Stripe has announced a handful of tidbits that underscore the fast-growing fintech startup’s aspirations in Europe.
Thus far, Stripe has only been fully available to businesses in the U.K., Ireland, Denmark, France, Spain, Norway, Finland, and Sweden. But as of this week, another six markets have been added to the mix: Germany, Switzerland, the Netherlands, Austria, Belgium, and Luxembourg.
Founded by Irish brothers Patrick and John Collison, Stripe serves as the technical and banking infrastructure that allows businesses and individuals to accept online payments. The company has garnered more than $400 million in equity financing from big-name backers since its inception back in 2010, including CapitalG (Google), Sequoia Capital, Andreessen Horowitz, American Express, and Elon Musk. For many, the company is a prime candidate to go public, but Stripe CEO Patrick Collison stated recently that he has no intentions of pursuing an IPO anytime soon.
Aside from the new market launches this week, Stripe has also announced a new payment routing infrastructure for Stripe Connect in each of its European markets.
By way of a quick recap, Stripe Connect is a key offering for the San Francisco-based company, a product that was relaunched two years ago with a firm focus on powering on-demand marketplaces such as Kickstarter, Lyft, Instacart, Shopify, Jinn, and TaskRabbit. Stripe Connect delivers the back-end technology for such marketplaces to sell to consumers globally, including identity verification, tax reporting, and support for multiple currencies.
Last month, Stripe lifted the lid on a new payment routing infrastructure for Stripe Connect in the U.S., enabling three new types of payments: “many-to-many” (e.g. a gym membership platform that receives payments from multiple people each month and then has to redistribute the funds to various gyms); “holding funds” (e.g. for payouts at different times, such as when a crowdfunding platform like Kickstarter allows a creator to receive funds at various stages of a project); and “account debits” (e.g. some marketplaces charge sellers subscriptions or a fee per transaction — now they can directly debit those accounts).
These new payment mechanisms are now available to Stripe Connect users in Europe, in addition to the company’s existing one-to-one and one-to-many payments.