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Stripe doesn’t power money transfers, just commerce. So 100% of stripe volume is economic activity.
by rprend 9mo ago
Stripe doesn’t power money transfers, just commerce. So 100% of stripe volume is economic activity.
- est31 9mo agoIf I buy something worth 17$ from an SMB's website, and the SMB buys their ingredients from their merchants via stripe for 10$, then those suppliers get a bill for 8$, then that's still only 17$ of GDP, but 35$ of stripe transactions.
- rprend 9mo agoYou’re absolutely right i didnt think of that. Isn’t this what they call velocity of money? So we’d need to calculate the “velocity of stripe” (the flow of dollars within the system).
- csomar 9mo agoI think the parent is correct in saying that’s an economic activity though it’s not GDP (Gross Product). It’s difficult to do circular transactions with no “economic value” in stripe the same you can do with bank accounts/wallets.
- Sebguer 9mo agoDo you consider Wise.com to be 'commerce'? Love when people make up percentages and facts!
- notpushkin 9mo agoWise does accept cards for transfers, but I think most people use cheaper methods. (Also, last time I checked, they’ve used Adyen.)
- yanosc 9mo agoWith all due respect, this comment demonstrates a misunderstanding of basic economic concepts. Gross domestic product is not simply “economic activity” but a measure of value creation. The mere movement of existing value through transactions does not, by itself, constitute economic production, which is why comparing transaction volume to GDP is misleading.