On Tuesday Stripe also announced a partnership with Visa, one of the world's largest credit card companies, in which the two will work on ways to improve digital transactions. The companies said they expected to collaborate on initiatives like payments security, as well as software like website "buy buttons."
Stripe said it would rely on Visa's global footprint to expand its international availability. Stripe is currently available to businesses in more than 25 countries, and hopes to expand further with help from Visa.
"As Stripe thinks about the best ways to move the overall payments ecosystem forward, the biggest determinants on the financial side are the credit card networks," Patrick Collison, co-founder and chief executive of Stripe, said in an interview. "We hope to continue working closely with them."
That Visa is partnering with Stripe instead of a larger payments processor is something of a coup for the start-up. Visa has become increasingly wary of other payments companies, such as PayPal, which processed more than $220 billion in online transactions last year and this month was spun off from its onetime parent, eBay. While PayPal has handled online credit transactions since the early days of e-commerce, Visa said it became concerned by PayPal's ability to siphon customer relationships away from card companies and steer customers to debit transactions, in which PayPal sees healthier profit margins.
More from the New York Times:
Stripe, an e-commerce start-up, raises $70 million
Stripe makes a bet on marketplaces with new product
US mobile payments market to boom by 2019, research firm says
"They also have a very big business that they then use our transactions to mine from, to disintermediate our clients' relationship with us," Charles W. Scharf, chief executive of Visa, said of PayPal in a conference call with Wall Street analysts last week.