Payments

Stripe updates payments platform and rolls out card issuing

  • The payments platform announced three major updates.
  • Stripe Issuing, the first self-serve card issuing API, is now available to all US businesses
close

Email a Friend

Stripe updates payments platform and rolls out card issuing

Stripe announced three major updates to its payments platform to help its millions of users increase their revenue: worldwide direct connectivity to six major card networks; Stripe Issuing, now available to all US businesses; and a revenue optimization engine.

Direct platform connectivity: Stripe now processes card transactions through direct integrations with all six major card networks.

  • Direct connections to the card networks can reduce latency and remove potential points of failure for customers compared to relying on intermediaries.
  • Stripe’s platform connects directly to Visa, Mastercard, American Express, Discover, JCB, and China Union Pay across global markets.
  • Stripe claims it now handles more than 250 million API requests a day — and often upwards of 10,000 per second — while maintaining 99.999 percent uptime.

“Over the last several years, Mastercard has been collaborating with Stripe,” said Sherri Haymond, Mastercard’s executive vice president, digital partnerships, North America. “Stripe’s direct connectivity to Mastercard not only allows us to bring innovative payment technology to market faster but also builds an environment of connected intelligence that reduces fraud on suspect transactions and increases approval rates on valid ones.”

Emphasis on enterprise: Stripe wants to continue to support the growing needs of customers like Shopify (handling Black Friday-level traffic every day) and Instacart (experiencing a 300 percent increase in customer demand year on year).

  • Stripe has added new enterprise clients Zoom, Westfield and Just Eat in 2020.

Card issuing: Stripe recently released Issuing, a fully programmable infrastructure for card issuing.

  • It’s the the first self-serve product for issuing new contactless cards,
  • Stripe Issuing reduces the time required to create a card from around a couple of months to two minutes for virtual cards or two days for physical cards.
  • Zipcar, Carrot and Postmates are using Issuing to create hundreds of thousands of cards every month to manage how drivers, employees and couriers spend money.
  • Stripe Issuing is now available to all Stripe users in the US. 

“Stripe Issuing is a big step forward,” said Alex Rampell, general partner at Andreessen Horowitz.

“Not just for the millions of businesses running on Stripe, but for credit cards as a fundamental technology. Businesses can now use an API to create and issue cards exactly when and where they need them, and they can do it in a few clicks, not a few months. As investors, we’re excited by all the potential new companies and business models that will emerge as a result.” 

Impact of the changes: The COVID-19 crisis is rapidly accelerating the move to digital.

  • For young businesses, today’s announcements mean increased revenue, reliability, and global reach.
  • For Stripe’s enterprise customer base, which includes Wayfair, Peloton, Zoom and Instacart, today’s updates can help maximize authorization rates as they respond to spikes in demand. 

“As businesses around the world respond to the new normal, they’re rethinking how they engage with customers more than ever,” said Mark Nelson, vp of billing platform at Twilio. “It’s critical that our payments infrastructure is highly reliable as we elastically scale in response to customer demand.”

Revenue optimization: For firms responding to surges in demand, Stripe deploys micro-optimizations to help them generate extra revenue by improving authorizations.

  • By applying machine-learning technology used in its fraud-prevention tool Radar to develop bank-specific profiles, Stripe dynamically routes, adapts and retries transactions to maximize authorization rates.
  • This is a big data challenge, as each of several thousand individual banks interprets and processes transaction requests differently.
  • Stripe’s revenue optimization engine is expected to generate an incremental $2.5 billion for Stripe business customers this year, according to the company.

“This extra revenue would’ve been welcome under normal circumstances, but it’s critical in times like these,” said John Collison, president and co-founder of Stripe. “The Stripe team will keep shipping updates like these — from home — so our customers receive every penny they’re due.”

Directly connecting to payments networks can help improve authorization rates while keeping fraud constant. “Inappropriate declines are expensive by-products of the legacy payment infrastructure,” said Thad Peterson, Senior Analyst at Aite Group.

“By connecting directly with the payment networks and optimizing authorization rates with machine learning, Stripe provides merchants with a real opportunity to increase revenue and transaction speed.”

0 comments on “Stripe updates payments platform and rolls out card issuing”

Outlier OpinionsMakers

Member Exclusive, Payments

Payments Briefing: Stripe launches fiat-to-crypto widget to simplify Web3 purchases

  • This week, we take a look at Stripe’s new fiat-to-crypto payment offering and what it means for the crypto industry.
  • We also discuss the potential benefits and pitfalls of implementing the Federal Reserve’s instant payment service, FedNow, for B2B transactions.
Ismail Umar | December 08, 2022
Payments

Quick take: Behind Wise and Deel’s new feature for global payroll

  • Wise recently partnered with payroll and HR platform Deel to create a feature that would help the latter’s customers transfer funds for payroll more efficiently.
  • The product announcement may feel like just another drop in the bucket, but it does point to an emerging trend regarding cross-border payments.
Rivka Abramson | December 06, 2022
Payments, Power of Payments Podcast

Power of Payments Ep. 19: Stripe’s Josh Ackerman on the changing nature of online checkout

  • Josh Ackerman, Product Lead at Stripe, joins host Ismail Umar on this week’s podcast.
  • He talks about the existing gaps between consumer expectations from online checkout and what most merchants currently offer, as well as how the checkout experience has evolved over the years.
Ismail Umar | December 02, 2022
Member Exclusive, Payments

Payments Briefing: What we know so far about Twitter’s payments plans

  • This week, we explore Elon Musk’s plans for Twitter’s entry into the payments market.
  • We also take a look at Citi’s new integrated solution for institutional billers.
Ismail Umar | November 18, 2022
Payments, Power of Payments Podcast

Power of Payments Ep. 18: Chase disrupting rent payments, MoneyGram’s crypto expansion, and more

  • This week, we discuss why JPMorgan Chase is launching a digital rent payment solution, and how Americans plan to use more flexible payments this holiday season.
  • We also talk about MoneyGram’s recent crypto expansion, and the potential role of digital currencies in the remittance industry.
Ismail Umar | November 18, 2022
More Articles