Visa has formed a strategic partnership with online payment provider Stripe to support new technologies and online payment experiences for merchants, developers and consumers worldwide. In a recent funding round, Visa, American Express and Sequoia Capital have collaborated to invest an undisclosed sum in Stripe, which is now valued at $5 billion.
With the partnership, Stripe will accelerate its international expansion, particularly in emerging markets, accessing Visa’s global footprint through its acquiring and issuing partners. As part of the agreement, the companies will collaborate on issues related to payment security and product information, as well as e-Commerce experiences such as “buy buttons.”
With Visa and American Express investing in the company, Stripe has positioned itself as an ally to credit card companies, especially since its software allows businesses and app developers to accept credit card payments quickly.
“As Stripe thinks about the best ways to move the overall payments ecosystem forward, the biggest determinants on the financial side are the credit card networks,” said Patrick Collison, Co-Founder and CEO of Stripe, in an interview with The New York Times. “We hope to continue working closely with them.”
Stripe also will be one of the first beta partners to connect to Visa’s network capabilities via APIs and SDKs, and will offer their developer community access to payment and risk management services, Visa’s tokenization service and security technologies.