Stripe's Vision and the Future | Disrupt Europe 2013 | Summary and Q&A

Summary

In this video, Patrick Collison, the co-founder of Stripe, discusses various topics related to the company's growth and the payments industry. He talks about the attention and high expectations that come with having a high-profile supporter like Paul Graham, the acquisitions in the industry and their impact, the future of payments and the potential of micro transactions, the valuation of startups, the challenges and opportunities of expanding internationally, and the importance of building a global payments system.

Questions & Answers

Q: How does the attention from high-profile individuals like Paul Graham affect Stripe?

Patrick acknowledges that the attention and acknowledgment from high-profile individuals like Paul Graham is generally a good thing for Stripe. It validates their work and shows that others take them seriously. However, it also adds pressure and raises expectations, which can be challenging.

Q: How does Stripe handle the responsibility of handling payments for its users?

Patrick acknowledges the high stakes involved in handling money and the pressure it puts on Stripe. If Stripe has a problem or is down, their users lose revenue, so there is a lot of responsibility to ensure smooth operations. They are aware of the high expectations and are constantly working to meet them.

Q: How does Stripe keep its employees grounded despite the attention it receives?

Patrick explains that the prevailing mood within Stripe is one of stress and hard work. They are constantly focused on improving and overcoming challenges, so there is little room for employees to get ahead of themselves. The company culture emphasizes hard work and humility.

Q: How is Stripe's product and company evolving?

Patrick says that Stripe is doing very well and exceeding their expectations. They are handling billions of dollars in transactions annually, which is a significant achievement. He also mentions that they are now at a point where they can think about changing the ecosystem and building new products, which is exciting for the team.

Q: When a competitor like Braintree gets acquired, how does it affect Stripe?

Patrick sees the acquisition of Braintree by PayPal as a positive thing. It shows that PayPal recognizes the problem and competition in the market and wants to fix it. He believes there will be more direct competition in the future and sees PayPal's move as a commitment to solving the problem, which ultimately benefits Stripe.

Q: Does the acquisition of Braintree by PayPal put a ceiling on Stripe's growth?

Patrick doesn't worry about the acquisition putting a ceiling on Stripe's growth. He believes there is still a lot of potential in the payments industry, with only about 2% of consumer spending happening online. He sees Stripe as a global payment system and a pillar of the internet that is yet to be built, so the opportunity is still vast.

Q: How does Patrick view the giant valuations of pre-revenue companies in the tech industry?

Patrick sees the valuations as fairly justified, especially for companies like Uber, Airbnb, and Pinterest. He believes these companies are building generation-defining businesses and have strong business models. He thinks the valuation of companies depends on their potential and the opportunities they can tap into.

Q: How does Patrick view the importance of payments compared to advertising on the internet?

Patrick believes there is a shift happening in the importance of payments compared to advertising. He mentions the decline in cost per click and the rise of transaction-based business models. He sees the potential for smaller transactions and micro payments to replace traditional advertising models, especially with the increasing use of mobile and app stores.

Q: Can Stripe be used by anyone in the world to sell online?

Patrick explains that Stripe aims to be a global payment system that can be used by anyone. They started in the US due to logistical reasons, but they are expanding to other countries. They are making it easier for businesses in other countries to accept online payments and are aiming to cover the entire global population.

Q: How does Stripe reach out to developers in different countries?

Patrick acknowledges it's important to have a local presence in different markets. They have teams on the ground in various regions to help with implementation and provide support. However, he also points out that there is a global developer community that is largely the same, so education and outreach efforts can be similar across different countries.

Takeaways

Stripe has experienced significant growth and success in the payments industry. The attention and high expectations that come with their achievements are both positive and challenging. Their focus is on building a long-term company and continuing to innovate in the payments space. The acquisition of Braintree by PayPal is seen as a positive sign for the industry and a commitment to solving problems. Stripe believes there is still a lot of potential in the payments industry, especially as more of the world comes online. They aim to be a global payment system and are expanding to various countries. Their focus is on providing a seamless payment experience for businesses and consumers worldwide.