FinTech: Stripe’s New ‘Treasury’ Product Offers Bank Accounts To Its Platform Partners

December 4, 2020 | FinTech, News
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Stripe’s banking partners are Goldman, Evolve (US) and Citibank, Barclays (global).

Stripe announced Thursday the launch of its Treasury product. Customers, such as Shopify (NYSE: SHOP), can now access an API to let their merchants open a bank account within the platform itself, quickly and painlessly. (Stripe)

According to the company, an ‘off-line’ banking experience is a pain point for businesses. The payment giant’s research shows that nearly half of the merchants find that banking travails have hindered their growth. Opening a bank account can take as much as 7 days, may need to send a fax, and often requires a personal visit to a branch.

Stripe: Embedded finance

Why not allow them to do this on their merchant platform, such as Shopify?

An emerging trend, this kind of integration is called embedded finance.

With Stripe Treasury, the Shopify merchant does not have to go outside the platform to open a bank account for the business.

Platforms such as Shopify now offer their users interest-earning accounts eligible for FDIC insurance in minutes, enabled by Evolve Bank & Trust.

Platform business customers can therefore have 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, pay bills, and more.

U.S. partnerships

Shopify Balance, the business account on offer through this route, will allow the platform’s merchants to better manage their finance and working capital.

“At Shopify, we’re focusing on reducing the barriers to entrepreneurship. As part of that mission, we will soon launch Shopify Balance to empower our merchants to take control of their finances,” said Tui Allen, Senior Product Lead for Banking at Shopify.

Further, the fintech says it will deepen its new partnership with Goldman Sachs (NYSE: GS), its other U.S. partner, to add even more functionality to Stripe Treasury in the US next year.

“Together, Stripe and Goldman Sachs are focused on relieving the frustrations internet businesses find in making banking work for them,” said Hari Moorthy, Goldman Sachs Global Head of Transaction Banking. “The millions of ambitious, fast-growing businesses in the Stripe ecosystem will soon discover a dramatically improved end-to-end digital banking experience.”

Global expansion

Stripe will also allow standardized access to banks such as Citibank N.A. (NYSE: C) and Barclays (NYSE: BCS) via APIs to its platform users.

“Through Stripe, these banks are able to extend their reach to millions of businesses,” it said.

“Our vision is for this partnership to fuel global commerce by enabling Stripe to launch the next generation banking proposition for their clients,” said Manish Kohli, Global Head of Payments and Receivables, with Citi’s Treasury and Trade Solutions.

Related Story:   Payments Unicorn Stripe Raises $600 Million at a $36 Billion Valuation

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