Stripe Goes into Lending; Flutterwave, Paystack Take Note
Stripe is looking for growth and to drive that it wants to fund companies in its ecosystem. So, the U.S. paytech firm will be making loans to companies that use Stripe. I think this is an easy matter since Stripe has data to drive this lending. Companies like Flutterwave and Paystack in Nigeria must take note of this model and see how they can enable disintermediation of the banking institution by providing capital to their more promising platform companies. You wager where you eat.
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The $22.5 billion payments company announced the launch Stripe Capital, which will offer loans to online companies in an effort to help grow their businesses.
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Stripe, whose rivals including Jack Dorsey’s Square and Netherlands-based Adyen, makes software that allows businesses to accept payments over the internet. Growth in companies using their platform could eventually help Stripe’s bottom line.
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The start-up has benefited from growth in online payments, attracting investments from Elon Musk, Peter Thiel, and Google’s late-stage venture arm Capital G, among others.