Dive Brief:

• Branch, a Tampa company that provides earned wage access services, has integrated with Stripe to become a new embedded digital wallet provider for worker payouts on that platform, according to a Wednesday press release.
• With the integration, companies can transfer funds to workers using a customizable digital wallet and branded debit cards. Workers can also access cashback rewards via the cards, the announcement said.
• The digital wallet doesn’t require upfront funding from companies, and using the service involves “minimal API lift,” per the press release.

Dive Insight:

Branch used digital wallets prior to its partnership with Stripe. In an August interview, Branch CEO and founder Atif Siddiqi noted that digital wallets are central to its services, a payment method “where we can send money any day, day or night, for free.”

In its Wednesday press release, Branch touted the new Stripe integration as supporting its mission to aid company clients in paying contractors, drivers, marketplace sellers or “frontline teams.” 

The company contended the new tool is part of an instant payout offering that acts as a driver of retention and engagement for employers. 

“This integration allows platforms to manage complex payouts through Branch’s digital wallet while providing workers with branded cards,” Sateesh Srinivasan, Stripe’s product and business lead for money management, said in the press release. “Platforms can give contractors faster access to their earnings while simplifying how payouts and spending are managed in one system.”

Last month, the Office of the Comptroller of the Currency granted a Stripe subsidiary, Bridge, conditional approval for a national trust bank charter, enabling the company to issue stablecoins, custody digital assets and handle reserves with OCC oversight. 

That same month, the company embarked on a tender offer to buy the shares of its current and former employees, valuing Stripe at $159 billion. Industry consultants and investors perceived the share purchase as a sign that Stripe is in no hurry to become a public company.