Stripe expects that by the end of 2023, the total volume of transactions processed by the company will amount to $ 1 trillion.
For comparison, last year, this platform, which provides payment services, processed financial operations, the total amount of which is equal to $ 800 billion. Taking into account last year’s result, the implementation of the plan for 2023 seems realistic. The company informed investors about its intentions. There has been no public statement on this matter and, likely, there will not be one.
If the company’s goal is achieved, Stripe will demonstrate a landmark financial turnover of $1 trillion based on the results of 13 years of activity. This is a good result for the industry. For example, PayPal was able to achieve this indicator in 2021 after 21 years of active activity in the financial services market.
Stripe’s payment volume increased by 25% last year. In 2021, the company’s performance was more significant. Then the growth in the volume of payments was 60%. The slowdown in the increase in this indicator in 2022 is explained by the decline in e-commerce activity after the lifting of restrictions related to the coronavirus pandemic.
The company also informed its investors that in 2023 it expects to receive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for $ 100 million. In 2022, the firm lost $80 million.
During the ongoing negotiations with investors, Stripe seeks to provide conditions that will allow the firm to be valued at $ 55 billion.
This information appeared three weeks after reports that the company is exploring the possibility of either going public or allowing employees to sell their shares during 2023.
Stripe has employees and investors who want to be able to sell their shares. The company needs to raise capital, so a direct listing is more likely than an initial public offering (IPO).
At the end of January, it became known about Stripe’s intention to attract additional financing for $ 3 billion from existing investors as part of the transaction, the value of which will range from $ 55 to $ 60 million. Negotiations on this issue have been underway for several months.
Since the beginning of this year, the firm has stepped up efforts to establish partnerships with other companies. For example, an agreement was reached that BMW’s North American division would use Stripe as the company’s main payment infrastructure for pre-orders of cars in the United States and online purchases with extended guarantees. The firm has also become a strategic payment partner of Amazon in the USA, Europe, and Canada.
As we have reported earlier, Stripe Scores Amazon Deal.