Stripe will now let businesses pull your financial data directly

Payments company Stripe now allows businesses to link directly to their customers’ bank accounts, providing quick access to their financial data.

Stripe says its new Financial Connections feature will remove the need for businesses to create custom integrations with a slew of different financial institutions, or for consumers to go through the “tedious process” of taking additional steps such as completing micro deposits.

The payment gateway provider, which hit a $95 billion valuation in its last funding round in March, said the service will allow businesses to use their customers’ financial data to streamline payments, reduce fraud, underwriting risks and creating new products.

Stripe Financial Connections

Stripe says Financial Connections will allow businesses to streamline direct debit payments through linked bank accounts, which it says will boost conversion, and allow platforms to use linked bank account information to underwrite risk. and offer loans to their business users.

Financial Connections will also open the door to a suite of other financial services according to Stripe, including providing customers with tools to track budgets, pay bills and identify spending habits.

Stripe says Financial Connections allows customers to simply enter their online banking credentials and select the account they want to link, and it works with the full range of platforms and companies, from NFT creators to churches.

The company says Financial Connections will work with 90% of US bank accounts and allow businesses to retrieve data from approximately 5,000 financial institutions.

The service is expected to go live first in the US, where Stripe is one of the most popular credit card processing services for businesses, but the company hasn’t said whether the service might roll out. in other regions.

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The news comes as Stripe, currently the most valuable private company in the world, expands the variety of services it offers to its customers.

Stripe now provides a range of crypto-focused services, including fiat payment APIs, Know Your Customer (KYC) tools, fraud prevention, on-ramps, and identity verification.

The company has also taken increasing steps to enter the “Buy Now, Pay Later” space by partnering with Clearpay and Klarna, making it easier for users to spread the cost of their purchases across line.

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