Stripe rolls out tool to connect firms directly with customer bank accountsLeigh Mc Gowranon May 5, 2022 at 10:08 Silicon RepublicSilicon Republic

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Fintech giant Stripe has launched a new programme to allow businesses to establish direct connections with the bank accounts of their customers.

The Irish-founded fintech said Stripe Financial Connections will let businesses verify accounts for payments, check balances to reduce payment failures, retrieve historical transactions and confirm bank account ownership to reduce fraud.

Stripe said businesses can also use the programme to help their customers track budgets, pay bills and identify spending patterns.

“Direct bank account connections have historically been nearly impossible to establish on a programmatic basis,” Stripe said in a blog post yesterday (4 May). “Financial Connections provides an easier solution: customers simply enter their online banking credentials and select the account they’d like to link.”

Jeremy Ricketts, product manager at church software platform Planning Center, said Financial Connections helps the platform “quickly and easily” verify bank accounts for donations.

“This is good for the churches we support, who can more easily accept donations, and good for their members, who can quickly link their bank accounts,” Ricketts said.

The fintech giant said businesses that use the new service can integrate bank account information with its other financial products like Stripe Connect, Capital, Identity, Issuing and Stripe Treasury.

Stripe claimed platforms that use Financial Connections and Connect reduce payout failures by 75pc, while the combination of Financial Connections and Capital lets Stripe offer 55pc larger loans to users.

“Businesses have been asking us for an easy, secure way to connect to and verify their customers’ bank accounts,” Stripe business lead Clara Liang said. “Stripe Financial Connections delivers just that.”

Stripe said the service is available to businesses in the US, which can connect to more than 90pc of US bank accounts from a set of 5,000 financial institutions. The company did not state when the service would be available to other countries.

Stripe, founded by Irish brothers Patrick and John Collison, has been rolling out more services that go beyond the payments processing it was originally built on, from tax tools to card issuing services.

Last month, the fintech giant appointed Microsoft veteran James Phillips as its new president of financial services, to help Stripe expand its portfolio and build out the platform.

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