Meta Insiders Debate Key Issue for Reels: Whether to Share Ad Dollars With CreatorsRead Now

Bolt, a Checkout Startup Worth $11 Billion, Lost Customers as Revenue Stalled

By  |  April 28, 2022 4:38 PM PDT

Bolt, which develops software that online stores use to help shoppers pay with one click, started the year riding high after rapid-fire fundraising and a private valuation that skyrocketed to $11 billion in January from $6 billion in October. It also easily outlasted Fast, a rival that had raised $120 million from backers including payments giant Stripe but imploded earlier this month.

Behind the scenes, though, Bolt’s revenue growth fell dramatically, and questions have arisen about the veracity of its past statements about merchants that were using its services. Revenue from transactions Bolt processed grew around 10% to $28 million last year after it slashed the fees merchants pay for its services, according to an internal document viewed by The Information. The dramatic slowdown shows Bolt is under significant competitive pressure from PayPal and Shopify, which have launched their own one-click checkout buttons for merchants. And while Bolt has touted efforts to work with more high-profile retailers, the number of merchants it works with has been hovering in the low 300s since 2020 and declined in the beginning of this year, the document showed.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
Creator Economy
Meta’s Resistance to Sharing Ad Sales Starts to Crumble
Photo: Bloomberg
For at least a year, one question has hung over Meta Platforms-owned Facebook and Instagram: whether the apps will introduce a way to share a cut of ad revenues with more creators, similar to how YouTube pays video-makers. Our story today by Sylvia and Kaya goes deep into the debate at Meta over introducing ad-revenue sharing, which some staff viewed as a slippery slope, and a parallel argument...
Latest Briefs
 
Intel Cuts Salaries Amid Grim Outlook
AMD Forecasts Sales Slowdown Due to Weak PC Demand
Snap Warns Revenue Could Fall 10% This Quarter
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Photo: Bloomberg
Creator Economy
Meta’s Resistance to Sharing Ad Sales Starts to Crumble
For at least a year, one question has hung over Meta Platforms -owned Facebook and Instagram : whether the apps will introduce a way to share a cut of ad revenues with more creators, similar to how YouTube pays video-makers.
Snap CEO Evan Spiegel. Photo by Getty Images.
The Briefing markets amazon
Snap’s Spaghetti Strategy Is Cause for Concern
Snap’s abysmal financial forecast for the current quarter continued the company’s string of rough news.
Art by Shane Burke. Photo by Bloomberg
Exclusive
Musk Leaves Twitter Staff Without Equity Plan as Deadline Looms
Shortly after Elon Musk bought Twitter last fall, he promised Twitter staff that they could look forward to the kind of stock rewards employees at SpaceX—another private company Musk runs—enjoy.
Illustration by Getty Images.
Opinion venture capital
The Relationship Model Is Killing Venture Capital
The social and racial homogeneity of the venture capital industry has long been a source of frustration for entrepreneurs and investors alike.
Illustration by Josh Brill
Exclusive entertainment facebook
Meta Insiders Debate Key Issue for Reels: Whether to Share Ad Dollars With Creators
When Wall Street analysts dial into an earnings call tomorrow with Mark Zuckerberg, they’re likely to pepper the Meta Platforms CEO with different versions of a favorite question: What’s the latest on making money from Reels, Meta’s answer to TikTok?
Stripe CEO Patrick Collison. Photo: Bloomberg.
startups
Stripe in Talks to Raise Up to $3 Billion From Current Investors
Less than a week after telling employees that it would evaluate a public offering over the next year, payments giant Stripe is moving quickly on a deal to raise as much as $3 billion from its existing investors.