Thursday, January 8, 2015

Kickstarter Drops Amazon Payments For Stripe

by Sarah Perez - Techcrunch

Crowdfunding platform Kickstarter announced 
today that it’s partnering with payments service
Stripe, which will now collect and process all
payments for projects hosted on Kickstarter’s site.
Since its founding, Kickstarter used Amazon
Payments for this, but claims it had to make
the switch because late last year, Amazon
decided to discontinue the payments product
that Kickstarter was previously using. That
decision led Kickstarter to analyze the
possibilities, and ultimately it chose the
well-liked and growing company Stripe, 
following its recent $70 million funding round.
Stripe processes payments for some of the
biggest tech companies, including Facebook
and Twitter, as well as others like Lyft,
Shopify, TaskRabbit, Instacart, Rackspace,
Postmates, Handybook, Salesforce, OpenTable,
Bigcommerce, Reddit, Squarespace, WuFoo,
and many others. It has become popular for
 its ease of use and setup, simple and
transparent pricing, and because it offers
companies complete control over the
 checkout experience.
“Stripe will help Kickstarter’s users reach
a broader audience and see higher
conversion rates from backers anywhere
 in the world – especially those coming
from mobile devices,” the company says.
For project creators, Kickstarter says this change means
they’ll no longer have to set up an Amazon Payments
business account anymore, but instead will enter
their bank account details on the Account tab of
their Kickstarter project’s draft. The change will
also speed up the time it takes to go live on
Kickstarter – before, the Amazon Payments
setup process took a few days. With Stripe,
the process takes just a couple of minutes.
For backers of a project, checkout will be
easier as they’ll no longer be redirected or
have to log into a separate service. The
 checkout flow will also now take place
entirely on itself.
Kickstarter says its fees are not increasing
as a result of the move – it will apply a
5% fee to the total amount of funds
raised and Stripe will apply credit card
processing fees (about 3%-5%).
The move to Stripe will be completed
by next week.
Kickstarter has processed $1.2 billion
in pledges via Amazon Payments, which
 it was using even a year before launching
to the public. The payments service was
selected at the time for being of the only
ones that allowed Kickstarter backers to
pledge money, but only be charged
when projects reached their funding goals.
noting that 3.3 million backers in 2014 pledged $529
million, resulting in 22,000 funded projects.

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