How is the US dollar valued

$ 35 billion valuation: Stripe leads the way for FinTechs

A company from the financial sector was among the ten most valuable listed companies in the world in the second quarter of 2019. The bank JP Morgan Chase from the USA made it to 10th place - in the previous quarter no financial institution was in the top list. The development is well known: In the past few years, the big tech companies from the USA and China have increasingly displaced oil companies, conglomerates and financial groups from the top positions.

+++ Focus Channel: FinTech +++

$ 250 million round of capital: Stripe almost catches up with Airbnb

The (unlisted) US FinTech Stripe with its online payment solution is still a long way from these top positions. In a recent $ 250 million financing round by General Catalyst, Sequoia and Andreessen Horowitz (among others), the company was valued at $ 35 billion. So it plays in a category with Airbnb. FinTech is just over a factor of 100 away from JP Morgan Chase, with a market value of around 360 billion US dollars.

At the beginning of the journey

It is of course unclear whether the B2B company Stripe will ever make it into the top tier. The rapid development of the valuation - in a capital round at the beginning of the year it was still at 22.5 billion US dollars - suggests that there are still some places to be made up. A possible IPO is not even under discussion. Co-founder and CEO John Collison says there are no plans yet. The company, which was founded in 2010, is still relatively at the beginning of its journey.

Amazon, Booking, Uber - the customers are already there

A very good foundation stone was laid. The FinTech's customer list with its online payment solution running in the background includes e-commerce giant Amazon, hotel booking global market leader booking.com and travel service giant Uber, as well as many other companies where online payment is an integral part of the concept . So the big fish as customers are already there. Stripe's further growth is therefore less dependent on additional new customers than on an increase in online payment volume per se. "Even now, in 2019, less than eight percent of all trade will take place online," says John Collison on the occasion of the current capital round. "We are now investing in building the infrastructure that will drive e-commerce in 2030 and beyond".

Maximum scalability

Like many other FinTechs, Stripe also benefits from a simple fact that has already brought the world's major banks to where they are: Consumers can choose between car, subway and bicycle or between hotel, private accommodation and camping site - they have to pay they definitely. Products come and go - money stays. The business with money and in special payment are not only - in the long term and viewed as a whole - crisis-proof. They also offer perhaps the highest level of potential scalability among any industry. So far, Stripe has succeeded in making good use of this.

Convenience and Security

And the share of online trading in the total volume mentioned by Collison shows: The growth opportunities in online payment, but also in other FinTech areas, are still enormous. The prerequisite for success is to satisfy customers on the B2B and B2C side with a combination of convenience and security. It is the challenge that the challenger banks by and large master well and thus, unlike Stripe, attack the big banks directly.

Work for everyone, not against everyone

But: The Challenger banks have the chance, in the best case, to join the list of these big banks, or to push some of them off the list. Solutions like Stripe, on the other hand, can in the best case be established as a standard that (almost) everyone uses. US FinTech is well on the way there. And it paves the way for FinTechs in 2019: work for everyone, not against everyone. This means that Stripe, as a company in the financial sector, could also make it very high in the long term.

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