Dive Brief:
- The payments behemoth Stripe has purchased the Salt Lake City digital sales software company Lemon Squeezy, according to online posts.
- Lemon Squeezy disclosed the sale in a blog post on its website Friday, and in a post on the social media site X. The terms of the deal were not disclosed.
- Lemon Squeezy provides a number of services to merchants intended to help them sell goods via digital channels, the company’s website says. Those services include help with tax compliance, payment subscriptions, fraud prevention and failed payment recovery, among other things.
Dive Insight:
In a post on X, Stripe CEO Patrick Collison welcomed Lemon Squeezy into the Stripe fold. A representative of Stripe did not immediately respond to a request for comment. “We’re going to scale merchant of record selling in a big way,” Collison wrote.
Representatives of Lemon Squeezy also did not respond to requests for comment, but in the blog post, the company’s CEO and cofounder, J.R. Farr, said that the two company’s goals are “perfectly aligned.”
“Stripe continues to set the bar in the payments industry with its world-class developer experience, API standards, and dedication to beauty and craft,” he wrote in the blog post. “It's no secret that we (like many) have always admired Stripe.”
While the two companies have been competitors in some ways, they’ve also partnered. Farr noted in his blog post that Lemon Squeezy had been using Stripe processing payments since its inception in 2020.
Stripe is a payments software company that integrates its services in merchants’ digital platforms and provides payment processing and fraud prevention tools, among other digital services. The company, which has dual headquarters in San Francisco and Dublin, was founded by the CEO and his brother John Collison.
The technology news site TechCrunch reported the news earlier on Friday, noting that Lemon Squeezy was a four-year-old rival to Stripe that was able to calculate sales tax for digital transactions in other countries, and to manage related legal issues internationally as well.
