Payment company Stripe now allows businesses to link directly to their customers' bank accounts, providing quick access to their financial data.
Stripe says its new Financial Connections feature will eliminate the need for businesses to create custom integrations with a host of different financial institutions, or for consumers to have to go through the "tedious process" of taking additional steps, such as completing micro-deposits.
The payment gateway provider, which reached a $95.000 billion valuation in its latest funding round in March, said the service will allow companies to use their customers' financial data to expedite payments, reduce fraud, underwrite risks and create new products.
Stripe Financial Connections
Stripe says Financial Connections will allow businesses to streamline direct debit payments through linked bank accounts, which it says will drive conversion and allow platforms to use linked bank account information to underwrite risks and offer loans to their customers. commercial users.
Financial Connections will also open the door to a suite of other financial services according to Stripe, including giving customers tools to track budgets, pay bills and identify spending habits.
Stripe says Financial Connections allows customers to simply enter their online banking credentials and select the account they want to link, and it works with the full range of platforms and businesses, from NFT creators to churches.
The company says Financial Connections will work with 90% of US bank accounts and will allow businesses to retrieve data from approximately 5000 financial institutions.
The service is expected to go live first in the US, where Stripe is one of the most popular credit card processing services for businesses, but the company hasn't said whether the service could roll out to other regions.
The news comes as Stripe, currently the world's most valuable private company, is expanding the variety of services it offers to its customers.
Stripe now offers a range of crypto-focused services, including fiat payment APIs, Know Your Customer (KYC) tools, fraud prevention, on-ramps, and identity verification.
The company has also taken increasing steps to enter the "Buy Now, Pay Later" space by partnering with Clearpay and Klarna, making it easier for users to spread the cost of their purchases across all lines.