San Francisco start-up Stripe Aims to Push U.S. Further Away from Cash

Apr 21, 14 San Francisco start-up Stripe Aims to Push U.S. Further Away from Cash

Stripe, a San Francisco-based tech start-up, is aiming to deal the killing blow to cash use in the United States. The company has already racked up $120 million in investments. Of those investing in Stripe, the most notable is the Founders Fund, owned by PayPal co-founder Peter Thiel. Stripe’s services are simple enough. The company offers businesses a computer code they can use to process credit card payments. It’s fast, it’s easy, and it’s convenient, both for consumers and the businesses they shop with.

Stripe Aims to Capitalize on the Move Away from Cash

Stripe isn’t alone in its push to make plastic transactions easier, though it is notable because of the support it’s garnered from the Founders Fund. Companies like Stripe make an increasing amount of sense. In the last five years, reliable online payment solutions have seen a huge growth in demand as consumers continue their move away from shopping in brick-and-mortar stores and spending cash towards the digital world of eCommerce. Helping Americans make the final push away from cash likely means good things for companies relying on eCommerce revenue, but it could also mark huge potential savings for the U.S. economy, which spends an estimated $40 billion a year to keep cash in circulation.

Convenience Equals eCommerce Revenue

At the end of the day, what will make Stripe, PayPal, and other services looking to streamline payment processing successful is convenience. The ability to find anything you could possibly want without ever having to change out of your pajamas and head to the store has been a huge driver of eCommerce success over the last decade. According to most recent estimates, eCommerce levels across the globe will expand to an astounding $1.5 trillion by year-end 2014, and growth won’t stop there. If Stripe and other ambitious start-ups have their way, cash will die but eCommerce websites and the online payment processing solutions that make them go will thrive.

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