Case Study: Postmates achieves 2.16% higher authorization rates and $70M+ in revenue with Stripe

Postmates boosts authorization rates with Stripe, adding $70+ million in revenue

Postmates, a leading on‑demand delivery marketplace serving 4,200 U.S. cities and processing billions in payments, needed a more robust payments platform to handle multiple payment methods, recurring charges, instant courier payouts and white‑labeled KYC onboarding. Their key challenge was improving authorization rates at checkout to reduce declines, avoid customer churn, and lift revenue in a high‑CAC market.

After an 18‑month A/B test versus a leading processor, Postmates moved to Stripe and used features like Adaptive Acceptance, Card Account Updater (CAU) and Billing Smart Retries. Stripe delivered a 2.16% uplift in authorization rates—producing more than $70 million in additional revenue (CAU +1.72% ≈ $60M, Adaptive Acceptance +0.33% ≈ $11M, Smart Retries +0.11% ≈ $3M+)—and showed a full percentage‑point higher auth success in head‑to‑head comparisons.

Postmates

Samantha Philips

Payments Product Lead