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> I'm sure they won't be paying Stripe the standard 2.9%, but still--what value does Amazon get out of this? These deals are priced on a cost-plus basis. Amazo
by ghostingbanana 4y ago
> I'm sure they won't be paying Stripe the standard 2.9%, but still--what value does Amazon get out of this?
These deals are priced on a cost-plus basis. Amazon might pay Stripe the cost of the underlying network fee plus .1% or half of cent.
Stripe negotiates fees with leverage.
note Stripe is publicly commuting to AWS in this announcement. It’s likely that the exchange here is “we use you for payments and you commit to $Xbn in AWS spend.”
Similar to MSFT and OpenAI. We give you billions, you spend it right back on Azure.
- di456 4y ago> Stripe negotiates fees with leverage. Same with Amazon's leverage for vendor negotiation. They will go for stock warrants if it's a big enough deal and they have the right leverage. More upside that way and it creates a competitive moat. No idea if that's the case here though.