Former senior executive at Stripe Inc
- Stripe’s use case positioning across the payments industry
- Growth normalisation following pandemic-driven expansion
- Market dynamics and competitive positioning in Europe and North America vs players such as Adyen (AMS: ADYEN), Checkout.com, Fidelity (NYSE: FIS), Fiserv (NASDAQ: FISV) and Global Payments (NYSE: GPN)
- Growth opportunities within new service offerings and emerging markets
- Macroeconomic backdrop as it relates to Stripe’s growth outlook
Can you provide an overview of Stripe’s operating environment, highlighting 2-3 key trends or drivers we should monitor?
How would you size Stripe’s TAM across the various business lines? The company claims to be “increasing the GDP of the internet.”
How does the current macroeconomic environment affect Stripe’s performance or the broader payments industry?
Do you see any outsize risk around the customer profile Stripe works with, so smaller businesses that perhaps have less capital than some larger enterprises a competitor such as Adyen would use? In a potential recessionary environment, is there a risk of being skewed towards this customer group as opposed to larger enterprises that might be more resilient economically?
How would you stack Stripe’s business against that of Adyen, Braintree or Checkout.com, perhaps using this as a case example for future performance?
Out of Stripe, Adyen and Checkout.com, who is most aggressive on pricing and who do you see winning or losing market share over the next 1-3 years? What informs that view?
How would you grade the ability of legacy players such as Fiserv, FIS or Global Payments to effectively compete or catch up with newer entrants such as Stripe, Adyen or others?
If legacy players such as FIS, Fiserv, Global Payments are capturing X% of the market today, how might that change over the next 3-5 years?
How would you compare Stripe against more entrenched players across the European markets, such as Nexi, which is capturing a substantial portion of Italy, or Mollie in the Netherlands?
Can you outline Stripe’s key growth considerations when evaluating a new geographic market?
Stripe’s processing volumes increased more than 60% in 2021, but management said this was the effect of a one-time benefit from the pandemic. What’s a realistic base for this growth over the next 1-5 years?
How should we think about net revenue in proportion to the total payment volumes Stripe processes? Can you provide an overall take rate or discuss how this rate varies across markets or product segments?
Is there a range or multiple we can apply to Adyen’s margin to get an idea of the take rate Stripe would be getting?
How would you grade Stripe’s ability to move upmarket and capture share in Adyen’s target customer base, or, vice versa, Adyen’s ability to move down to SMBs and similar businesses?
Stripe’s growth prospects are largely positive, but where could the growth story go wrong? What headwinds might the company see, or what competitive dynamics might drive less substantial growth than market expectations?
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