Apple Inc. (NASDAQ:AAPL) and Twitter Inc (NYSE:TWTR) look to partner up with a company headed by a 24-year old entrepreneur. John Collison’s idea of easing the payment systems so that purchasing with your phone becomes more feasible caught the interest of already mature tech companies. Stripe is the name of his creation and it will be powering the new Apple Pay, according to CNN.
Stripe is a backend solution to arranging a payment with the merchants for the in-App or web acquisitions of products. It will be the backbone of all the transactions performed by Apple Inc. (NASDAQ:AAPL), which will still have to collect data from customers and store it in the more appropriate and secure way.
“I think success for us means making it easy to move a dollar around the world as it is to move a pack of information,” said John Collison.
Twitter Inc (NYSE:TWTR) is also looking to take part into the modernization of payments, however from a different perspective. The company will add a “Buy” button under the tweets containing advertising information about a specific product. Stripe is expected to function perfectly with the web processing and it will still be the backend part of the purchases. eBay Inc (NASDAQ:EBAY)’s Paypal is directly threatened by the new tendencies that emerge.
“If you look at, let’s say a company like Paypal, they emerged in 1998- 1999, not just before smartphones but before the internet had really taken off. And so, before stripe it was very difficult for an App to start doing this. They generally have to work with order payment companies, who really didn’t get the internet,” mentioned John Collison.
Apple Inc. (NASDAQ:AAPL) might actually be the promoter of change in the payments system with the help of this new technology developed by John Collison and his older brother Patrick, who is 26. It will be interesting to see how things evolve further as other companies might also be tempted to follow either Apple Pay or Twitter Inc (NYSE:TWTR)’s example.
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