Stripe's demand-driven crypto strategy is worth stealing 👀; European InsurTech giant keeps shining bright 🦊; Zepz to lay off 26% of the workforce, and it’s not about efficiency 🤔
FinTech is Eating the World, 18 May
Hey Everyone,
TGIF! On today’s plate, we have Stripe whose demand-driven crypto strategy is worth stealing (what it’s all about + a deeper dive into Stripe), European InsurTech giant keeps shining bright (or how wefox keeps crushing it), and Zepz which is to lay off 26% of the workforce (it’s not about efficiency + some deep dives). Let’s jump straight into the fascinating stuff 🌶
Stripe's demand-driven crypto strategy is worth stealing 👀
The news 🗞 FinTech giant Stripe remains committed to exploring cryptocurrency payments and is actively considering how digital currencies can be integrated into its plans.
Let’s take a quick look at this.
More on this 👉 According to Axios, John Collison, the president of Stripe, emphasized the company's recognition of crypto's potential and its usefulness in specific applications, particularly in situations where it outperforms traditional fiat payments.
Collison specifically highlighted cross-border transactions in countries with weak payment infrastructure as an area where crypto excels.
Following the consumer 💸 Stripe intends to follow consumer demand to determine which aspects of cryptocurrency to prioritize. This approach allows the company to align its efforts with the areas that present the most significant opportunities and address the specific needs of its customers.
We must remember that Stripe has had a mixed experience with cryptocurrencies. While it was one of the early adopters of supporting crypto in 2014, it faced limited user adoption and subsequently scaled back its operations. However, the company has since launched a crypto toolkit of APIs, partnered with FTX (before its collapse), and introduced fiat-to-crypto payment solutions and a crypto onramp.
✈️ THE TAKEAWAY
Why this matters? 🤔 Stripe's continued interest in cryptocurrencies despite the market turbulence over the past year is significant. It demonstrates the company's confidence in the utility of digital assets and their potential use cases. This confidence could inspire other payment providers to follow suit and develop their own crypto operations. Looking ahead, industry forecasts anticipate a 16% growth in crypto payments this year, reaching a total value of $9.28 billion. Yet, the unpredictable nature of the market may deter many financial institutions from fully embracing cryptocurrencies. Stripe and other firms that allow market demand to guide their investment decisions may gain a competitive advantage in navigating this evolving landscape.
ICYMI: Stripe is diversifying beyond payments 💳 [a deeper dive into Stripe + a ton of bonus reads]