The Problem Worth Solving
In 2010, accepting payments online was a nightmare for developers. The process involved weeks of paperwork, complex merchant account setups, dealing with banks, and integrating clunky payment gateway code. For small startups, this barrier often delayed launches by months or made monetization impossible altogether.
Irish brothers Patrick and John Collison experienced this pain firsthand with their previous startup. They knew that if someone could make online payments as easy as making an API call, it would be revolutionary. This insight led to Stripe – originally called "/dev/payments" – a payment processing service that could be integrated with just seven lines of code.
The Core Insight
"What once took weeks of integration work could become a simple cut-and-paste job. The key was to hide all the complexity behind a clean API that developers would love to use."
Initial MVP & Launch Strategy
The Minimalist Beginning
Stripe's MVP wasn't a fancy dashboard, complex fraud detection system, or comprehensive payment platform. It was simply a reliable API endpoint that could process a credit card transaction, paired with the necessary backend plumbing to handle the money movement securely and legally.
Within just two weeks of building their prototype, the Collisons processed their first live transaction for 280 North, a fellow Y Combinator alumni company. This rapid validation proved that developers desperately needed a simpler payment solution.
The "Collison Installation" Approach
Rather than building a self-service signup flow, the Collisons took an unscalable but brilliant approach: they personally installed Stripe for each early customer. When a founder expressed interest, Patrick or John would literally say "Give me your laptop" and proceed to integrate Stripe's code right there on the spot.
This hands-on method became known as the "Collison Installation" and served multiple purposes:
- Ensured early adopters had a smooth, friction-free experience
- Provided immediate, real-time feedback on integration issues
- Built deep relationships with early customers who became evangelists
- Allowed the product to improve before reaching a wider audience
- Demonstrated the product's simplicity – if it took hours, it wouldn't be compelling
Trust Through Compliance
Because payments involve trust, security, and regulatory compliance, Stripe didn't rush to public launch. The private beta approach let them work through legal and banking relationships while maintaining quality control. Each new user was carefully vetted and onboarded, ensuring the service remained reliable as it grew.
8 MVP Development Principles from Stripe
Solve a Genuine Pain Point
Stripe succeeded because the Collisons experienced the payment integration nightmare firsthand. Don't build solutions looking for problems – find painful problems that desperately need solutions.
Do Things That Don't Scale (Initially)
The Collison Installation was completely unscalable, but it created exceptional early experiences and provided invaluable feedback. Manual processes can be powerful validation tools before automation.
Developer Experience is Product
For B2B products, the user experience for the person integrating your product is as important as the end-user experience. Great documentation, simple APIs, and quick integration = happy advocates.
Launch Fast, Iterate Faster
Stripe processed its first transaction within two weeks of starting. Speed to market matters, but speed of iteration matters more. Stay close to users and fix issues immediately.
Let Users Drive Feature Development
Don't guess what features to build – listen to actual users. Stripe's roadmap emerged organically from real developer needs, not a boardroom strategy session.
Remove All Friction
Free signup, transparent pricing, no setup fees, instant activation. Every barrier to adoption is a leak in your funnel. Identify and eliminate friction points ruthlessly.
Build for Word-of-Mouth
If your product is remarkable enough, users will tell others. Stripe grew primarily through developer recommendations, not advertising. Focus on creating experiences worth talking about.
Expand From a Strong Beachhead
Stripe didn't try to do everything at once. They nailed simple payment processing first, then methodically expanded into adjacent areas. Dominate one use case before spreading out.
Ready to Build Your MVP?
Learn from Stripe's success and start building your MVP with a developer-first approach.