Stripe is strengthening its position in the UK, opening a flagship London office in the heart of the City and launching its first Open-Banking-powered payment method and new financing options for small businesses.
The UK is Stripe’s second largest market, with around 600 businesses joining the US-headquartered giant’s network every day.
These firms will be the first in the world to be given access to Stripe’s first Open-Banking-powered payment method, Pay by Bank. Already being used by some companies, Pay by Bank promises a low-cost, real-time payment method that allows consumers to pay directly from their bank account.
Meanwhile, UK businesses that run directly on Stripe can also now access flexible financing to invest in their expansion through the Stripe Capital product, which uses a company’s transaction and business history to proactively qualify them for financing. Funds hit approved accounts the next business day, and businesses repay the amount as they earn.
Only 50% of bank loan applications by UK small businesses were successful last year, down from 80% in 20118, says Stripe. In the US, businesses that took financing from Capital grew their revenue 114% faster than peers.
Later this year, UK marketplaces and platforms that use Stripe Connect will also be able to use Stripe Capital to offer financing to their own users.
John Collison, co-founder, Stripe, says: “The payments tools and financing options we’re launching today will help money move around the economy faster and make it easier for businesses to invest when they see an opportunity to grow.”
This week, Stripe has also opened its new London office at 201 Bishopsgate, which will house expanding teams in engineering, sales, partnerships and operations.
“The UK’s talent, infrastructure, and financial centre make it an excellent place to build Stripe from, but that’s only half the story. We’re also seeing huge growth amongst UK businesses who are excited to modernise their financial systems and expand globally. That’s what gives us the conviction that now is the time to double down in the UK,” says Collison.
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