Stripe, the world's most valuable private fintech company, is getting into lending

in their loan portfolios in the second quarter. E-commerce giant Amazon offers similar products to merchants on its payments network through "Amazon Lending," an invitation-only program with loans as low as $1,000.

Stripe said the reliance on tech allows them to issue loans quickly. According to the company, there's no "lengthy application, eligibility is determined quickly, funds hit a user's Stripe account the next day, and businesses can repay as they earn." Still, some have flagged inherent risks in lending to small start-ups. Karen Mills, a senior fellow at Harvard Business School and former head of the U.S. Small Business Administration during the Obama years, told CNBC earlier this year that an inevitable downturn in the economy could hit these companies the hardest.

Stripe was founded in 2010 by Irish brothers Patrick and John Collison. CEO Patrick Collison announced on Twitter earlier this year that former Google Cloud CEO Diane Greene was being added to the board.

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The president of $20 billion Stripe explains the three-pronged master plan as it opens a new service for small business loansStripe is perhaps best known as a payments processor, but it's getting into the moneylending business with Stripe Capital.
Source: BusinessInsider - 🏆 729. / 51 Read more »

The president of $20 billion Stripe explains the three-pronged master plan as it opens a new service for small business loansStripe is perhaps best known as a payments processor, but it's getting into the moneylending business with Stripe Capital.
Source: BusinessInsider - 🏆 729. / 51 Read more »