Yahoo Finance Stripe Crosses $1 Trillion In Total Payment Volume As Consumer-Fueled Debt Binge Reaches New Heights
Stripe announced a milestone in its 2023 annual letter: surpassing $1 trillion in total payment volume.
This marked a 25% increase compared to the previous year, showcasing the platform’s remarkable trajectory in facilitating global transactions.
“With $1 trillion in payment volume, the output of businesses operating on Stripe now represents approximately 1% of the world’s GDP [gross domestic product],” the statement said, highlighting the platform’s integral role in powering the global economy.
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Stripe’s success has been propelled by its appeal to a diverse clientele, ranging from early-stage startups to established enterprises.
Used across 2.8 million websites, some of its customers are industry giants like Atlassian Corp., Zapier, Uber Technologies Inc., Instacart and Shopify Inc., affirming its status as the go-to payment solution for businesses of all sizes.
"Our enterprise segment continues to grow rapidly, with more than 100 companies now processing more than $1 billion per year with Stripe," according to the letter.
Amid Stripe’s growth, the broader e-commerce industry has witnessed a large expansion.
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In the United States, e-commerce experienced a 7.6% surge in 2023, with total sales increasing from $1 trillion in 2022 to $1.12 trillion.
E-commerce sales accounted for 15.4% of total retail sales in 2023, showing a significant portion of spending driven by online platforms driving consumer spending.
As e-commerce activity has increased, so has consumer debt.
The convenience of online shopping has made it easier for consumers to make impulse purchases, contributing to a $212 billion increase in household consumer debt in the fourth quarter of 2023, reaching a record high of $17.5 trillion in 2023.
A significant portion of this consumer debt stems from credit card balances, which increased by $50 billion to $1.13 trillion in the same quarter.
Total credit card debt in the U.S. surpassed $1 trillion for the first time in the second quarter of 2023, marking a 14.1% increase for the one-year period ending Dec. 21, 2023.
Stripe witnessed its most prolific four-day consumer spending spree during Black Friday/Cyber Monday, with over 300 million transactions amounting to $18.6 billion.
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This article Stripe Crosses $1 Trillion In Total Payment Volume As Consumer-Fueled Debt Binge Reaches New Heights originally appeared on Benzinga.com
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