Stripe is significantly bolstering its presence in the UK by opening a flagship office in London’s financial district and introducing new payment and financing solutions tailored for small businesses.
As Stripe’s second-largest market, the UK sees around 600 businesses joining the US-based fintech giant’s network daily. These businesses will be the first globally to access Stripe’s new Open-Banking-powered payment method, Pay by Bank. This innovative payment method promises low-cost, real-time transactions, enabling consumers to pay directly from their bank accounts.
Additionally, UK businesses using Stripe can now take advantage of Stripe Capital, a flexible financing product designed to help businesses invest in their growth. Stripe Capital leverages transaction and business history data to qualify companies for financing proactively, with approved funds being deposited the next business day. Repayments are made as the businesses earn, providing a flexible alternative to traditional bank loans. This comes in response to the declining success rate of bank loan applications for UK small businesses, which fell to 50% last year from 80% in 2018.
Later this year, UK marketplaces and platforms utilizing Stripe Connect will also be able to offer Stripe Capital financing to their users, further extending the benefits of this new financial tool.
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.”
In line with these developments, Stripe has inaugurated a new office at 201 Bishopsgate, London, which will house expanding teams across engineering, sales, partnerships, and operations. Collison highlighted the strategic importance of the UK, citing its talent, infrastructure, and status as a financial center as key factors in Stripe’s decision to expand.
“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 amongst UK businesses who are excited to modernize their financial systems and expand globally. That’s what gives us the conviction that now is the time to double down in the UK,” added Collison.