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Finextra
a day ago
- Business
- Finextra
Deep Dive: Stripe vs. Adyen – Comparing Product Stacks and Pricing: By Sam Boboev
Two fintech heavyweights are vying for dominance in global payments: Stripe and Adyen. Both power a substantial share of online commerce, yet they've taken different paths to the top. Stripe, the Silicon Valley darling, built its name with developers and startups; Adyen, the Dutch powerhouse, quietly became the backbone for many large global retailers. Product managers and fintech founders on both sides of the Atlantic (especially in the US and EU) often face a strategic choice between these platforms. This deep dive examines how Stripe and Adyen stack up – from their product offerings to pricing models – and why it matters. Spoiler: Both companies have overlapping product categories (payments, fraud prevention, in-person solutions, and more), but their strengths and weaknesses can make each a better fit for different customer profiles. Let's dig in. The Payments Giants at a Glance It helps to frame the comparison with scale and performance. In 2024, Stripe processed about $1.4 trillion in total payment volume (TPV), growing 38% year-over-year, while Adyen was close behind with €1.29 trillion (+33% YoY). These figures underscore that both companies handle enormous transaction flows (roughly on par with ~1–1.5% of global GDP each). Adyen has long been profitable – it sustained an impressive ~50% EBITDA margin in 2024 – whereas Stripe historically reinvested for growth but finally achieved full-year profitability in 2024. In other words, Adyen is the rare fintech operating at bank-like profit levels, while Stripe proved its business model can scale financially. Both are now plowing resources into R&D and expansion, setting the stage for an intense rivalry. Stripe launched in 2010, targeting developers and small online businesses with easy-to-use APIs. Its strategy was bottom-up: win the hearts of startups and SMBs, then gradually move upmarket. Adyen, founded in 2006, took almost the opposite approach – a top-down focus on large enterprises and global retailers. Adyen built a single unified platform for 'unified commerce' (online, in-app, and in-store payments all in one), directly connecting to card networks and local payment methods. This made Adyen the go-to for many big multichannel merchants (think Uber, Spotify, Microsoft, McDonald's, H&M and the like), while Stripe became synonymous with the startup economy and SaaS world. Today, however, their offerings overlap significantly. Stripe now serves 50% of the Fortune 100 companies in some capacity, and Adyen is expanding its reach to mid-sized clients and platforms. Both are truly global – Stripe is used in 195+ countries with support for 135+ currencies, and Adyen similarly supports transactions worldwide (150+ currencies and dozens of local methods). A quick external perspective sums it up well: 'Adyen is better for midsize or large companies with multiple sales channels, whereas Stripe is good for small, online businesses.' In practice, Stripe's flat-rate pricing and plug-and-play simplicity make it popular among SMBs and tech startups. Adyen's custom approach and interchange-plus pricing appeal to high-volume, omnichannel businesses that can integrate a more complex solution. But these lines are blurring. Stripe has been aggressively courting larger enterprises (even Amazon inked a deal in 2023 to have Stripe process a significant portion of its payments across the US, Europe, and Canada). Meanwhile, Adyen is indirectly serving many SMBs via platform partnerships (for example, when Etsy or eBay use Adyen as their payments engine, thousands of small sellers are on Adyen's rails). The competitive arena is set: both companies offer a broad payments platform, but how do their product stacks and pricing compare in detail? Core Payments Infrastructure At their heart, both Stripe and Adyen are payments processors – they enable businesses to accept a wide range of payment methods and get paid online (and offline). Let's compare their core payments capabilities: Stripe and Adyen each support an extensive array of payment methods: global credit/debit cards (Visa, Mastercard, Amex, etc.), digital wallets (Apple Pay, Google Pay, etc.), bank transfers, and region-specific options (from **SEPA Direct Debit in Europe to ACH in the US, Alipay and WeChat Pay in Asia, Klarna/Affirm for BNPL, and many more). Stripe advertises access to 100+ payment methods out-of-the-box with a single integration. Adyen similarly prides itself on being a one-stop solution to 'offer your customers all their preferred payment methods with a single integration'. For example, a merchant using either platform can easily offer local favorites like iDEAL in the Netherlands or Boleto in Brazil alongside global cards. One difference is how these methods are integrated. Adyen built direct connections to many local payment schemes and card networks through its own licenses. This 'single platform' approach can improve authorization rates and reduce hops in the transaction process. Indeed, Adyen highlights its direct acquiring connections to Visa/Mastercard and even domestic networks, claiming it can optimize approval rates via intelligent routing (their RevenueAccelerate tools). Stripe, on the other hand, initially partnered with banks for acquiring in various regions, but over time it also obtained regulatory licenses and built out global infrastructure (Stripe has regulatory licenses in multiple jurisdictions and data centers worldwide, ensuring transactions are processed locally where possible for speed and better success rates). Both companies now can offer very high uptime (Stripe boasts 99.999% historical uptime, and Adyen is known for reliability as well) and the ability to settle funds in a currency of the merchant's choosing. Adyen explicitly lets merchants 'choose when and in which currency' to receive payouts, a flexibility important for international businesses. Stripe is almost universally lauded for its developer-friendly APIs and documentation. It provides client libraries in every popular programming language and famously simple code snippets. For a small business or product team, Stripe's developer tools can shorten integration time dramatically. (As an example, Stripe's drop-in checkout or pre-built UI components – Stripe Elements and Checkout – let you start accepting cards with minimal coding.) Adyen's platform is also robust, but the common refrain is that Adyen is not as 'plug-and-play' for small merchants. Adyen often requires a bit more initial setup and understanding of payment flows. That said, Adyen offers comprehensive APIs and SDKs too, along with client-side components (its Drop-in UI and Components for web/mobile) to handle payment method selection and encryption. The gap in ease has narrowed over time, but Stripe's polish in developer experience and documentation remains a strong differentiator. For a startup with a lean engineering team, Stripe's 'it just works' approach can be very attractive – everything from the initial integration to handling webhooks for events is well-supported. Adyen tends to shine for merchants that need fine-grained control and are willing to invest in a more bespoke integration. Transaction Performance: Both Stripe and Adyen invest heavily in optimizing payment success rates. Adyen's advantage of direct network connections means it can sometimes get slightly better authorization rates, especially in regions where local processing matters (for instance, processing European cards with a European acquiring license to avoid cross-border inefficiencies). Stripe has countered by developing its own smart routing and 'adaptive acceptance' algorithms, and by working with card issuers. Stripe even formed an Enhanced Issuer Network program to share data with card issuers, reportedly reducing fraud and boosting authorizations by 1–2% on eligible volume. In practice, both processors are top-tier in transaction quality; large merchants often run A/B tests between providers and find both Stripe and Adyen to be high performers, with differences depending on specific geographies or banks. It's not unusual for an enterprise to use multiple PSPs in active-active mode and route traffic between Stripe, Adyen, and others to optimize costs and uptime. Both companies understand this and continually roll out improvements (for example, Stripe has machine learning to retry failed payments at optimal times and auto-update saved card details, while Adyen recently introduced an AI-powered tool called Adyen Uplift to improve payment conversion by an average 6%). On core payment processing capabilities, both Stripe and Adyen offer a full-spectrum, global solution. Stripe wins praise for ease and developer tooling; Adyen wins praise for technical robustness and global unified infrastructure. For most standard online payments use cases (accepting card payments on a website or app), either will get the job done with high standards. The differences emerge more clearly when we expand into other aspects: in-person payments, platform payments, and value-added services. Source: Stripe vs. Adyen 2024 performance and strategy highlights NerdWallet on ideal customer profiles for Adyen vs Stripe Stripe Newsroom: Amazon expanding use of Stripe (enterprise win) Stripe Enterprise documentation (custom pricing options) Adyen official pricing page (interchange++ transparency) Codelevate 2025 PSP comparison (product features & pricing details) Fintech Wrap Up deep dive (TPV and product developments in 2024) Adyen website ('One platform' omnichannel messaging) Codelevate on strengths/drawbacks of each platform FXCintel analysis on Adyen's 2023 results (North America focus) Disclaimer: Fintech Wrap Up aggregates publicly available information for informational purposes only. Portions of the content may be reproduced verbatim from the original source, and full credit is provided with a "Source: [Name]" attribution. All copyrights and trademarks remain the property of their respective owners. Fintech Wrap Up does not guarantee the accuracy, completeness, or reliability of the aggregated content; these are the responsibility of the original source providers. Links to the original sources may not always be included. For questions or concerns, please contact us at
Japan Times
21-05-2025
- Business
- Japan Times
Global retailers' tariff strategy risks spreading pain beyond U.S. consumer
Global retailers including sandal maker Birkenstock and jeweler Pandora are looking at spreading the cost of U.S. tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimize higher tariff costs in the U.S. But it is putting central banks on watch as the strategy could fuel inflation in other markets such as the European Union and Britain, where consumer prices have finally started to stabilize. Birkenstock's chief financial officer said last week that a "low-single-digit" price increase globally would be enough to offset the U.S. tariff impact. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the U.S., its biggest market. "Companies are really thinking about distributing the tariff," said Markus Goller, a partner at consultancy Simon Kucher in Bonn, Germany. "A manufacturer from outside of the U.S. might say, OK, I cannot increase my prices to the U.S. market that much, so I will do a little increase in the U.S., and a little increase in Europe, and in other markets." U.S. President Donald Trump has imposed a blanket tariff of 10% on all global imports and is threatening higher so-called "reciprocal" tariffs on its trading partners. A Birkenstock shoe store in Oldenburg, Germany, on May 2. Birkenstock's chief financial officer said last week that a "low-single-digit" price increase globally would be enough to offset the U.S. tariff impact. | Bloomberg When U.S. behemoth Walmart said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to "eat the tariffs." Announcing price increases in non-U.S. markets could be a way for retailers to avoid a similar backlash from Trump. "Obviously if your products coming into the U.S. are now subject to tariffs, then math says that you have to raise your prices in the U.S.," said Jean-Pierre Dube, professor of marketing at the University of Chicago Booth School of Business. "But you don't want to be accused by the White House of raising prices purely because of U.S. tariffs, so if you can demonstrate that your prices are going up everywhere then ... it's kind of a shield." Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidize other products or countries where price hikes would hurt sales more, said Jason Miller, a professor of supply chain management at Michigan State University. "Maybe a U.S.-only firm has to raise (U.S.) prices by 12%. But you, as a global firm, raise prices by 8% because you can play with pricing in other markets," he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the U.S. in a bid to minimize the economic fallout of tariffs. Bank of England Governor Andrew Bailey earlier this month raised the issue of "global companies that don't make that distinction (on tariff rates) and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences." "I think we do have to watch that carefully," he said. Workers in a Pandora jewelry factory in Lamphun, Thailand, in 2019 | Pandora / via The New York Times In the eurozone, inflation was finally gliding toward the European Central Bank's (ECB) 2% target. European companies surveyed by the ECB in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145%. However, the U.S. tariffs on China — lowered last week to 30% — have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as U.S. retailers cancelled orders from factories there, and shipping costs also fell. A Walmart store in Teterboro, New Jersey, on April 10. When Walmart said it would have to raise prices in response to tariffs, U.S. President Donald Trump ordered the retailer via social media to "eat the tariffs." | Karsten Moran / The New York Times "What we don't know is if there's going to be inflation in the U.S. and if that inflation comes to Europe or not," Pessina said. Some big retailers have in any case ruled out raising prices outside the U.S. "There is no reason to raise prices outside the U.S. because of the tariffs," Adidas CEO Bjorn Gulden told investors after reporting results late last month. "The discussion we're having on tariffs is only for the U.S." ECB executive board member Isabel Schnabel has said the eurozone's inflation rate may initially dip below the central bank's 2% target, but that tariffs might prove inflationary further down the road. "In order to compensate for the hit to input costs, firms also tend to raise the prices of goods not directly affected by tariffs," Schnabel said in a speech earlier this month. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-22 during the pandemic. "It will be very difficult for a firm's customers to know what portion of the product's total costs are subject to the tariff, or even the tariff rate that applies. This information asymmetry creates a ripe environment for exploitation. Just as it did during COVID," said Hal Singer, professor of economics at the University of Utah. U.S. consumers' 12-month inflation expectations jumped in April to 6.7%, the highest reading since 1981. And in the eurozone, too, consumers are expecting inflation to rise. "If people are expecting inflation, well then it gives firms a little bit more room to raise prices," said Miller.
Reuters
20-05-2025
- Business
- Reuters
Global retailers' tariff strategy risks spreading pain beyond US consumer
LONDON/FRANKFURT, May 20 (Reuters) - Global retailers including sandal maker Birkenstock (BIRK.N), opens new tab and jeweller Pandora ( opens new tab are looking at spreading the cost of U.S. tariffs by raising prices across markets to avoid big hikes in the United States that could hurt sales. A global presence gives large retailers an advantage to minimise higher tariff costs in the U.S. But it is putting central banks on watch as the strategy could fuel inflation in other markets like the European Union and Britain, where consumer prices have finally started to stabilise. Birkenstock's chief financial officer said last week that a "low-single-digit" price increase globally would be enough to offset the U.S. tariff impact. Pandora CEO Alexander Lacik said the Danish company is debating whether to raise prices globally or more in the U.S., its biggest market. "Companies are really thinking about distributing the tariff," said Markus Goller, partner at consultancy Simon Kucher in Bonn, Germany. "A manufacturer from outside of the U.S. might say, OK, I cannot increase my prices to the U.S. market that much, so I will do a little increase in the U.S., and a little increase in Europe, and in other markets." U.S. President Donald Trump has imposed a blanket tariff of 10% on all global imports and is threatening higher so-called "reciprocal" tariffs on its trading partners. When U.S. behemoth Walmart (WMT.N), opens new tab said it would have to raise prices in response to tariffs, Trump ordered the world's biggest retailer via social media to 'eat the tariffs'. Announcing price increases in non-U.S. markets could be a way for retailers to avoid a similar backlash from Trump. "Obviously if your products coming into the U.S. are now subject to tariffs, then math says that you have to raise your prices in the U.S.," said Jean-Pierre Dubé, professor of marketing at the University of Chicago Booth School of Business. "But you don't want to be accused by the White House of raising prices purely because of U.S. tariffs, so if you can demonstrate that your prices are going up everywhere then... it's kind of a shield." Retailers could raise prices on certain products or in certain markets where consumers are less price-sensitive, and use that to subsidise other products or countries where price hikes would hurt sales more, said Jason Miller, professor of supply chain management at Michigan State University. "Maybe a U.S.-only firm has to raise (U.S.) prices by 12%. But you, as a global firm, raise prices by 8% because you can play with pricing in other markets," he said. If many multinational retailers do spread the tariff pain, higher inflation could spread even to countries which, like Britain, have already struck trade agreements with the U.S. in a bid to minimise the economic fallout of tariffs. Bank of England Governor Andrew Bailey earlier this month raised the issue of "global companies that don't make that distinction [on tariff rates] and just say, we're going to impose a pricing solution which goes right across the world irrespective of those differences." "I think we do have to watch that carefully," he said. In the euro zone, inflation was finally gliding towards the European Central Bank's 2% target. European companies surveyed by the European Central Bank (ECB) in late March said price growth in the retail sector was subdued. But that was before Trump unveiled his tariff policy on April 2, and later hiked tariffs on Chinese goods to 145%. However, the U.S. tariffs on China - lowered last week to 30% - have allowed some European retailers to source goods more cheaply than before. Martino Pessina, CEO of Takko Fashion, which sells clothes in 17 European countries, said suppliers in China had offered lower prices as U.S. retailers cancelled orders from factories there, and shipping costs also fell. "What we don't know is if there's going to be inflation in the U.S. and if that inflation comes to Europe or not," Pessina said. Some big retailers have in any case ruled out raising prices outside the U.S.. "There is no reason to raise prices outside the U.S. because of the tariffs," Adidas ( opens new tab CEO Bjorn Gulden told investors after reporting results late last month. "The discussion we're having on tariffs is only for the U.S.." ECB executive board member Isabel Schnabel has said the euro zone's inflation rate may initially dip below the central bank's 2% target, but that tariffs might prove inflationary further down the road. "In order to compensate for the hit to input costs, firms also tend to raise the prices of goods not directly affected by tariffs," Schnabel said in a speech earlier this month. While every company has its own pricing strategy, economists warn some could take advantage of tariffs to raise prices by more than rising costs, boosting their profits similarly to the inflation surge of 2021-2022 during the pandemic. "It will be very difficult for a firm's customers to know what portion of the product's total costs are subject to the tariff, or even the tariff rate that applies. This information asymmetry creates a ripe environment for exploitation. Just as it did during COVID," said Hal Singer, professor of economics at the University of Utah. U.S. consumers' 12-month inflation expectations jumped in April to 6.7%, the highest reading since 1981. And in the euro zone, too, consumers are expecting inflation to rise. "If people are expecting inflation, well then it gives firms a little bit more room to raise prices," said Miller.
