“It may feel as if everything has gone online, but 90% of purchases still happen in person” – Stripe. That is from Stripe, one of the world’s largest payment companies, valued at least $70 billion.
Add this – “According to research done by The Fletcher School and Mastercard, of the $301 billion of funds flow from consumers to businesses in Nigeria, 98 percent is still based on cash” – and you get the clear picture that money is still in the meatspace and not yet in the cyberspace. Yet, while we are transiting into the digital space, you cannot ignore where the money is at the moment.
Indeed, as you march to the online world, never forget that we all live in the physical world. Have an offline strategy!
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Comment: Subjective data. Apart from trust and security concerns, few people use stripe and PayPal even in USA. Greater number of payments go through direct bank transfers. Aliexpress, Walmart, Amazon, Flipkart and EBay sales report would be objective and reliable.
My Response: What is subjective in their data? Just curious why you began with that generalization. On “Aliexpress, Walmart, Amazon, Flipkart and EBay sales report would be objective and reliable,” what do you mean by that line on the topic of paying in person and online? In eBay and Amazon, there is no option to pay in person while in Walmart, most have to go to the stores to pay. How do those companies provide objectivity and reliability on Stripe data?
Further comment: prof. Amazon has different payment options for different locations, in many places they do allow pay in person. Besides, Amazon and other big market places have their own payment wallets linked directly to local banks why would they use stripe? EBay works more as an auction marketplace than conventional ecommerce, so the payment method is a kind of escrow for trust and fast fulfilment.
Stripe and Paypal are just few among many payment processing companies for online merchants and sellers.
Due to cash freeze and other stringent measures very few people use them. People use other payment options like payoneer, payza etc.. So stripe can’t authoritatively make such presumptive claim based on an experience in a particular geolocation. What could be more subjective than that.
It would be more objective when customers data from various ecommerce marketplaces, banks and other cash processing companies are taken into cognizance.
My Response: Amazon uses Stripe to process payment. Ebay uses Paypal. Walmart uses Stripe. These payments have POS which means Stripe collects offline payments. In that email, Stripe is asking me to accept its POS and NFC system so that we can collect in-person payment in my company in the US.
I do not understand your comparison. That you pay in Amazon or eBay with a card does not mean they process payments. Stripe processed over $640 billion in 2021. Some of those for Walmart and Amazon. Paypal does more than a trillion dollars.
You cannot say that a company which processes $640 billion in the largest economy in the world is speculating.