Strategy Shift: Stripe De-Couples Payments From Tech Stack

Stripe, the leading payments processing provider, has announced it will remove its payments service from its broader financial services technology stack in a move to make its products more easily accessible for merchants. 

The fintech giant, which has most recently been valued at US$65bn and processed a marked US$1tn in payment volume over the past year, has changed its strategy after increased competition from the likes of Adyen and PayPal. 

Stripe: De-coupling payments from its tech stack

Now that Stripe’s payments service is unbundled from its tech stack, companies will no longer be tied to processing payments with Stripe in order to access its other products. 

It frees merchants up to use other payment providers should they wish, while still having access to Stripe’s wider services portfolio.

The move away from Stripe’s previous approach is done so to attract new large-scale organisations as clients. 

John Collison, Stripe Co-founder, says: “As we’ve gotten into these larger and larger customers, they have more constraints, you’re dealing with different parts of the organisation, and so this makes it easy to adopt the best parts of Stripe.” 

Constant innovation at Stripe

Alongside this shift, the payments processor has also announced new embedded finance features to its product suite, as well as a new selection of AI tools. 

It comes as American Express joins its enhanced issuer network and new partnerships with leading US card issuers including Capital One Financial and Discover Financial Services. 

Speaking at Sessions, Stripe’s annual conference earlier this week, Chief Product Officer Will Gaybrick says: “We’re extending our modularity to the very core of Stripe: payments processing. 

“All of Stripe’s products will gracefully inter-operate with third-party processors.”

This slew of announcements comes as part of Stripe’s mission to enhance the GDP of the internet, aligning closely with the shifting innovation needs of businesses and merchants across the globe. 

Among Stripe’s other aims for 2024 is to better support its clients and partners in navigating the complexities of the payments landscape with its new tools, and leverage AI to achieve further sustained growth. 

It also hopes to make its platform more modular, to better accommodate the diverse requirements of its users.

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