Stripe Inc., an online payments processor, said it received an investment from Visa Inc. as part of a $100 million funding round valuing the startup at $5 billion.
Visa, the world’s biggest payments network, also announced a partnership with Stripe to help fuel the startup’s global expansion. In addition to Visa, existing Stripe investors Kleiner Perkins Caufield & Byers, Sequoia Capital and American Express also participated in the funding round, said Kelly Sims, a spokeswoman for San Francisco-based Stripe.
Unlike PayPal Holdings Inc.’s Braintree, Stripe doesn’t compete directly with credit card companies. The company makes it easier for websites and mobile applications to process credit cards and other third-party forms of payment.
“Stripe aims to give developers the tools they need to create the most secure and novel buying experiences,” said Patrick Collison, the chief executive officer and co-founder, said in a statement. “Our partnership with Visa will accelerate our ability to expand to markets around the world, and give developers even more control over the end-to-end experience.”
Visa’s partnership with Stripe will also focus on improving the security and reliability of its processing system, the companies said.
For more, read this QuickTake: Credit Card Security