Stripe launches Stripe Capital to make instant loan offers to customers on its platform

Back in February Stripe announced a fundraise as well as a partnership with Funding Circle to get into lending. I mentioned then that Stripe not entering into lending themselves was an interesting move.

This implies that Stripe is now NOT (yet) getting into the lending business themselves. Unlike rival Square who has seen their share price run up massively thanks to the success of Square Capital, Stripe is actively taking steps to stay out of that business. Stripe has all the pieces they need to build what one can only imagine would be a solid lending business - a captive customer base, risk models, money movement capability and access to the capital markets - and yet are choosing to leave it (and the lucrative business that comes along with it) to others. That, coupled with the additional capital, seems too coincidental. Which gets us back to the start - Stripe knows something we don’t. It will be wise to pay attention.

As it turns out, they were biding their time, building their models, and getting the pieces in place to launch Stripe Captial which they did this week. In typical Stripe fashion it is clean and transparent in its documentation and execution, and I’m sure will make for a number of very happy customers. With Stripe Sessions taking place next week, I’m guessing we’re in for a slew of additional news from the company.


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