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Kickstarter Drops Amazon Payments for Stripe (2015-01-30)
No matter what the project, Kickstarter has been providing funding for many young and aspiring entrepreneurs according to technology magazines. The famous online crowd-funding platform made headlines recently when it chose to change its payment service from Amazon Payments to Stripe, a lessor known company that also handles transactions.
The news was shock especially for Amazon which already has over 200 million credit cards on file and was trying hard to make use of their vast database of customer payment information. Stripe was itself a start which was launched back in 2012 by two brothers, Patrick and John Collison. And while the new decision is unfortunate for Amazon and their Amazon Payments service, Stripe is all set to take over in the coming weeks.
On the other hand, Kickstarter insists that it is trying to make its service more user-friendly and interactive across multiple platforms. Something that Stripe is already intimate with since the service already manages the payments of Reddit, Twitter and Facebook, along with working on the Apple Pay payment system as well. The new payment service deal will only make it easier for Kickstarter to be able to create a common online payment infrastructure which allows users to move their payments across multiple payment platforms just as easy as content. And is seems like Stripe is up for the job.
Regarding the change in payment system, Kickstarter has already announced on its blog and technology magazines, that from now on Stripe would be handling the entire credit card transaction process of their website. The company also says that the new payment service will make things simpler for creators and backers who now no longer have to create an Amazon Payments business account whenever they want to pledge money to a project of their choice.
Kickstarter has used Amazon Payments to process their transactions ever since it’s launch in 2009, and has handled more than $1.2 billion in funds for various startup campaigns for Kickstarter. The latest agreement is without a doubt good news for Stripe as it is trying to reinvent the online payment system with its new service. The recent change took place when Amazon decoded to move customers towards its new ‘Login and Pay’ product which was different from the previous system that was agreed upon by both the companies. This is what forced Kickstarter to review its payment processing options.
Ending Note
According to the pundits, mobile payments are estimated to hit over $1 trillion by the next couple of years, and is looking towards a steady rise in the future as well.
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