In order to take Bitcoin as a payment method to the next level, a lot of things will have to change and evolve in the coming years. Stripe, one of the few Bitcoin payment processors that are known outside of the digital currency world, has raised more funding and partnered with Visa to take their business further than ever before.
Stripe: Bitcoin, Credit Cards Money In General
One of the main reasons why Stripe has become so popular has nothing to do with Bitcoin payments, even though that is a nice bonus. Stripe is also a major credit card processor in the United States, and despite their branching out to alternative payments, credit cards remain the company’s bread and butter.
It should come as no surprise then to find out that Stripe has partnered with Visa, one of the largest credit card companies in the world. Both Stripe and Visa will be collaborating on a project to improve and facilitate digital transactions with credit cards. Buy buttons for websites, as well as payment security, are two topics lightly touched upon during the announcement.
This agreement is a major milestone for the company, especially when considering Stripe was founded just five years ago. By accepting both credit and debit card payments on behalf of merchants, Stripe quickly rose the ranks in terms of popularity. Similar to their competitors, the company charges a small fee for every transaction.
Due to the partnership with Visa, Stripe hopes to expand their international availability by quite a margin? Even though the service offered by Stripe is available in over 25 countries at the time of publication, that number will increase tremendously with the help of Visa. Plus, the choice for Stripe was easy for Visa, as the credit card company is wary of companies such as Paypal as they can siphon away customer relationships from credit card companies. After all, debit transactions are more profitable for Paypal overall, which would mean tough competition for Visa as a credit card company.
“As Stripe thinks about the best ways to move the overall payments ecosystem forward, the biggest determinants on the financial side are the credit card networks. We hope to continue working closely with them.” – Stripe Co-Founder and Chief Executive Patrick Collison told the media.
The Stripe – Paypal – Bitcoin – Visa Lovenest
There is quite an underlying competition going on between Stripe, Visa and Paypal here; and somehow, Bitcoin is getting caught up in the mix, which will hopefully help push global adoption of the disruptive digital currency. Visa is wary of PayPal’s efforts in terms of pushing debit transactions, which is a payment method Stripe also processes next to credit cards.
Additionally, Stripe also accepts Bitcoin payments, which is something Paypal has been working on through its Braintree subsidiary. Visa wants nothing to do with Bitcoin itself, even though blockchain technology might offer them significant advancements in the years to come. The world of payments is about to be shaken up quite a bit, and it will be interesting to see who will come out on top.
“Stripe is not competing with the card networks. The fact that Visa has chosen to invest in Stripe, not in PayPal, is of absolutely huge significance.” – Stripe board member Michael Moritz concluded.
Source: New York Times
Images courtesy of Stripe, Visa and Shutterstock