India currently has over 19,000 technology-based start-ups. Stripe, one of the largest start-ups in the world, is the latest entrant and has launched in India with the vision of supporting transactions in Indian businesses and expanding their market to the home of 500 million internet users.
Stripe allows businesses to accept payments from across the globe. It is currently functioning in 23 countries, including Japan, United States, and several European countries. Recently a beta version of Stripe was launched in India with an invite-only group of a few companies.
Anand Balaji, the former executive of Amazon India, joined Stripe last year to lead operations in India and build localised markets.
Balaji published the news about Stripe’s launch in India on his blog.
Patrick and John Collison founded Stripe in 2010, and Elon Musk and Peter Thiel, the co-founders of Paypal, were one of its earliest backers. Visa, American Express, and Sequoia Capital, all payment companies have also invested in the app.
Today, Stripe is valued at $9.2 billion and reportedly has raised $450 million.
According to Balaji, in 2016, India saw more than twice the number of new businesses start as the United States, and this is one of the reasons why Stripe might work wonders in India.
As for the benefits for Indian clients, Stripe lets you link your account to a local bank account. People around the globe, irrespective of whether Stripe has been launched in their country or not, will be able to transfer funds here.
The platform also allows for business transactions in as many as 130 currencies!
Balaji says, “With Stripe Atlas, we’ve already been able to help some Indian entrepreneurs build and scale global companies. However, we believe that by operating locally in India—with the ability for Indian companies to connect their local bank accounts to Stripe and get paid out in rupees—we can help support even more businesses in the years to come.”
With apps like Paypal, PayU, Razorpay, and Mobikwik already functioning in India, competition is fierce for the newly launched Stripe. However, it allows for local as well as global transactions, which can work for its benefit.
The Digital India campaigns also work well for the Elon Musk-backed app. Currently, about 81% Indians prefer online transactions over other non-cash payments. According to a report by Google and Boston Consulting Group, the digital payment industry in India is estimated to reach $500 billion by 2020. The report also estimates the current number of merchants who accept online transactions to multiply ten times by 2020.