Is Stripe Treasury ‘game over’ for banking as a service?

Payments infrastructure company Stripe recently launched Stripe Treasury, a banking as a service API that allows platforms to embed banking services with a few lines of code. 

Stripe has partnered up with Goldman Sachs, Evolve Bank and Trust, Citibank and Barclays to provide banking services for the new product. The API will enable merchants and vendors to make ACH and wire transfers through Stripe’s banking partners. Stripe clients also get access to interest-bearing bank accounts and faster access to payments. 

“Everything about running an online business has been transformed by technology, but business banking has largely been left behind,” said Karim Temsamani, head of banking and financial products at Stripe. “But we’re changing this, just like we set out to change payments a decade ago. Offering a user-centric banking experience should be as easy as spinning up a virtual server — that’s what we’re starting to accomplish at Stripe with our bank partner network.”

The move is emblematic of a larger trend of embedded finance that is layering in banking capabilities within companies in any industry and integrating financial services within platforms already used by customers. Goldman Sachs, one of Stripe’s banking partners, recently launched its own banking as a service offering for transaction banking, TxB. 

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“Together, Stripe and Goldman Sachs are focused on relieving the frustrations internet businesses find in making banking work for them,” said Hari Moorthy, Goldman Sachs’ global head of transaction banking. “The millions of ambitious, fast-growing businesses in the Stripe ecosystem will soon discover a dramatically improved end-to-end digital banking experience.”

Canadian e-commerce giant Shopify will partner with Stripe Treasury to build out Shopify Balance. Shopify Balance, part of the e-commerce platform’s fintech strategy, allows merchants to directly open bank accounts within Shopify. Shopify merchants will have seamless access to revenue which can be easily spent or transferred. 

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