Stripe announced a milestone in its 2023 annual letter: surpassing $1 trillion in total payment volume.
This marked a 25% increase compared to the previous year, showcasing the platform's remarkable trajectory in facilitating global transactions.
"With $1 trillion in payment volume, the output of businesses operating on Stripe now represents approximately 1% of the world's GDP [gross domestic product]," the statement said, highlighting the platform's integral role in powering the global economy.
Stripe's success has been propelled by its appeal to a diverse clientele, ranging from early-stage startups to established enterprises.
Used across 2.8 million websites, some of its customers are industry giants like Atlassian Corp., Zapier, Uber Technologies Inc. (NYSE: UBER), Instacart (NYSE: CART) and Shopify Inc. (NYSE: SHOP), affirming its status as the go-to payment solution for businesses of all sizes.
"Our enterprise segment continues to grow rapidly, with more than 100 companies now processing more than $1 billion per year with Stripe," according to the letter.
Amid Stripe's growth, the broader e-commerce industry has witnessed a large expansion.
In the United States, e-commerce experienced a 7.6% surge in 2023, with total sales increasing from $1 trillion in 2022 to $1.12 trillion.
E-commerce sales accounted for 15.4% of total retail sales in 2023, showing a significant portion of spending driven by online platforms driving consumer spending.
As e-commerce activity has increased, so has consumer debt.
The convenience of online shopping has made it easier for consumers to make impulse purchases, contributing to a $212 billion increase in household consumer debt in the fourth quarter of 2023, reaching a record high of $17.5 trillion in 2023.
A significant portion of this consumer debt stems from credit card balances, which increased by $50 billion to $1.13 trillion in the same quarter.
Total credit card debt in the U.S. surpassed $1 trillion for the first time in the second quarter of 2023, marking a 14.1% increase for the one-year period ending Dec. 21, 2023.
Stripe witnessed its most prolific four-day consumer spending spree during Black Friday/Cyber Monday, with over 300 million transactions amounting to $18.6 billion.