Stripe Inc. will team up with some of the world’s largest banks to offer checking accounts to businesses that sell their wares on e-commerce platforms such as Shopify Inc.
Stripe said banks including Citigroup Inc., Goldman Sachs Group Inc. and Barclays Plc will now be able to offer checking accounts and other financial services through e-commerce providers. If a coffee shop, for instance, uses Shopify to sell mugs and coffee beans online, it will now be able to open a bank account too.
Patrick Collison, Stripe CEO and co-founder (right) and John Collison, Stripe president and co-founder (left) Photographer: David Paul Morris/Bloomberg
“Everything about running an online business has been transformed by technology, but business banking has largely been left behind,” Karim Temsamani, head of banking and financial products at Stripe, said in a statement. “But we’re changing this.”
Businesses use Stripe’s software to accept online payments, and the company has benefited during the pandemic as people stuck at home have relied more heavily on e-commerce to do their shopping. The company is in talks to raise a new funding round that could value it at as much as $100 billion, Bloomberg reported last month.
For online firms, setting up a bank account takes an average of seven days, Stripe said. Almost a quarter of businesses ultimately have to send a fax to open the account, and more than half need to visit a bank branch. With its latest offering, which will be known as Stripe Treasury, the company is seeking to disrupt all that.
Still, Stripe is relying on established banks for the service.
“Our vision is for this partnership to fuel global commerce by enabling Stripe to launch the next-generation banking proposition for their clients,” Manish Kohli, global head of payments and receivables in Citigroup’s treasury and trade solutions business, said in the statement.
Stripe’s plans were reported earlier Thursday by the Wall Street Journal.
—Jenny Surane (Bloomberg)