Stripe Announces $1 Trillion in Total Payment Volume for 2023

• In its annual letter published on Wednesday, Fintech giant Stripe announced that it surpassed $1 trillion in total payment volume in 2023, representing a 25% increase from the previous year.
• Stripe's growth was attributed to its enterprise business, startups adopting its products, and billing and tax services by co-founders and brothers Patrick and John Collison.
• "Stripe president John Collison stated in an interview with Andrew Ross Sorkin on "Squawk Box" that a significant amount of time was devoted to the top-line growth."

In its annual letter published on Wednesday, Fintech giant Stripe announced that it surpassed $1 trillion in total payment volume in 2023, representing a 25% increase from the previous year.

The milestone, which marks 15 years since the company's founding, provides insight into the financials and growth rate of one of the world's largest private companies. In contrast, the company surpassed $1 trillion in total payment volume in 2021, 23 years after its establishment.

Stripe's growth can be attributed to its enterprise business, fast-growing startups adopting its products, and billing and tax services, according to co-founders and brothers Patrick and John Collison.

Stripe president John Collison stated in an interview with Andrew Ross Sorkin on "Squawk Box" that aired Wednesday that the company spent a considerable amount of time concentrating on top-line growth.

"Despite predictions of doom and gloom last year, consumer spending has remained strong."

Stripe's latest tender offer valued the company at $65 billion, up from its previous valuation of $50 billion, but still below its 2021 high of $95 billion.

"By denying the existence of a new economic reality, startups only harm themselves," Collison advised Sorkin. "Our focus has always been on shareholders and providing them with liquidity, which is why we conducted tender offers last year and this year."

The company's annual letter also revealed a surprising stat about startups.

Although the frosty conditions for startup fundraising in 2021 resulted in a six-year low, according to PitchBook, the Collison brothers claim that their data shows startups founded in 2022 are generating revenue at a faster pace than those founded in 2019. Notably, artificial intelligence companies are outperforming other sectors.

At the height of 2021, things became chaotic, and startups began to prioritize more profitable growth, as Collison explained to Sorkin on "Squawk Box." He added that the high inference costs for AI products meant that paid products from these startups emerged much earlier than from other companies.