Is Twitter Ready Tango With Payments Startup Stripe?
Recent reports elucidate that Twitter (NYSE:TWTR) is finally coming around to the idea of taking advantage of the commerce side of its business. Though the microblogging platform has dabbled in e-commerce in the past, it finally looks like Twitter is ready to get serious, as Re/Code reported Thursday that the company is nearing a deal with payments startup Stripe to help it accept credit card payments from its users. The deal is still reportedly in its negotiation stages, but once it is complete, Twitter will be able to offer brands, retailers, and manufacturers the opportunity to sell things directly on its site.
It first became clear that Twitter was interested in developing its e-commerce business when it appointed Ticketmaster CEO Nathan Hubbard its new head of commerce in August. E-commerce is expected to be a significant source of revenue for the newly public company, and many investors are interested in Twitter taking advantage of the market sooner rather than later.
That’s where Stripe comes in. Re/Code reports that the startup lets companies start accepting payments on websites and mobile app within a day via its APIs, which has made it popular among developers. Stripe is currently backed with $40 million in investments from Sequoia Capital, General Catalyst, Redpoint Ventures, SV Angel, and others, and it currently serves companies that range from riding-sharing service Lyft, to e-commerce store platform Shopify, to grocery-delivery startup Instacart.