Payments processor Stripe is teaming up with banks including Goldman Sachs, Citigroup and Barclays to provide checking accounts and other banking services, reports the Wall Street Journal.
- Stripe, which processes payments for online businesses and e-commerce platforms, will soon allow its customers to offer insured, interest-bearing bank accounts, debit cards and other cash-management services.
- Stripe's offerings are designed for the merchants and vendors that do business with Stripe’s customers, and are not retail focused.
- With its new offerings, Stripe is following other digital banks such as Square’s Cash App and Chime Financial, which have become popular by offering alternatives to checking accounts. Citigroup has also partnered with Google, which will allow its users to open checking and savings accounts through the Google Pay app.
- Stripe, however, is focusing on automating business banking, specifically for platforms that have ties to other businesses, the WSJ said.
- “If you are a Goldman Sachs or a Citi or one of these firms, you are watching the fact that new businesses live their lives online,” said John Collison, Stripe’s co-founder and president, told the WSJ.
- Canadian e-commerce company Shopify is an early adopter and already uses Stripe’s banking services for its Shopify Balance. Starting early next year, will offer Shopify Balance accounts to thousands of merchants that use its software.