Stripe, a financial platform for businesses, has unveiled a new payment card offering via Stripe Issuing, its business card service.
Fintechs and platforms now have the capability to give out virtual or physical charge cards to their customers. With these cards, customers can make purchases on credit instead of having to pay with the money in their account. This offers new money-making opportunities for platforms, as well as more financing options for their customers.
Head of product for BaaS at Stripe, Denise Ho, said:
Whether a small business is just starting out or looking to expand, access to capital can make all the difference. Our new charge card allows fintechs and SaaS platforms to provide access to a reliable source of credit for the many small businesses they work with.
A recent study showed that most small businesses worry about having enough money to grow. Special software platforms offer financial help. These programs provide cash to customers and can offer charge cards too. Building something like this is complicated though. Platforms need to keep track of payments, meet banking rules, and more.
Issuing’s charge card program simplifies the process of offering credit, eliminating the need for additional operational costs. It offers the tools needed to make a charge cards program work, like fund transfer, network access, printing, and integration APIs, as well as regulation, bank agreements, and tracking services.
Benefits of Using Stripe and Card Payments for Businesses
Businesses have the capability to set individual credit restrictions and payment arrangements, including supple weekly, monthly, or fixed-day payment choices. When businesses need to obtain payments from their customers, they can use Stripe’s collection of services, such as Invoicing and Checkout that don’t need coding and can be integrated.
Charge cards give platforms flexible funding options. When a card is used for buying something, the platform must pay for the transaction right away. This means platforms must keep a lot of cash available. With Issuing, platforms can send funds after the sale is settled, which reduces the amount of money they need to keep on hand and can use for other things.
Four companies – Ramp, Emburse, Karat, and Coast – are trying out a new Charge Card program. It’s only available in the U.S. right now, but plans are in the works to expand it to Europe and the UK.
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