In an effort to make its products more easily available for merchants, the top payments processing company, Stripe, has announced that it will be removing its payments service from its larger financial services technology stack.

The fintech behemoth, which was most recently valued at US$65 billion and handled a significant US$1 trillion in payments in the previous year, has altered its approach in response to heightened competition from companies such as PayPal and Adyen.

Stripe: Disentangling its tech stack from payments

Companies won't need to use Stripe's payment processing service in order to use the company's other products now that it has been separated from its tech stack.

Merchants may still enjoy Stripe's broader range of services while having the flexibility to employ other payment processors if they so want.

Stripe is departing from its prior strategy in an effort to draw in new, large clients.

"As we've gotten into these larger and larger customers, they have more constraints, you're dealing with different parts of the organization, and so this makes it easy to adopt the best parts of Stripe," explains co-founder of Stripe John Collison.

Continuous innovation at Stripe

The payments processor has also added additional AI tools and embedded financial features to its line of products in addition to this change.

It coincides with American Express's entry into its expanded issuer network and new alliances with top US card issuers, such as Discover Financial Services and Capital One Financial.

Chief Product Officer Will Gaybrick stated earlier this week at Stripe's annual conference, Sessions, "We're extending our modularity to the very core of Stripe: payments processing."

"Every product offered by Stripe will seamlessly integrate with third-party processors."

The goal of Stripe is to increase the GDP of the internet, and these numerous announcements are in line with the evolving demands of merchants and enterprises worldwide for innovation.

Other goals for Stripe for 2024 include using AI to drive more steady growth and providing its partners and customers with improved assistance in understanding the intricacies of the payments industry.

Additionally, it wants to increase the modularity of its platform so that it can better meet the wide range of needs of its consumers.