INSEAD Stripe Case competition Entry

1. VISA Product Games
INSEAD, Stripe
Submitted by:Vaibhav Gupta,Vishnu P Subramoniam, PeiwenWu
CEIBS MBA 2019

2. Stripe Connect Provides Easy Integration And Greater Flexibility
For Online Businesses
What is Stripe
Connect?
What is its advantage?
Who are its
competitors?
 Payment Gateway
which accepts
payments through
various channels
 Handles payment
transactions as well as
security
 Can be easily integrated
to any online business
platforms
 Provides additional
systems such as CRM,
Analytics etc. to
analyze data
 PayPal
 Braintree Payments
Stripe believes that easy to integrate systems will favor online payments which will increase
the number of customers using online payments as well as increase the cash flow

3. Stripe Connect “Express” Accounts Are Meant For Smaller
Business That Desire Quicker Onboarding
Stripe
Connect
Express
Faster
Onboarding
Automated
Signup
Process
In-Built
Analytics
Engine
Easy
Integration
Low Cost
 Onboard users quickly and at scale, such as an
on-demand marketplace
 Onboard users in less than 2mins while
performing all the required verifications and
compliance
 Stripe Express uses automation for
fast track sign ups
 Low manual intervention
 Offers pre built dashboards to users
 Information such as no. of transactions,
cash volume and cash dues will be
provided
 Caters to less tech savvy customers as
all the major coding will be done by
Stripe
 Suited for customers who do
not want to pay a huge amount
to Stripe for a highly
customized platform
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

4. Why Did Stripe Launch The Connect Express Account?
1 2By having a faster way to onboard
users, the online service platform
will be able to register more users
at a faster rate
By having an easy to integrate and
cheaper version of Connect, it will
attract more smaller online service
providers to use Stripe as their
payments gateway
Faster Onboarding Focus on Smaller Firms
We believe that the launch of the express service by Stripe is aimed towards expanding its
customer base by attracting more online businesses resulting in more users using the platform.
This will increase Stripe’s share of the total cash flow in the online payment industry, boosting it’s
market share and market power
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

5. Metrics To Evaluate Success Of Stripe Express
% Increase in total number of users*
% Increase in total number of customers**
Increase of rate in customers onboarding for online
services using Connect Express vs. Connect Standard
Share of business coming from small vs large online
market places
Growth in #Transactions vs. Growth in avg. transaction
Value
1
2
3
4
5
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)
Express

6. Importance Of Stripe Express’s Evaluation Metrics
# Metric Explanation
1 % Increase in total number of users*
Higher the number of online service providers Stripe has acquired because
of Express the more successful it is.
2 % Increase in total number of customers**
More the number of Stripe customer accounts that have been created the
more successful Connect Express is.
3
Increased rate of customers onboarding for
online services using Connect Express vs.
Connect Standard
Connect Express should enable online market places to onboard customers
at a much faster rate than Standard and other platforms. So an increase in
the rate of customer onboarding reflects the success of Connect Express.
4
Share of business coming from small vs large
online market places
In the total revenue of Stripe, if more share of business is from smaller
online services compared to larger online businesses, it means that more
small online platforms are registering in Stripe due to Stripe Express.
5
Growth in #Transactions vs. Growth in Avg.
transaction Value
With Connect Express, the total number of transactions as well as the total
revenue should increase due to the fixed component (30 cents fixed
transaction fee) associated with the Stripe payment structure.
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

7. Additional Features For Stripe Connect
Help users manage their
accumulated capital in Stripe
through easy and promising
investments
Rate users on their transactions;
enhancing their credibility to future
customers, creditors and other online
market places
Wealth Management
Stripe Score

8. Offerings Of The Wealth Management Add On Service
Help users manage their accumulated
capital through easy and promising
investments
Wealth Management
PersonalAsset Management feature will help users manage their
cash in Stripe in a prudent manner
This feature will enable users to invest their Stripe money in assets
which can provide them attractive returns
Stripe will tie up with third party asset management companies for
a fixed/variable charge which can then help users to invest their
money in short term investments
Another advantage of this feature is that users will decrease the
number of withdrawals and the amount of cash balance on the
Stripe platform will increase
This additional feature will increase stickiness of users to Stripe
which will make more and more online market places adopt Stripe
This feature is targeted to all the users using Stripe. We believe that this will be of value to all customers
ranging from drivers in Lyft to sellers in various online selling platforms. Different customers can invest
different amounts in different short term investments as per their requirement
Customer Base for Wealth Management
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

9. Advantages & Benefits Of Wealth Management Add On Service
 This feature will help users decide whether to withdraw the money accumulated in Stripe or to invest it
in short term investments
 This would be useful for the users as most of them are low/middle income people who would generally
withdraw the cash and credit it in their bank accounts as they do not have the awareness of wealth
management
 This feature will help the users proactively use the cash to generate income rather than transfer it to
their bank accounts which would be a dead investment
 This feature will help increase the adoption of Stripe thus increasing its customer base
 This feature will increase the total amount of cash balance in Stripe at any point of time providing an edge
to Stripe unlike its competitors
 Stripe can have an extra source of income by the commission charged to the asset management service
providers
Advantage for Stripe
Benefit for Users
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

10. Mock up of Wealth Management Add on
Yield Overview
Yield
In Out
Credit Repayment
(Auto Pay Dues)
Auto Transfer
limit cutoff
2.5%
Users can use the In button to transfer as much cash as he/she
wants from the Stripe account to the investment
The Out button will enable the user to withdraw the cash
back to his/her Stripe account in a quick and seamless
manner
Yield will show the yield of short term investment for
last 7 days annualized
The user can connect his/her Stripe account with the asset
management feature and can enable an auto transfer if the
Stripe balance amount goes beyond a limit. For eg; if the
user’s daily Stripe balance goes above 100$ the excess amount
will get credited into chosen investments
Enabled
$ 400
The user can enable automatic settlement of dues from
his/her stripe account (eg. Credit card payment)

11. Offerings Of The Strip Score Add On Service
Stripe could provide a credit score/rating to all its users.This score can be used by users to prove their credibility while they
are trying to launch their products in a new online market place
The Stripe Score will act as an online version of credit rating which
will increase the credibility of an online seller
The score can be used by users as a guarantee to get mini online
loans/ credits
The user(seller) with a high Stripe score can even bargain with an
Online market place to provide better rates as the user (seller) has
proved his/her trustworthiness by having a high Stripe Score
Trust is one of the major deterrents in online selling and in the
future a high Stripe score can also be used as a guarantee by Sellers
to inform their customers regarding their HighTrustworthiness
Rate users on their transactions;
enhancing their credibility to future
customers, creditors and other online
market places
Stripe Score
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

12. Components Of The Stripe Score
Stripe Score
Number of
Transactions
Volume of
Transactions
Total Cash
Value of
Transactions
Number of
Returns
CashValue of
Returns
#1
#2
#3#4
#5
 1,2 and 3 will help online market
places assess whether this seller is a
good addition for them or not
 Measures 4 and 5 will help customers
understand whether these sellers are
genuine sellers and whether they sell
good quality products or not
 A weighted combination of these 5
parameters can be used to give each
user (seller) a Stripe score from 0-5; 0
being the lowest and 5 being the
highest
**Customers: Different online platforms which can use Stripe as a payment gateway (eg. Ebay, Lyft )
*Users / Sellers: Sellers/Drivers or anyone who uses the online platforms (as Ebay, Lyft) for providing services (eg. Sellers on Ebay, Drivers on Lyft)

13. If Stripe Connect Still Fails, There Could Be A Need To Revamp
Brand Positioning
 If Connect Express fails even after having such great features, it tell us that online market
places want to go for a more assuring/credible payment gateway such as PayPal even if it is
difficult to integrate and takes time to onboard a seller
 This makes us understand that Stripe should increase its brand value to increase its credibility.
For this Stripe will have to have a strong marketing campaign to reach out to more customers
and allocate marketing dollars for the same
 Stripe should also revisit its customers and try to understand if the features provided by Stripe
Express are useful enough to give Stripe an edge, which could make users prefer Express over
its competitors such as PayPal
 We strongly believe that the add on features such as wealth management and stripe score can
strongly increase the user engagement resulting in higher brand awareness

14. Team Details
Name Email ID Mobile Number
Vaibhav Gupta gvaibhav.m19@ceibs.edu +86-15502117945