Dive Brief:
- The global payments company Stripe is collaborating with Fifth Third Bank to offer more embedded financial services, according to a Monday press release.
- The payments company will use Fifth Third's embedded payments service to help Stripe embed financial accounts into their own offerings, the release from the Cincinnati-base bank said.
- Embedded finance refers to financial services that are seamlessly integrated into a platform or service, like a smartphone app or an e-commerce site.
Dive Insight:
Embedded finance is becoming a crucial part of the payments industry's playbook, as more non-financial institutions look to offer financial products on their apps and websites.
The ride sharing company Uber, for example, automatically charges a credit card on file when a customer hails a driver and receives a lift, without the customer having to enter payment information.
The market for embedded finance across the globe will grow to more than twice its current size by 2028, rising from $92 billion to $228 billion, the research firm Juniper Research predicts.
Stripe provides payment processing software to e-commerce sites and mobile apps. Through the recently announced partnership, the company hopes to expand the slate of embedded financial products it can offer the merchants it works with.
"Modern businesses want intuitive digital financial services embedded within the software platforms they use daily," Fifth Third said in the release.
Stripe customers will have the capacity to embed payment and deposit products that link directly to Fifth Third accounts, the bank said in the news release.
Neetika Bansal, head of payments for Stripe, which has dual headquarters in Dublin and San Francisco, offered a comment about the new tie via LinkedIn.
"This service helps software platforms offer embedded financial services to their business customers,” she said in a LinkedIn post. “Modern businesses want easy-to-use and accessible financial services within the software they use daily.”
