripe.

In March, Emily Glassberg Sands, head of information and data processing at Stripe, spoke about the start of the implementation of the OpenAI monetization strategy. She also noted that interaction with the developer of technologies based on artificial intelligence helps the company to carry out the process of its own evolution towards becoming a financial center for the digital economy.

As we have reported earlier, Stripe Expects to See $1 Trillion in Payments Volume in 2023.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.