Ava AbbottStripe is a fintech that offers payment processing software and APIs. The company operates from in San Francisco, California, and Dublin, Ireland and allows developers to integrate its APIs with e-commerce websites and mobile apps. It was founded in 2009 by Irish brothers John and Patrick Collison.
In 2020, Stripe expanded into Europe and partnered with Goldman Sachs, Citigroup, and Barclays to launch banking services. The company plans to open offices in Dubai and the UAE to expand into the Middle East and North Africa. Stripe is ranked 2nd on CNBC Disruptor 50 list for 2021 and generated over $7 billion in revenues in 2020. [1]
Stripe serves millions of businesses worldwide and processes hundreds of billions of dollars every year. Its ever-growing list of clients includes innovative companies like Google, Uber, Amazon, and Zoom.
With a valuation of $95 billion, Stripe is now the most valuable US technology startup. In Jul 2021, Stripe began early-stage preparations for an initial public offering scheduled for 2022. But the company doesn’t need to raise money, which is why it seeks to go public through a direct listing rather than a traditional IPO. But Stripe faces strong competitors and alternatives like Square, PayPal, and Adyen. [2]
Here is an in-depth analysis of top Stripe competitors and alternatives:
1. Square
Year founded: 2009
Headquarter: San Francisco, California
Square is a robust, end-to-end payment processor that offers point-of-sale (POS) and e-commerce payments. Its software can turn customers’ devices into portable POS terminals. Square also provides Cash App, a bitcoin-enabled application that allows users to buy and sell bitcoin. More than three million customers bought or sold Bitcoin via Cash App in 2020.
For the full year of 2020, Square’s total net revenue was $9.5 billion, an increase of 101% from 2019. Its gross profit surged 45% to $2.73 billion, with Cash App generating $1.23 billion of the profits. [3]
Square and Stripe are competitors, but not perfect alternatives. Stripe works on any compatible platform, while Square comes as part of a complete e-commerce solution. Square’s all-in-one in-person POS system allows users to collect payments using customers’ smartphones. This feature can entice any merchant from Stripe. [4]
2. Adyen
Year founded: 2006
Headquarter: Amsterdam, Holland
Adyen is a Dutch fintech that offers online payments for businesses. It is not a consumer-facing platform like Stripe and other competitors. Unlike Stripe, Adyen focuses only on B2B payments. It handles back-end payments for innovative companies like Uber, Spotify, Facebook, and Netflix. In 2020, Adyen’s net revenues surged 28% year over year to $804.8 million. It saw a 27% rise in full-year 2020 earnings to $488.2 million.
Adyen is benefiting from a boost in e-commerce volumes, thanks to its robust payment processor. The company’s processed payment volume in 2020 was $356 billion, a 27% increase from 2019. Its shares have climbed more than 700% since it IPOed on the Amsterdam stock exchange in 2018. With a market value of $74.11 billion, Adyen is now worth more than BNP Paribas, Santander, and other big banks in Europe.
In 2020, Adyen’s net revenue from North America increased 70% year-on-year. The region now contributes 20% of Adyen’s total revenue. Adyen’s gains in Stripe’s home market makes it a worthy top competitor. [5]
3. Checkout.com
Year founded: 2012
Headquarter: London, UK
Checkout.com is a British payments company that focuses on large merchants. It offers all-in-one payment processing, from accepting transactions to detecting fraud and everything in between. Checkout’s software is customizable and integrates with users’ websites or apps as an infrastructure partner.
The fintech had 440 employees in Jan 2020, 940 employees by the end of 2020, and plans to hire an additional 700 people in 2021.
Checkout.com has grown from a struggling startup to a valuable firm within a few years. It raised $230 million for Series A at a $2 billion valuation and added $150 million for Series B a year later at a $5.5 valuation.
In Jan 2021, Checkout.com closed a $450 million Series C round. With a $15 billion valuation, Checkout.com is now the most valuable fintech unicorn in Europe. The company has an office in San Francisco and will open two new offices in New York and Denver. Expansion in the US threatens Stripe’s market share. Checkout.com is the fast-growing Stripe competitor. [6]
4. PayPal
Year founded: 1998
Headquarter: San Jose, California
PayPal is a leading digital payment solution that offers convenient, affordable, and secure financial services and commerce. PayPal has over 21,200 employees, about five times more than Stripe’s workforce. In 2020, PayPal’s revenue increased 20.9% to $21.4 billion. Its net profit surged 75% to $4.2 billion.
PayPal’s revenue and transaction volume have been increasing steadily for several years. In 2020, the platform completed over 15 billion transactions worth $936 billion.
It caters to more than 375 million SMBs, freelancers, and online merchants in around 200 markets globally. With over 20 years in the sector, PayPal is the most experienced Stripe competitor. [7]
5. Dwolla
Year founded: 2002
Headquarter: Des Moines, Iowa
Dwolla is a standalone ACH processor. Unlike Stripe, Dwolla doesn’t process credit or debit cards. It connects businesses to the ACH network, allowing for quick and secure verification and online payments. The platform offers ACH processing without the whole Stripe ecosystem. In Jul 2021, Dwolla closed $21 million in funding, bringing its total financing to over $71 million.
Dwolla will use the $21 million raised in 2021 to build out the functionality of its service, enhance its integration with card payments, and hire more talent. Its gross payment volume increased from $11 billion in 2019 to $20 billion in 2020.
In 2021, the platform will process over $30 billion. It also plans to expand beyond the US market into Canada, the UK, and Australia. Both Dwolla and Stripe are developer-friendly and perfect alternatives for businesses looking for customizable and efficient ACH-based payments. [8]
6. Amazon Pay
Year founded: 2007
Headquarter: Seattle, Washington
Amazon Pay is a payment processing service that handles online transactions for Amazon sellers. Merchants on Amazon marketplace pay 2.9% + $0.30 for domestic transactions. This flat-rate pricing scheme is similar to Stripe’s model. In 2020, Amazon generated $386 billion in revenues with a net income of $21.33 billion.
According to an unnamed insider, Amazon is looking to accept bitcoin payments by the end of 2021. The e-commerce giant denied the claims, but the speculation was enough to push the bitcoin value by 14.5%.
With over 6 million Amazon sellers, Amazon Pay has a substantial addressable market ready for picking. This number is projected to reach 7.5 million in the second half of 2021, which will increase Amazon Pay’s competitive edge. Amazon Pay is the best Stripe alternative for Amazon sellers. [9]
7. Venmo
Year founded: 2009
Headquarter: New York, New York
Venmo is a PayPal-owned mobile payment service that allows users to send and receive cash. The platform only caters to account holders within the US. As of Jul 2021, over 70 million customers use Venmo to transfer funds to friends and family via a mobile phone app.
In Jul 2021, Venmo announced that it is redesigning its platform to enhance users’ experience. It is eliminating the global feed that shows users’ payments to strangers. The app will only highlight payments between friends.
Venmo also added crypto support on its platform to allows users to buy Bitcoin, Ethereum, and Litecoin for as little as $1. All these changes will increase Venmo’s edge over Stripe. As a subsidiary of PayPal, Venmo has enough resources to grab Stripe’s market share. [10]
8. Google Pay
Year founded: 2017
Headquarter: Mountain View, CA
Google Pay is a virtual wallet application offered by Google Inc. The app allows registered account holders to pay using their debit cards for a fee of $0.31 or 1.5% of the total transaction. It integrates with several apps, including Kayak, Airbnb, DoorDash, and Fandango.
Users can transfer funds from their bank accounts to Google Pay and vice versa for free. They can also use their credit cards to make contactless payments in stores.
However, this service is only available to consumers with Android devices. With over 67 million monthly active users, Google Pay is a powerhouse in the digital payment space. It is one of the best alternatives to Stripe for Android users. [11]
9. GoCardless
Year founded: 2011
Headquarter: London, UK
GoCardless is a leading fintech for bank-to-bank payments. The platform operates in 30 countries and processes over $20 billion per year. Today, more than 60,000 businesses worldwide use GoCardless.
GoCardless received $95 million in funding in 2020 to accelerate its open banking strategy. In April 2021, it launched Instant Bank Pay that integrates with its global payment platform. This banking feature allows merchants to take one-off bank-to-bank payments from new and existing customers. With Instant Bank Pay, GoCardless is now one of the best Stripe alternatives for businesses with recurring payments. [12]
10. Authorize.Net
Year founded: 1996
Headquarter: American Fork, Utah
Authorize.Net is an e-payment platform for SMBs. It is a subsidiary of Visa and only allows users to accept payments, making it ideal for online stores. With more than 430,000 users, Authorize.net is one of the most popular payment gateways globally.
In April 2021, the company partnered with Everyware and CyberSource to provide payments processing solutions for enterprises and SMBs. This partnership brings together leaders in enterprise-level digital payments and two-way communications.
Users can now process payments for contactless and curbside pickup models without using an app. With over 25 years in the sector, Authorize.net has enough experience to compete with Stripe for more market share. [13]
11. Braintree
Year founded: 2007
Headquarter: Chicago, Illinois
Braintree is a payment gateway service owned by PayPal. Stripe is a third-party processor, while Braintree is a merchant account with a gateway for processing transactions online. The platform offers robust features, including fraud tools, third-party integrations, data encryption, and more.
Like Stripe, Braintree is developer-centric and offers payment processing and support globally. But the platform’s integration with PayPal’s online infrastructure increases its competitive edge over Stripe.
Businesses that require additional protection can pay for advanced security protocols like 3D Secure and Kount Standard. Braintree is the best Stripe alternative for privacy-conscious online stores. [14]
References & more information
- CNBC Staff (2021, May 25). CNBC Disruptor 50: Stripe. CNBC
- Wang, E. (2021, Jul 9). Online payments firm Stripe takes the first step toward blockbuster listing -sources. Reuters
- Gagliordi, N. (2021, Feb 23). Square’s Cash App drives nearly half of the company’s Q4 profits. ZDNet
- Barron, B. (2021, Apr 1). Stripe vs. Square: Which Payment Gateway Should You Use in 2021? Kinsta
- Browne, R. (2021, Feb 10). Adyen shares soar to a record high as the payment firm beats 2020 profit estimates. CNBC
- Dillet, R. (2021, Jan 12). com raises $450 million and reaches a $15 billion valuation. Tech Crunch
- Curry, D. (2021, Jun 13). PayPal Revenue and Usage Statistics. Business of Apps
- Lunden, I. (2021, Jul 21). Dwolla raises $21M to bring more customizable payment and money transfer options to fintechs and brands. Tech Crunch
- Datta, T. (2021, Jul 27). Amazon denies a report of accepting bitcoin as payment. Reuters
- Valinsky, J. (2021, Jul 21). Venmo is getting rid of one of its most recognizable features. CNN Business
- Jansen, M. (2021, Jul 5). PayPal vs. Google Pay vs. Cash App vs. Apple Pay Cash. Digital Trends
- Yang, L. (2021, Apr 26). GoCardless Launches Open Banking Payments. Business Wire
- PYMNTS (2021, Apr 6). Everyware Teams with CyberSource, Authorize.net to Power SMB Contactless Payments. PYMNTS
- Delaney, J. (2021, Feb 3). Payment Gateway Comparison: PayPal vs. Stripe vs. Braintree. Paper Form
- Featured image by Pickawood
Kevin Johnson
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