20 Comments

Packy, your post are probably my fav thing to read on Monday's. A1 content again.

Expand full comment
author

I really appreciate that, Alexander!

Expand full comment

Also, I'm bullish on stripe (top 3 fav private companies). When they go public I'm try to buy as much shares as I can. 100%.

Expand full comment
Aug 31, 2020Liked by Packy McCormick

Nice to see some irish boys doing well but why all the ink on a private company?

Expand full comment
author

We do a little bit of both around here.

Expand full comment

"One of Stripe’s biggest points-of-failure right now is that it’s built on top of existing banking and economic infrastructure..."

I disagree! It's one of Stripe's competitive strengths. By embedding itself into the Visa/Mastercard open-loop system, it captures the long-tail of every single bank issuer and bank merchant on that network. It then does the same with Amex, Discover, and regional variants to capture the whole market. Yes, that brings marginal costs similar to Spotify and the music streamers, but it's also a massive moat.

Banks don't just own the customer relationships on their end of the network, they collectively own the cultural idea of money management in their geographical market. Someone in a Western nation may cancel one card with one bank, but it'll be a monumental paradigm shift for them to move on from the idea that they need a debit or credit card altogether.

This is why Stripe will never be able to fully supplant the card networks. New payment methods layer on top of old ones, but never fully replace them. The idea of a 'cashless society' has existed since the 1960s. Everyone's still waiting for that to happen...

Expand full comment

Would you be able to explain more on what you mean by Visa and MA's open loop system?

I think the new payment fintechs (paypal, square and stripe) are built on the rails provided by the payment networks (i.e. visa, mastercard, amex, etc.) - with the exception of paypal which is also a digital wallet and depending on the method of payment (credit or debit), it bypasses the payment networks.

I would be curious to learn how much of these firms payments volume flows through the payment networks. Any ideas on how to find?

Expand full comment

google "funding mix" or "funding sources"

Expand full comment

Great stuff!

Expand full comment

Wow Packy, what an incredible post. Hard to find quality content on Stripe in an organized manner such as this article due to it being private, just subscribed.

Expand full comment

This is great! Thank you for writing this :)

Expand full comment

Great article and thanks for sharing. A few corrections: 1. Visa has not officially acquired Plaid yet and is subjected to DOJ's investigation. 2. For subscription business, switching or adding another payment processor doesn't need customers to re-enter their card info as such info is already stored in merchants' database.

Expand full comment

Brilliantly analysed. Thanks for the amazing work. A lot of insights and learnings here for company building. Obviously biased take but aren't we all?

Expand full comment

Stripe ..is it a Public company????

Expand full comment

What a beautifully well written article ano it Stripe!! Thank you so much for this!

Expand full comment

Great thought piece!

Expand full comment

Great post thanks

Expand full comment

Great post ...loved it!!

Expand full comment

Who's going to be the one to finally kill physical money/transactions... I want to pay my taxes in Bitcoin.

Lovely piece, always a pleasure to read your writing.

Expand full comment

Fantastic post, I'm also incredibly bullish on them. I would note some of the really interesting work that Stripe are doing around climate, led by @orbuch, I think this also really plays into their competitive advantage and brand. https://stripe.com/blog/first-negative-emissions-purchases

Expand full comment