Stripe is an Irish-American financial services company that operates from San Francisco, US, and Dublin, Ireland. Stripe offers a Software as a Service (SaaS) platform. Overall, it provides payment processing services with an application programming interface for e-commerce websites and mobile apps. The company has quickly become a dominant name in the online payments market due to its services.
Stripe started its operations in 2009 and provided a basic platform. Over the years, however, it has expanded its services significantly to cover a higher market share. The company currently provides payment processing services, which is its primary income source. Apart from that, it also offers corporate finance and other services.
Overall, Stripe was never the first name in the industry to provide payment processing services. Therefore, the company landed in a market that already had significant competition. On top of that, it also has gained several other competitors to its business. Some of the top Stripe competitors and alternatives include the following names.
1. PayPal
There is no doubt that PayPal is the largest name in the online payment industry. However, it is more of a payment facilitator than a processor. Despite that, it is one of the leading names in the online payments system market. PayPal also has the highest user base, holding a significant portion of the overall market share.
PayPal started its operations in 1998 as Confinity and later merged with X.com. The company reported revenues of $21.45 billion, which is the highest in the industry. Similarly, PayPal facilitates billions of online transactions in a year. The company provides an alternative to Stripe when it comes to online payments. However, PayPal may also compete with the platform through its subsidiaries.
2. Square
Square is an American financial service and digital payments company. The company started its operations in 2009 and is one of Stripe’s top competitors in the market. Square provides several devices and products that facilitate merchants in receiving payments. Apart from its primary payment processing service, the company also has several other business ventures.
Square reported revenues of $9.49 billion in 2020, with a net income of $213.10 million. Both of these figures are an increase from the 2019 numbers. However, Square does not form a perfect alternative to Stripe’s services. Despite that, the services provided by Square can be attractive to any merchants looking to increase their payment processing options.
3. Venmo
As mentioned above, PayPal also competes with Stripe through its subsidiaries, essentially Venmo. Venmo is a mobile payment service that allows users to transfer funds to others through its app. It primarily focused on individuals who send money to others. However, it has also expanded its operations to cater to the needs of merchants and businesses.
Venmo started its operations in 2009 and later became a subsidiary of PayPal in 2013. Its primary product includes its mobile app and website, which facilitate all payments. However, its services are not similar to what Stripe provides. Despite that, it offers merchants the opportunity to receive payments through mobile without significant changes.
4. Adyen
Adyen is a Dutch payment processing company that facilitates e-commerce, mobile and point-of-sale transactions. Similarly, it offers merchants online services when accepting electronic payments through banks, credit cards, debit cards, and online banking. The company started its operations in 2005 and currently covers a high portion of the European market payments.
However, unlike Stripe, Adyen does not focus on a similar userbase. Instead, it aims at facilitating B2B payments. The company also handles back-end payments for several well-known brands, for example, Facebook, Netflix, and Uber. Adyen also covers the North American market, where its revenues have increased substantially over the years.
5. Google Pay
Due to the increase in the demand for mobile payments, several well-known brands have entered this market. One of these names includes Google, one of the top technology companies worldwide. Through Google Pay, Google extended its operations to the mobile payments market. Google Pay is a virtual wallet application that allows users to use their debit cards on mobile.
Google Pay allows users to transfer funds from their bank accounts to the platform for free. They can also use their payment cards for contactless payments in stores. However, it does not cater to the same userbase as Stripe. Similarly, its disadvantage includes only being available to Android users. Despite that, it makes a well-known competitor in the online payments market.
6. Amazon Pay
Like Google, Amazon has also extended its services in the online payments market. The company launched a payment service platform known as Amazon Pay in 2007. Although it has existed for a long time, Amazon Pay has not gained traction in the payments market. One of the primary reasons for this inability has been the platform’s availability on the Amazon ecosystem only.
Despite its low adaptability, Amazon Pay has the advantage of serving all Amazon users. This feature allows the platform to offer its services to over 6 million Amazon sellers. For businesses involved in the Amazon ecosystem, Amazon Pay is a substantial option for online payments. Despite not impacting the same section as Stripe, Amazon Pay is a name to consider for online payments.
7. GoCardless
GoCardless is a UK-based company founded in 2011 by Tom Blomfield, Matt Robinson and Hiroki Takeuchi. The company offers a platform that enables customers to pay businesses online. These payments may come through recurring or one-off bank payments or automated clearing house transfers. Its primary market share involves facilitating B2B transactions.
GoCardless operates in over 30 countries and facilitates billions in online transactions. The company has remained private and received millions in fundings throughout the years. Through these funds, it has improved its operations and increased its users. Similar to some other names, the company does not provide similar services like Stripe. However, it provides a substantial alternative to its services.
8. Braintree
Braintree is another well-known name in the online payments market. The company also connects with Venmo, serving as its parent company. Braintree acquired Venmo in 2012 but later went through an acquisition itself when PayPal bought it for $800 million. However, the company continues its operations and facilitates billions in transactions each year.
Braintree currently operates in over 45 countries and regions. The company provides businesses with the ability to accept payments online or within their mobile application. Similarly, it allows automatic shopping cart integration with PayPal and other payment types. However, its integration may require some development experience and coding knowledge.
9. Payoneer
Payoneer is another prominent name in the online payment market. The company provides online money transfer and digital payment services. Similarly, Payoneer has been operation since 2005. However, it provides services to a specific market, which some other names on this list do not cover. Payoneer also has several integrations with well-known online platforms, including Google, Amazon, Upwork, etc.
Payoneer provides users with several services, including the ability to send and receive funds through its e-wallet. The company also specializes in cross-border B2B payments in over 200 countries and territories. The company primarily operates in the financial services market. Despite its services, Payoneer does not pose a significant threat to Stripe or its business. However, it serves as an alternative to it.
10. 2Checkout
2Checkout is an electronic payment service that has existed since 2000. The platform allows merchants the ability to accept online credit card payments from customers. It is an all-in-one monetization platform that enables businesses to expand their operations internationally quickly. It is one of the top Stripe competitors across several markets.
2Checkout allows users to optimize their e-commerce pages with various features. The company covers over 200 countries with 45 different payment methods. Apart from its primary services, it also provides other features, such as global sales tax handling, VAT management, global compliance, etc. For digital businesses, 2Checkout is a viable option for online transactions.
Conclusion
Stripe is a payment processing platform that allows merchants to receive mobile payments from customers. The company has been operational since 2009. Over the years, it has provided outstanding services to its users. However, it has also attracted competition from several other platforms. The list of the top Stripe competitors and alternatives includes the names mentioned above.
