Visa pumps money into payments startup Stripe, now worth $5 billion
Stripe
The news was reported earlier by Re/code and the New York Times.
Stripe sets itself apart from other payments services by being the programmer-friendly backend "plumbing" that enables apps and online stores to take payments from anybody, anywhere.
Stripe counts companies like Facebook and Lyft as customers, helping them accept credit card payments while being totally invisible to end users.
It competes with the likes of PayPal Braintree, the payments juggernaut's own developer-focused division.
Visa's investment comes with a partnership. Basically, Stripe will take advantage of Visa's security know-how to help protect shoppers' financial information, and Visa will tap Stripe's technical expertise to work on new kinds of digital payments.
American Express, too, is both an investor in and partner with Stripe, with the startup powering American Express Checkout, the company's Apple Pay mobile payments competitor.
That report indicates that the company took in less than $100 million in this round, which also included participation from new investor Kleiner Perkins Caufield & Byers. This news confirms a rumor that was swirling back in May.
In 2014, Stripe raised both a Series C and a "Series C-1" round, led by Founders Fund and Thrive Capital respectively, for $150 million in financing just during that year. An additional $100 million round would bring its total venture capital financing up to $290 million total, with $250 million of that raised in the last 18 months.
NOW WATCH: How Apple Pay Could Destroy The Credit Card
- Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
- Axis Bank posts net profit of ₹7,129 cr in March quarter
- 7 Best tourist places to visit in Rishikesh in 2024
- From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
- 7 Things to do on your next trip to Rishikesh