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Tech start-up Stripe is bringing banking into the 21st century. Recently, the company released a Bank as a Service (BaaS) API called Striped treasure. This enables users of the Stripe platform to “build a comprehensive and scalable financial product” for their clients.
Stripe Treasury allows you to integrate financial services into your marketplace or platform. By doing this, businesses can create bank accounts for their customers that easily send, receive, and store funds.
For example, you can create an FDIC insurance eligible account that earns interest and supports remote check deposit. You can make a one-time payment or set up recurring payments to pay your bills. In addition, you can transfer funds via national or international transfers.
“Everything about running an online business has been transformed by technology, but business banking has largely been left behind.” mentionned Karim Temsamani, Head of Banking and Financial Products at Stripe. “But we’re changing that, just like we decided to change the payments ten years ago. Providing a user-centric banking experience should be as easy as creating a virtual server. This is what we are starting to accomplish at Stripe with our network of banking partners.
By partnering with a network of global banks, Stripe Treasury can make it easier for businesses to integrate banking services into their platform. Currently, Stripe’s partner network includes Goldman Sachs Bank USA and Evolve Bank & Trust as US partners, and Citibank NA and Barclays as global expansion partners.
According to a recent Bandaged research, access to financial services for businesses today is a long-term process. It can take an average of seven days for online businesses to open a bank account. To open an account, around 23% of businesses need to send a fax, and around 55% of businesses need to physically visit a branch to open an account.
From the research, Stripe has also received feedback from users wanting a “digital solution for financial services” that they can use directly from the software platform that powers their operations. So, Stripe Treasury is the way for Stripe to remove some of these barriers to create a solution.
“Together, Stripe and Goldman Sachs are focused on relieving the frustrations Internet businesses face in making banking services work for them,” mentionned Hari Moorthy, Global Head of Banking, Goldman Sachs. “The millions of ambitious and fast-growing businesses in the Stripe ecosystem will soon discover a vastly improved end-to-end digital banking experience. “
At present, Stripe Treasury is still invite only, but it has a heavy user. The leading e-commerce platform Shopify will be the first to partner with Stripe Treasury. It will use the BaaS API to power Shopify Balance, the company’s professional account designed for businesses and independent contractors.
“At Shopify, we focus on reducing barriers to entrepreneurship. As part of this mission, we will soon be launching Shopify Balance to allow our merchants to take control of their finances, ”said Tui Allen, Senior Product Manager for Banking Services at Shopify. “We are excited to partner with Stripe to provide our merchants with essential financial tools and products for their banking experience, specifically designed for the financial needs of their businesses. “
With Shopify Balance, Shopify customers can open a bank account directly through Shopify. And, the Shopify balance will include a one-stop-shop account in the Shopify administrator. Customers will be able to view cash flow, pay bills and track expenses.
Shopify Balance will also have a Shopify balance card. With these physical and virtual cards, merchants can make a purchase in-store, online, or through their mobile wallets. They will even be able to withdraw money from ATMs. In addition, there will be many perks such as cash back rewards and discounts on daily trading expenses.
The financial services offered by Stripe Treasury appear to be able to help businesses minimize the lengthy process used today to meet day-to-day banking needs. It could also create a new source of income for businesses by allowing them to function as a bank.