Stripe, the financial infrastructure platform for businesses, has launched new payment tools and financing options in the UK, intending to improve access to capital and accelerate the growth of hundreds of thousands of UK businesses.
The new product features include business financing through Stripe Capital, lower-cost open banking-powered payments, and faster payouts for UK firms.
Only 50 per cent of bank loan applications by UK small businesses were successful last year, a significant dip from the 80 per cent success rate in 2018. Stripe explained that without the funds to invest in new products, or modernise their processes, many small firms are forced to dial back their ambitions or may struggle to survive at all.
John Collison, co-founder of Stripe
“UK businesses are inventing and building, but getting access to capital at the right time is a rate limiter on their growth,” explained John Collison, co-founder of Stripe. “The payment 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.”
With the launch of Stripe Capital in the UK, small businesses can access flexible financing to invest in their own expansion; helping to buy new equipment, hire more staff, or upgrade their customer experience.
Stripe Capital uses a company’s transaction and business history on Stripe to proactively qualify businesses for financing. Funds hit approved accounts the next business day, and businesses can repay the loan as they earn.
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.
Bolstering UK growth
The UK is Stripe’s second-largest market, with around 600 UK businesses joining the Stripe network every day. Hoping to bolster its success, the financial platform is now expanding its footprint in the UK. The company’s new flagship London office, which is now open at 201 Bishopsgate, will house expanding teams in engineering, sales, partnerships and operations.
Positioned between the global financial centre in the City of London and the technology hub around Old Street, the space will enable Stripe teams to deepen relationships with a range of partners, from innovative tech companies to leading financial institutions.
John Collison explained: “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 that 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.”
Introducing Pay by Bank
Stripe has also launched its first open banking-powered payment method, ‘Pay by Bank’, in the UK. The low-cost, real-time payment method enables consumers to pay directly from their bank account.
Online car marketplace Cinch and insurance brokerage AJ Gallagher are among the large companies already using Pay by Bank to reduce their payment costs and improve their cash flow. Businesses selling high-value goods and services could save tens of thousands of pounds in payment fees every month.
Stripe is also helping UK businesses to access their funds more quickly. Using the UK’s Faster Payments Scheme, Stripe has reduced the time it takes for a business to receive earnings from two days to a couple of hours, helping companies manage their cash flow more easily. These improvements, which are free for businesses, will be rolled out in the EU and US later this year.
These new payment capabilities arrive as Stripe has doubled the number of payment methods it supports from 50 to more than 100 in the last year, including London-based Revolut Pay.
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