Stripe, the private financial infrastructure giant, has unveiled a new charge card program aimed at making it easier for businesses to access credit. The company’s commercial card issuing product, Stripe Issuing, will now offer the option to create and distribute virtual or physical charge cards, allowing customers to spend on credit instead of using funds from their accounts.
This expansion into charge cards opens up new possibilities for Stripe’s platform users to offer credit and financing capabilities to their customers. Stripe Issuing has been experiencing significant growth, with half a million transactions processed daily and more than 100 million cards issued in the US, UK, and EU.
Stripe’s charge card program benefits the company in two ways. It introduces a new revenue stream while offering additional financing options to customers with minimal operational costs. Platforms that utilize Stripe Connect can now white label products and provide embedded financial services such as financial accounts, working capital loans, and charge cards.
Several companies, including Ramp, Emburse, Karat, and Coast, are already utilizing Stripe’s charge card program in its beta version, available in the US. Stripe has plans to launch the program in the EU and the UK in the coming months. To ensure compliance and risk oversight, Stripe is partnering with startups and providing guidance throughout the process.
Stripe will generate revenue through interchange fees as customers’ volume grows and they spend more. Compliance fees will also be associated with the program. Interested parties can sign up for the new program, even if they are not existing Stripe users. As the program evolves, Stripe aims to offer clients more flexibility and control, potentially allowing them to do their own underwriting in the future.
