Back in 2010, two Irish entrepreneurs were frustrated by the process of handling and managing online payments. They built a simple software to streamline online payments with a few lines of code and called it Stripe.

Today, from small creators to even the biggest companies all over the world use Stripe to handle all their online payments. As of 2024, Stripe has grown to a valuation of $65 billion.

"Every fintech startup aspires to build a product that clients love,” said Matt Burton, who is a partner at QED Investors.

“Stripe has now done this in many fintech categories and shows no signs of slowing down. On top of this, they are winning the recruiting war with the top talent choosing them over everyone else. Truly impressive."

But Stripe's journey is more than just a big number. It's a great example of how to build a loved brand, a product that solves big problems, and grow from a small startup to a giant.

So, grab a cup of coffee (or your favorite beverage), and let's look at how Stripe achieved such success.

Background

Back in 2010, two entrepreneurs in their 20s from Irish, John and Patrick Collison (they were brothers), launched Stripe. The main problem it was built to solve was the frustrations they experienced with online payment systems.

Both brothers joined Y Combinators to get some initial funding to kickstart their business. They would go on to raise $2 million in funding from Peter Thiel, Sequoia Capital, and Andreessen Horowitz in 2011.

Stripe originally built a very simple system to handle online payments. With few lines of code, any developer could integrate payment processing into their website or app.

Stripe made setting up payments super easy, unlike other options that took forever (months or even years!). This led to massive loyalty and credibility to their user base.

Branding

This might surprise you, but Stripe, despite being a B2B company, didn't focus on selling to businesses in the beginning. Instead, their initial target audience was a much more specific group: developers. There's a clever reason behind this strategy.

Developers are the builders behind the online stores and platforms we use every day. If Stripe could make their lives easier by providing a smooth solution, those developers would recommend it to the businesses they worked for.

By focusing on developers, Stripe could talk their talk. They skipped fancy words and focused on clean code, easy-to-use tools, and powerful features.

This built trust and fostered a sense of community – developers felt like Stripe "got them" and understood their specific needs.

Imagine a doctor talking to a patient in complex medical jargon versus explaining things in clear, everyday terms. That's the difference Stripe made in their communication.

Word-Of-Mouth

Targeting developers had a brilliant side effect: word-of-mouth marketing on steroids. Developers are a chatty bunch. When they found a payment solution they loved, they spread it to the world fast.

Developers loved Stripe and talked about it everywhere - online forums, with co-workers, and at industry events. This positive buzz made Stripe even more popular.

It also helped that Stripe broke down the walls of the traditional business model for the payments industry. “The company was wise to offer transparent pricing right from the start,” said Ian Wright, who is the founder of Merchant Machine.

This should not be confused with the best pricing, since Stripe is not the cheapest solution in the market. Yet, the payments industry was and to a degree still is stuck in an opaque pricing mindset.

Stripe keeps things clear with upfront pricing. This is a big win for startups who don't want to deal with the hassle of working with old-school payment companies.

Scaling The Business

Building a strong developer base was a fantastic strategy, but Stripe didn't stop there. They understood the need to scale, and here's how they did it:

Startup → Enterprise

Now Stripe had a loyal developer following. They added features for bigger businesses with lots of transactions and complex finances. This helped them reach more companies and markets.

Enterprise → Everyone

Finally, Stripe opened its doors to everyone – small businesses, freelancers, and even solopreneurs. This inclusivity ensured their growth wasn't limited to large corporations.

Stripe wasn't just for big companies. They knew everyone had trouble with online payments, so they made their service easy to use for businesses of all sizes.

Solving Deep Problems

In 2014, Stripe became a unicorn company. Many companies try to make more products when this happens, but not Stripe. Stripe kept things simple. They figured two products (payments and integrations with other tools) could handle most business needs.

So they focused on making those two REALLY good instead of getting sidetracked by new ideas. They went deep instead of getting scattered.

How did they do this? Here are Stripe's secrets:

1. Deep Customer Focus: They got to know their customers well. They even had high-up people study how customers used their products. Everyone at Stripe learned about customers because it's important for everything they do.

2. Handling Complexity: Stripe made their products more powerful behind the scenes (like with fancy code and new features for different countries), but they kept things SUPER simple for the people who use them. Imagine a recipe that's easy to follow even though it has complicated ingredients.

3. Adding Strength: Stripe made their products super reliable, even on super busy days. They handled a HUGE amount of work while barely ever having any problems.

4. Moving Fast: Being deep doesn't mean being slow. Stripe made updates to their products very quickly, which is way faster than most companies.

So how do leaders help their teams go deep? Here's what Stripe did:

• Clear Goal: They have a clear mission to make the internet economy bigger. That's their vision!

• Smart Strategy: They plan to build the behind-the-scenes tools that make the internet economy run smoothly. That's their strategy!

• Helpful Principles: Stripe lives by three key ideas: keep customers happy, make everything top-notch, and run the company smoothly. These rules give teams a roadmap to follow so they can go deep for a long time.

Stripe figured out how to do a few things well instead of trying to do everything at once.

They learned a lot about their customers, made their products powerful but easy to use, built them strong, and updated them quickly. They also set clear goals and rules to help everyone stay on track.

Key Lessons

Let's take Stripe's magic recipe and turn it into useful tips for your own business, no matter what you do:

Know Your Crew

Don't try to be everything to everyone. Find a specific group and talk directly to them. Stripe didn't talk to generic "businesses"; they spoke to developers.

Build Trust

Use language your audience understands and focus on their needs. This builds trust and makes them like you. Stripe didn't just sell a product; they built a community.

Solve Real Problems

Don't just offer something; solve a real pain point for your customers. This makes you essential, not an option. Stripe didn't process payments; they offered solutions to make payments easier and safer.

Move Fast

In today's world, speed is key. Stripe constantly innovated and adapted to stay ahead of the curve. Don't be afraid to experiment and try new things!

Scale Strategically

As your business grows, it's important to find ways to reach more people without leaving your original supporters behind.

They expanded to new markets and user groups, but developers always remained a core part of their focus. This ensures they keep the community that helped them launch happy and engaged.

Conclusion

There you have it! Stripe is proof that a business can become huge by focusing on a specific group of people, building trust with them, and solving their real-world problems.

Want to see another example of a company that grew like crazy? Check out my case study on how HubSpot went from a small startup to a $35 billion company!