PayPal IPO Vs Stripe Future
VentureBeat: PayPal started trading on the Nasdaq this morning at $41.46 per share. As an independently traded company, Paypal is already valued at roughly $50B. Compare that with eBay’s market cap of about $33.64B. After spinning off PayPal, eBay’s stock was trading down at $26.89 this morning.
This is PayPal’s second stint as a publicly traded company. It first debuted under the ticker symbol PYPL in 2002. Shortly thereafter it was acquired by eBay.
PayPal is at the center of a booming market for mobile payments. Major players like Google, Samsung, and Apple have all launched mobile wallets to cash in on the wave of shoppers making purchases from their smartphones. These pioneering shoppers aren’t just paying through apps on their phones or on mobile web browsers, they’re using their phones to transmit credit card information to a growing number of retail establishments that accept NFC payments. Read the full article
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TechCrunch: PayPal Shares Pop 8.3% Following eBay Split Valuing PayPal At More Than $50B
BusinessInsider: PayPal Is Now Worth More Than Netflix, eBay, And Twitter
Wired: Why Good Ol’ PayPal Still Has A Future
The New York Times: Stripe, at least, an e-commerce start-up based in San Francisco, which announced on Tuesday that it had raised a new $70M round in venture capital. The round, which includes Sequoia Capital and Thrive Capital, values Stripe at $3.5B, twice the amount the company was valued at less than one year ago. Stripe, however, is still very small compared with PayPal, which some have estimated could be valued at $100B after it is split from Ebay, its parent company, next year. Stripe must fight to woo merchants who have long been accustomed to using PayPal as an online checkout service. Read the full article
TechCrunch: Payment processing company Stripe is now valued at $5B following its latest round of financing. Beyond adding more money to its coffers, the five-year-old company inked a deal with Visa which will see the duo work together on a range of projects, including digital transactions and security.
Investors that participated in this round included KPCB, Visa, Amex and Sequoia. Stripe didn’t confirm exactly how much money it raised – other than that it is below $100 million – but its new valuation represents a large jump on the $3.5B valuation it held when it closed its most recent $70M round in December. (That valuation, incidentally, was double its previous one.)
The company has been focused on growing its international footprint for some time, which is another reason it is teaming up with Visa. CEO and co-founder Patrick Collison told The New York Times that Stripe will lean on the payment giant’s international presence and know-how to expand its current coverage of 20 countries. Read the full article
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Forbes: It may be more than a year out from the presidential election, but there is already a clear winner in the race for the White House. All candidates sided with Stripe, which received more than $800,000 in total donation processing fees from eight different campaigns last quarter. Read the full article