The 409A valuation was revealed to employees in an email on Friday.

Stripe, the payments giant founded by the Collison brothers, has cut its internal valuation by 28% according to a report in the Wall Street Journal. Stripe’s so-called 409A valuation is the fair market value of the common stock of a private company as valued by a third-party appraiser, and is used to grant employees stock options. According to WSJ’s sources, Stripe informed employees in an email Friday that this value was $29, compared with $40 in the most previous 409A assessment.

At $29 per share, Stripe is worth $74 billion. Stripe’s board approved this valuation on June 30, though no reason was given to employees for its decline.

That valuation is different compared to a “funding round” value, however, which is determined by demand for a startup’s shares by investors. In March 2021, Stripe raised $600 million at a $95 billion tag. Allianz X, Axa, Baillie Gifford, Fidelity Management & Research Company, Sequoia Capital, and Ireland’s National Treasury Management Agency (NTMA) invested in the round.

However, fintech valuations have plunged recently, the most glaring example of which is the latest funding of BNPL biggie Klarna, which had to take an 85% haircut earlier this month in a “down round” raise of $800 million.

“Klarna has not been immune to the significant downdrafts of fintech stock in public markets,” said Sebastian Siemiatkowski, CEO, at the time. “The company’s peers are down 80-90% vs peak valuations.”

Klarna also cited other macro factors including inflation, rising rates, potential recession, the after effects from the pandemic, and supply chain disruptions, that affected the investing environment, and in turn its valuation.

According to the WSJ, Stripe is most often compared with PayPal Holdings (NASDAQ: PYPL). The PayPal stock has fallen by over 60% year-to-date.

Related Story: Stripe Raises $600M; Triples Valuation To $95B In Less Than A Year