San Francisco-based online payments startup Stripe raised another $70 million in funding increasing its valuation to $3.6 billion, according to reports.
Thrive Capital, Sequoia Capital, Founders Fund, Khosla Ventures and General Catalyst Partners laid out the capital which doubled its valuation to $3.57 billion since January. It begs the question, why is Stripe so darn popular when others are struggling?
Stripe, which started in 2009, has a lot of competition, including PayPal, Square and even the new Apple Pay. The difference is that Stripe gives businesses "an easy-to-use computer code they can plug into their website or mobile app to begin accepting credit-card transactions." Stripe does take about 2.9 percent from most transactions and a 30 cent commission, the same as PayPal, so it stays competitive.
The likely advantage is its ease. No messy dongles or equipment -- just code. And it's made a dent in partnering with several companies including Facebook, Twitter and China's Alibaba. It will reportedly be using the capital to expand globally, although it already is used in 18 countries.
Published at 5:56 PM PST on Dec 2, 2014