Stripe: Platform of Platforms

Embedded financial products open up entirely new revenue streams to productivity software companies that were previously only accessible by financial institutions. Fintech APIs (like payments from Stripe) allow companies to monetize not with expensive subscriptions but through financial instruments that were previously the purview of banks.

Stripe’s strategy, however, is focused on the long tail. It has millions of customers (including 1 million via Shopify) compared to ~3,500 for Adyen. It likely makes its margins on the long tail, while keeping prices low for big companies like Shopify for two reasons: 1) to keep Shopify away from competitors and 2) to collect the massive data from ... See more

Remain a Platform, or become an Aggregator?