Yes. Stripe’s 2.9% fee minus interchange (interchange is variable, on average 1.9%) is higher than Mastercard or Visa’s take of .14%.
But it’s not so simple, because Stripe faces liability for merchant fraud. If you are high volume you negotiate IC+, where the plus is .1%-.4%.
The valuations price in expected growth as well as unit economics. Mastercard doesn’t have as much room to grow because cards already saturate consumer payments.
But it’s not so simple, because Stripe faces liability for merchant fraud. If you are high volume you negotiate IC+, where the plus is .1%-.4%.
The valuations price in expected growth as well as unit economics. Mastercard doesn’t have as much room to grow because cards already saturate consumer payments.