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Visa is valued at $585B and Mastercard is valued at $444B. Is Stripe making more revenue per transaction than Visa and Mastercard?
by syedkarim 7mo ago
Visa is valued at $585B and Mastercard is valued at $444B. Is Stripe making more revenue per transaction than Visa and Mastercard?
- notpushkin 7mo agoI would be surprised if Stripe has made less per transaction. Visa and Mastercard make way more transactions though.
- zipy124 7mo agovaluation's are based on future returns, not current returns. If one believes they are growing and visa and mastercard aren't then the valuation might make a little more sense. (though I can't comment on the actualities, only the potentials).
- rprend 7mo agoYes. Stripe’s 2.9% fee minus interchange (interchange is variable, on average 1.9%) is higher than Mastercard or Visa’s take of .14%. But it’s not so simple, because Stripe faces liability for merchant fraud. If you are high volume you negotiate IC+, where the plus is .1%-.4%. The valuations price in expected growth as well as unit economics. Mastercard doesn’t have as much room to grow because cards already saturate consumer payments.