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Twitter’s rumoured deal with Stripe would show social network is “serious” about payments

BusinessNews
by Jamie Hinks
, 17 Jan 2014News
Twitter’s rumoured deal with Stripe would show social network is “serious” about payments

Twitter is nearing a deal to allow users to complete purchases directly through the service using a tie-up with payments company Stripe that will let it accept credit card payments from users.

Related: Stripe launches multi currency online payment service for UK businesses

The transaction is in its final stages but not yet complete, according to a person familiar with the matter quoted by Recode, and it’s so far not clear as to how the service will work or how it will be implemented.

If the deal is completed the service will let brands, retailers and manufacturers sell items directly through Twitter and show that Twitter is “serious” about making it more simple for payments to be accept using the service.

This isn’t the first time that Twitter has entered the payments arena after a deal in February with American Express had allowed cardholders to pay for certain products if the credit card was synced with Twitter. The site also agreed a similar deal with Starbucks that saw Starbucks accounts synced with Twitter to allow customers to buy friends Starbucks gift cards through the service.

Stripe, meanwhile, was set up by brothers Patrick and John Collison back in 2010 in the US with the goal of making it simpler for card payments to be accepted online. Over its short time it has managed to raise around $40 million [£24 million] in funding from a raft of reputable Silicon Valley investors including PayPal founder Elon Musk, Peter Thiel, Andreessen Horowi, SV Angel, Sequoia Capital and General Catalyst.

The service can accept all major card types and made its first move into Europe in August 2013 when it started to allow UK businesses to accept card payments on its website and through mobile apps.

In the UK the likes of Virgin Pure and Thread.com have already signed up to the service as well as partnerships agreed with Kashflow and FreeAgent.

Related: £10 to message Tom Daley? Facebook trials new payment system

Both Twitter spokesperson Will Stickney and his counterparty at Stripe Kelly Sims declined to comment on the story and it remains to be seen whether the partnership comes to pass.

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