The ultra-fusional relationship of Stripe and Amazon has been going on for 5 years but will become all the more serious from today. The competitor of PayPal, Square, or even Adyen has just indicated that it would strengthen its links and seek to expand more widely in Amazon products (Prime, Video, Kindle, Audible, Amazon Pay), and in allowing the Irish startup to benefit from access to the “computing infrastructure” of AWS (Amazon Web Service).
“We couldn’t operate without AWS, and we wouldn’t”, remarked David Singleton, who runs the Stripe machine from a technological point of view. Amazon does not want to seek to appropriate the payment either and has understood that fintech solutions, more powerful and profitable, also push further in simplicity for consumers so that the barrier to purchase is no longer there. a.
Survive the recession
It is a future victory by KO which is looming. On the market, the news risks making PayPal in particular cringe. Sales volumes in e-commerce are at half mast and the various players are likely to have to deal with market consolidation. Two years ago, there was still something for everyone as the health crisis drove the online payment community to record levels, and low interest rates allowed players to offer new kinds of micro -consumer credit such as split payment (very lucrative).
For Stripe, the news is also a lifeline in this storm where its revenues have also been affected. For the third time in less than a year, the company has lowered its valuation, this time down 11%, for a total reduction of 40%. It is now worth around 63 billion dollars (internal valuation), far from 95 billion dollars in 2021. This earned it a postponement of an IPO and a significant difference in its transaction volume compared to 2020 (5,000 transactions per second, 200,000 new businesses registered).
At the historic competitor PayPal, the troubles are on a whole different scale and investors no longer believe in it. Between July 2021 and November 2022, the payment fintech launched in 1998 saw its market capitalization drop by three quarters and its stock has not recovered since. Its objective of doubling its number of users by 2025 is no longer, and its rate of customer acquisition has slowed considerably.