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Stripe makes banking-as-a-service play

Stripe makes banking-as-a-service play

Stripe has brought in several big name banks to back its new banking-as-a-service API that lets online businesses embed financial services in their platforms.

Stripe Treasury promises to make it easy for firms to send, receive and store funds, slashing the red tape associated with opening business bank accounts.

E-commerce marketplace Shopify is taking advantage of the API, working with Stripe and Evolve Bank to offer its merchants a business account built specifically for them.

Shopify merchants will be offered interest-earning accounts eligible for FDIC insurance in minutes. Customers can get near-instant access to revenue earned through Stripe, spend this directly from their balance with a dedicated card, transfer it via ACH or wire transfer and pay bills.

Stripe says more functionality will come next year, in part thanks to a US partnership with Goldman Sachs. Meanwhile, Citibank and Barclays are onboard as global expansion partners.

Hari Moorthy, global head, transaction banking, Goldman Sachs, says: "Together, Stripe and Goldman Sachs are focused on relieving the frustrations internet businesses find in making banking work for them. The millions of ambitious, fast-growing businesses in the Stripe ecosystem will soon discover a dramatically improved end-to-end digital banking experience."

Treasury marks a significant milestone in Stripe's journey from e-commerce payments player to one-stop-shop for the internet's financial services' needs.

Karim Temsamani, head, banking and financial products, Stripe, says: "Everything about running an online business has been transformed by technology, but business banking has largely been left behind.

"But we’re changing this, just like we set out to change payments a decade ago. Offering a user-centric banking experience should be as easy as spinning up a virtual server—that’s what we’re starting to accomplish at Stripe with our bank partner network."

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