Stripe said this programme will let platforms create their own credit cards for customers, providing new revenue streams and giving easier access to capital for smaller businesses.
Fintech giant Stripe has announced a new way for businesses to access credit by introducing a new charge card.
This service will allow other fintechs and platforms to create virtual or physical cards that customers can use on credit. The feature is currently in a beta offering in the US, with plans to expand to the EU and UK in the future.
Stripe said these charge cards will provide new revenue streams for platforms and provide smaller businesses with easier access to capital.
Stripe head of product for banking-as-a-service Denise Ho said access to capital can “make all the difference” for a business that’s starting out or looking to expand. “Our new charge card allows fintechs and SaaS platforms to provide access to a reliable source of credit for the many small businesses they work with,” Ho said.
Stripe said its new service will remove some of the challenges other platforms would face in developing their own credit offerings, such as repayment collection and licensing requirements.
The fintech’s charge card scheme will offer adjustable settings, so businesses can set individual credit limits and their own repayment schedules. The programme runs on Stripe Issuing, which the company claims already supports around half a million transactions per day.
The charge card offering will be linked with other Stripe services, so platforms will be able to use features like Invoicing and Checkout when they need to collect repayments.
While supporting the finances of smaller businesses, Stripe said this scheme will also make funding easier for platforms offering credit, as funds issued out can be sent back to Stripe after the transaction settlement date.
Stripe recently jumped back into the buying market with the acquisition of Okay, a US analytics platform for engineering teams. This marked Stripe’s first acquisition in roughly 16 months, since it bought card reader provider BBPOS in January 2022.
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