Stripe Unveils New Financial Tools in UK
Hey FinTech Fanatic!
Payments Giant Stripe has introduced new payment tools and financing options in the UK to enhance access to capital and support the growth of UK businesses.
The new features include business financing through Stripe Capital, cost-effective open banking payments, and faster payouts for UK companies.
Last year, only 50% of small business bank loan applications in the UK were successful, down from 80% in 2018. Stripe highlighted that without necessary funds, many small businesses struggle to grow or even survive.
“UK businesses are innovating, but access to timely capital limits their growth,” said John Collison, co-founder of Stripe. “Our new payment tools and financing options will facilitate quicker money movement and easier investment for business growth.”
Stripe Capital now offers flexible financing for UK small businesses to invest in expansion, such as purchasing equipment, hiring staff, or upgrading services. Approved funds are available the next business day, with repayments tied to business earnings. Later this year, UK platforms using Stripe Connect will also offer financing to their users.
Stripe’s expansion in the UK, its second-largest market, includes a new London office at 201 Bishopsgate, housing growing teams in engineering, sales, partnerships, and operations. This location will strengthen relationships with tech companies and financial institutions.
Collison stated, “The UK’s talent and financial center make it a prime location for Stripe. We’re seeing substantial growth among UK businesses eager to modernize and expand globally, affirming our commitment to the UK market.”
Stripe has also introduced 'Pay by Bank', its first open banking-powered payment method in the UK, allowing consumers to pay directly from their bank accounts. Companies like Cinch and AJ Gallagher are using this method to lower payment costs and improve cash flow, potentially saving thousands monthly.
Furthermore, Stripe is enabling quicker fund access for UK businesses through the Faster Payments Scheme, reducing the earnings receipt time from two days to a few hours. These enhancements will extend to the EU and US later this year.
In the past year, Stripe has doubled its supported payment methods from 50 to over 100, including Revolut Pay.
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