Stripe Introduces Open Banking Payments

Stripe has launched an open banking-powered payment method and faster manual payouts in the United Kingdom, along with expanding its Stripe Capital service to the region, the company announced on May 21.

UK businesses using Stripe will be the first to access the new Pay by Bank feature, allowing consumers to make low-cost, real-time payments directly from their bank accounts. This method is particularly beneficial for businesses selling high-value goods and services, potentially saving them substantial amounts in payment fees each month.

Additionally, Stripe is introducing a capability in the UK that enables businesses to receive earnings within a few hours, a significant improvement over the traditional two-day waiting period. This service is expected to roll out to the European Union and the United States later this year.

Stripe Capital, which offers flexible financing based on a company’s transaction and business history on Stripe, is now available to UK businesses. This service will also be extended to UK marketplaces and platforms using Stripe Connect later this year.

“UK businesses are inventing and building, but getting access to capital at the right time is a rate limiter on their growth,” said John Collison, co-founder of Stripe. “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.”

The announcement coincides with Stripe opening a new London office, which will house 250 employees across various departments, including engineering, sales, partnerships, financial compliance, and operations. This expansion underscores the importance of the UK market to Stripe, with more users based in London than any other city globally.