With the addition of charge cards, Stripe Issuing users can create and distribute virtual or physical charge cards that allow their customers to use credit costs rather than spending the funds in their accounts
Stripe, a fintech platform for businesses, on Thursday (June 1) announced a new charge card program for Stripe Issuing, the company’s commercial card issuing product.
The new option enables partnering fintech startups and platforms to offer expense cards with flexible credit options. Meanwhile, the end customers get the opportunity to spend credit costs rather than the funds in their prepaid accounts.
Expectedly, the program will provide new revenue streams for participating platforms and offer new financing capabilities to customers. That is particularly useful for small businesses. Whether just starting or looking to expand, they require safe and easy access to capital. That’s where charge cards can make all the difference.
Stripe Issuing was launched in 2018. Since that time, platforms and fintechs have used it to create more than 100 million cards in the US, the UK, and the EU. Up until the present day, Stripe-issued cards were linked exclusively to pre-funded accounts.
The addition of charge cards will allow platforms to offer their users access to credit. Cardholders will be able to access spare funds up to their credit limit. However, they should pay back the outstanding balance at the end of each month.
At the same time, businesses can customize the default solution, setting individual credit limits and repayment schedules, including flexible weekly, monthly, or set-day repayment options. To collect repayments, Business clients can use Stripe’s suite of products, including no-code and embeddable options like Invoicing and Checkout.
For the fintechs that utilize the service, accessing new financing capabilities for their clients is simple. Stripe Issuing provides all the core components of a charge card program, e.g. funds flows, network connections, printing, and integration APIs. Besides, the company streamlines all the necessary compliance, bank partnerships, and ledgering routine, making the transition seamless.
Last month, Stripe and WhatsApp launched an in-chat payment feature that allows Singapore businesses to accept payments directly in WhatsApp chats.