Stripe is stepping up its efforts in the UK, firstly by launching a new suite of payments products in the country and secondly by opening up a new office in London.
Open Banking will be a core area for Stripe’s British ambitions. The firm, founded by Irish brothers John and Patrick Collisson and dual-headquartered in Dublin and San Francisco, will launch its Open Banking-powered Pay by Bank platform in the UK.
The firm aims to build on its already extensive presence in the UK, its second-largest market after the US. Existing clients for its Open Banking services include car retailer Cinch and insurance brokerage AJ Gallagher.
Eyeing a broader reach, small businesses are a target market for the company’s expanded product suite. Stripe believes that SMEs will see the benefit in its products for accessing more flexible financing to support investment and growth plans.
The company has cited data showing that just 50% of bank loans for small businesses are approved in the UK. Stripe Capital, the company’s flexible payments access programme, has been earmarked as a key solution to this.
John Collison, Co-Founder and President at Stripe, said: “UK businesses are inventing and building, but getting access to capital at the right time is a rate limiter on their growth.
“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.”
Stripe’s expansion in the UK comes at a time of global growth for the company, but also at a time when the British government is looking to significantly invest in the country’s financial and fintech markets.
This has provided a good opportunity for Stripe. For example, the company notes that its existing UK users include over half of the country’s AI startups. This is significant as the UK government is actively funding AI development, and Stripe itself has noted that AI startups are becoming major investment magnets across multiple countries.
In addition to AI firms, Stripe’s UK customers include Monzo – one of the country’s leading neobanks which is also experiencing rapid growth – as well as Octopus Energy, ITV, River Island, Nando’s and Hargreaves Lansdown.
The UK’s payments infrastructure will also play a key role in Stripe’s expansion plans, with the firm in particular leveraging the Faster Payments Scheme. As the UK moves forward with planned regulatory development of Open Banking, this too could be significant for Stripe’s growth.
Finally, the firm plans to continue investing in its UK business, headquartered from its new office close to the City of London. Stripe will host engineering, sales, partnerships and operations teams at the new location, and hopes to capitalise on its proximity to some of the biggest stakeholders in not just British but international financial, banking and technology.
“The UK’s talent, infrastructure, and financial centre make it an excellent place to build Stripe from, but that’s only half the story,” Collison concluded.
“We’re also seeing huge growth amongst UK businesses who are excited to modernise their financial systems and expand globally. That’s what gives us the conviction that now is the time to double down in the UK.”
