Re:Stripe Is the New PayPal
by Silhouette on Thursday June 18, 2015 @03:51PM
(#9741195)
How nice that spread is does depend dramatically on the size of the transaction, though.
I'm guessing a service like Stripe has plenty of customers in B2C markets, where selling something for $10 is hardly unusual. At that price, they are only making a few cents on the transaction in revenues (not profits).
Obviously on a $100 transaction the figures work out much better for them.
I think Stripe also still charge the same rate for all card types, but behind the scenes they are probably paying significantly higher rates to some card networks than others.
I'm guessing a service like Stripe has plenty of customers in B2C markets, where selling something for $10 is hardly unusual. At that price, they are only making a few cents on the transaction in revenues (not profits).
Obviously on a $100 transaction the figures work out much better for them.
I think Stripe also still charge the same rate for all card types, but behind the scenes they are probably paying significantly higher rates to some card networks than others.