Stripe strengthens its open banking offering in the UK

The financial infrastructure platform took advantage of its annual conference to announce several new features for its UK customers. These include a Pay by Bank solution, illustrating Stripe's commitment to developing its open banking services. Overall, the company aims to support the growth of small businesses by offering them innovative, alternative services. A way for them to increase their room for manoeuvre when funds run short.

FACTS

• At the Stripe London Tour, the brand's annual meeting in the UK, Stripe announced the arrival of a new payment solution.

• This is an offering from Pay by Bank, an open banking-based payment solution offering a number of significant advantages:

• The solution should be inexpensive for Stripe customers, and will enable real-time payments to be made directly via their bank accounts.

• According to the financial infrastructure platform, some businesses, such as sellers of high-value goods, could save several thousand pounds in transaction fees every month.

• Customers will also be able to access their funds more quickly. Waiting times will be reduced from around two days to just a few hours. This free feature will then be offered in Europe and the USA.

• At the same time, Stripe has announced the launch of Stripe Capital in the UK, a financing offer for small businesses that has already proved its worth in the USA.

• The offer differs from traditional loans in several respects:

• The solution enables loans of up to £25,000 to be taken out quickly.

• Repayment is flexible, depending on the customer's income.

• In terms of availability, Stripe Capital is currently only available to companies already working with the platform.

CHALLENGES

• Boosting the UK economy: The aim of these new products is to accelerate the movement of money between companies, making it easier for them to make investments when they identify opportunities.

• An alternative to traditional financing solutions: According to Stripe, only 50% of loans requested by small businesses were validated last year in the UK, compared with 80% in 2018. Lacking available funds, these businesses find themselves forced to postpone their investments. Stripe Capital therefore aims to offer its customers flexible financing to accelerate their growth, whether for equipment, recruitment, or any other need.

MARKET PERSPECTIVE

• The UK is currently Stripe's second-largest market, with 600 new UK customers joining its network every day. With this in mind, Stripe has also announced that it is strengthening its presence in London by setting up new premises there. A further sign of the platform's commitment to the country's businesses.

• The launch of Pay by Bank also illustrates the company's desire to expand further into the open banking market. A decision initiated in 2022 with the launch of Financial Connections, the American company's first solution based on this technology.