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eCommerce Tips & Trends

What is Stripe: What You Need to Know

Thinking about using Stripe as your payment processing platform? Check this blog out to learn more.
What is Stripe: What You Need to Know
Alexandra Ortolani

By Alexandra Ortolani

 

February 24, 2022

Key Points:

  • 3.1 million active websites use Stripe, and the payment processing platform was valued at $95.6 billion in 2021
  • You’ll pay 2.9% + 30 cents per transaction by using the payment processing platform
  • Stripe is available in the United States, most of Europe, Canada, Australia, and 46+ others, so merchants can reach their global customers

Stripe is one of the most popular payment processing platforms in the eCommerce industry. In fact, 3.1 million active websites use Stripe, and the payment processing platform was valued at $95.6 billion in 2021.

Stripe powers some of the biggest and most prominent businesses like Lyft, Blue Apron, or Pinterest. Plus, with the ability to handle 135+ world currencies, it is no surprise that millions of active websites use the payment processing platform to power their payment processing.

This blog post will tell you everything you need to know about what is Stripe so that you can decide if it’s a suitable payment method for your internet business.

Table of Contents

What is Stripe?

So, what is Strip? Stripe is an online payment and credit card processing platform for eCommerce businesses. In layman's terms, when a customer purchases an item on your internet business, the platform transfers money from a customer’s bank account into your business account via a credit card or debit card transaction.

eCommerce and internet businesses can accept payments from mobile wallets and “buy now, pay later” services like Klarna or Afterpay. Here are some examples of types of companies that use Stripe to power their payment processing:

  • eCommerce stores
  • Retail online stores
  • B2B platforms
  • Software as a service
  • B2C marketplace
  • Nonprofits and fundraisers

Check out the entire country list here to view the available countries and to understand how does Stripe work.

Benefits of what is Stripe

There’s no doubt that Stripe is a popular choice for business owners. Besides that, the payment processing platform accepts multiple currencies, and various benefits come with using this payment method for your business. Some of the most prominent benefits include:

  • Free and easy to install: There are no monthly fees or setup fees to use this payment method. Instead, you’re charged a fee per transaction
  • Integrated payment processing system: Stripe offers a single, integrated system that supports retail and eCommerce sales channels. Plus, you can accept credit card payments from mobile wallets or “buy now, pay later” services such as Klarna or Afterpay
  • An array of customization options: Stripe offers a variety of developer tools and APIs to customize your site, though you may need some coding experience o take advantage of this feature
  • Optimal security features: The payment processing platform offers TLS (SSL) and encryption which helps keep your account secure at no charge. You can also opt for Stripe Radar for anti-fraud service, though this fee is extra
  • Easy onboarding: Stripe doesn’t require a lengthy process to approve your account. In just a few clicks, you can get your account approved quickly to get your payment gateway up and running

Stripe is an excellent choice for business owners who want to do most of their business online. So if that’s you, consider using it as your payment gateway for your eCommerce business.

How Much Does Stripe Cost?

Stripe is free to use; however, you’ll pay 2.9% + 30 cents per transaction by using the payment processing platform. This fee is the same for all cards and digital wallets.

What is Stripe Payment?

For more information on tax, billing, and other costs, visit the website for a more detailed outline for what is Stripe and how does Stripe work.

How to Set Up Stripe for Your Internet Business

How does Stripe work? Setting up Stripe for your internet business only takes a few minutes. We’ll give you a quick, accessible look at how you can set it up for your business so that you can get your store up and running.

Step 1: Register your Stripe account

Visit their website and click on the “start now” button to get started with registration for your merchant account.

How Does Stripe Work?

Step 2: Verify your email address

Now, click the link provided to verify your account credentials.

How to Use Stripe

Step 3: Provide info to activate the account

Then, you'll be prompted to provide information such as the nature of your business, fulfillment details, banking information, recent credit card statement. You may also choose to add two-step verification for extra security measures.

Is Stripe Safe?

Step 4: Wait for approval email

Verification takes about 24 hours to approve your account, though it can be longer. Therefore, it’s essential to ensure all information is honest and correct to avoid delays in the verification process.

Step 5: Add Stripe as a payment gateway on the platform

Now, you can add it as a payment gateway on your eCommerce website. Depending on the platform you choose to sell on, this process may differ. For instance, if you’re using Shopify, visit the Shopify store settings and click “payments” to set up Stripe payment.

Related post: Stripe vs. PayPal: How to Choose for Your eCommerce Business

How to Does Stripe Work with Easyship?

By now, you should know all the ins and outs of what is Stripe for your internet business, so you can choose what payment method works best. As one of the most popular payment methods for online businesses, Stripe can help business owners reach eCommerce success.

Stripe is available in the United States, most of Europe, Canada, Australia, and 46+ others, so merchants can reach their global customers. But, before you get started with your eCommerce business, you’ll need to make sure you have an optimal shipping strategy to help power your store. Easyship offers an array of premium shipping tools designed to help you grow. Some of our cutting-edge features include:

  • Real-Time Shipping Rates at Checkout: Easyship shows the cheapest, fastest, and best value shipping options at your store's checkout. This feature makes it easier to be flexible with your shipping options while letting customers have a choice
  • Easyship Branding Suite: Easyship provides a delivery experience consistent with your brand. Add your logo and advertising materials to your packing slips, landing pages, and tracking emails
  • Global Fulfillment Network: Easyship ships over 220+ countries so merchants can reach their customers worldwide. Plus, with warehouse partners on four continents, merchants can be closer to their customers

Ready to ship? Sign up for a FREE Easyship account and get instant access to high-volume discounts for domestic and international shipping

How Does Stripe Work FAQ

What is Stripe? What's the difference between PayPal and Stripe?

PayPal is available in more countries than Stripe. For instance, Stripe offers options in 220+ countries, and Stripe is available in 46+ countries.

Does Stripe charge a fee? Is it easy to use?

Stripe is easy to use for eCommerce merchants. Also, it's free to use and set up for your business and you’ll pay 2.9% + 30 cents per transaction customers make. This fee is the same for all cards and digital wallets.

Is Stripe safe for debit and credit cards?

Yes, it's safe for debit and credit cards for customers that use the point of sales system.


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