Last week, details emerged about a request that Fintech Giant Stripe had filed for a US bank license.
There was a lot of fraud on X about whether this would say ribbons – already the largest highly rated Fintech in the world – would now add “bank” to the list of descriptions of what you do.
The short answer is: no.
What is true is that this marks the first time Stripe has applied for a bank license. But what may not be so clear is that the purpose of the license is a very close. This license does not mean that Fintech company will accept deposits. What it means is that if approved, the stripe will be allowed to process its payments in addition to having partners processing payments on its behalf.
A ribbon spokesman told Techcrunch: “In recent years, as the Stripe business has increased, we have expanded significantly the number of banks and other partners we work with. This requirement helps us to ensure that we have an even wider range of options to support our users – and meets the work we do directly with banking partners across the SH.BA. strategic. ”
A source known for the reasons for the mass to become its own bin said it gives the tape “an additional resistance to process payments” directly. Currently, its bin sponsors (or sponsorship banks) vary depending on geography.
In 2024, Wells Fargo (a former stripe’s former partner) suddenly emerged from the bin sponsorship business – where banks help fintechs use payment networks such as Visa and MasterCard. When banks do this, it leaves companies such as stripes at risk for interruption of service.
Being able to process its own payments, the ribbon is less dependent on its partners.
If approved, the stripe may have this bank license until the third quarter of 2025.
