Stripe is solidifying its presence in the UK by opening a flagship office in London’s financial district and introducing its first Open-Banking powered payment method alongside new financing options for small businesses.
The UK is Stripe’s second-largest market, with approximately 600 businesses joining the network each day. These companies will be among the first globally to access Stripe’s new Open-Banking powered payment method, Pay by Bank, which offers a low-cost, real-time payment solution that allows consumers to make payments directly from their bank accounts.
Additionally, UK businesses operating on Stripe can now leverage flexible financing through the Stripe Capital product. This service assesses a company’s transaction and business history to prequalify them for funding, with approved funds made available the next business day. The repayment is based on the company’s earnings.
According to Stripe, only 50% of bank loan applications by UK small businesses were approved last year, a decline from 80% in 2018. In the US, businesses that utilized financing from Stripe Capital experienced revenue growth that was 114% faster than their peers.
Later this year, UK marketplaces and platforms using Stripe Connect will also gain the ability to offer financing options to their own users through Stripe Capital.
John Collison, co-founder of Stripe, stated, “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.”
Additionally, Stripe recently opened its new London office at 201 Bishopsgate, which will accommodate expanding teams in engineering, sales, partnerships, and operations. Collison remarked, “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 among UK businesses eager to modernize their financial systems and expand globally. That gives us the conviction that now is the time to deepen our commitment to the UK.”