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The margins on payment processing are extremely slim. While the amount they process makes their revenue look extremely high, Stripe actually makes money by sell
by likeabbas 4y ago
The margins on payment processing are extremely slim. While the amount they process makes their revenue look extremely high, Stripe actually makes money by selling other products based in their ecosystem. If you process all of your payments through Stripe than they can offer you very nice products such as radar and tax reporting.
The issue is that the large companies who use stripe for payment processing are moving towards using multiple payment processors, which removes the leverage Stripe has to upsell you on their other products. This trend is growing and will ultimately send Stripe the way of PayPal IMO
- jeffybefffy519 4y agoI tried integrating Stripe into a product I am building at the moment and decided to move to Paddle. In the end, Stripe was very complicated for a service that is not end to end complete for delivering digital products and services. The price for Paddle is higher but its a complete service and so much easier to implement. Some really basic and frustrating things I ran into with Stripe: - invoices only generated for subscriptions, not one off products - email receipts not generated in sandbox mode (undocumented but confirmed with their support) All in all, i left stripe thinking it’s probably not a product designed for solo devs but is instead for services at scale like Shopify.
- twelve40 4y ago> send Stripe the way of PayPal is that bad though? I know paypal managed to piss off a lot of people, and the stock is down, but they are making money and don't seem to be going away anytime spoon. They try to keep themselves relevant with acquisitions and so far haven't made any stupid public moves like layoffs. Doesn't seem like a bad endgame?