Stripe Partners with Kabbage to Extend Funding to Online Businesses
Aug. 22, 2013
Online payments provider Stripe has been busy in recent months. In the last two weeks alone, The San Francisco-based e-commerce processor recently was chosen to power the payments functionality incorporated into the Shopify e-commerce platform and it announced it has rolled out its service in the U.K . This week, the company unveiled a partnership with online lender Kabbage that will make it easier to underwrite smaller online merchants.
Under the agreement, Stripe customers can get loans from Atlanta-based Kabbage based exclusively on their Stripe payment processing data. The companies said the underwriting process, a ponderous one when dealing with traditional business loans from banks, happens instantly when backed by the business data already gathered by Stripe.
“Kabbage is using Stripe data in a truly creative way, looking at a seller’s business history and making an instant financing decision,” said John Collison, co-founder and president of Stripe. “There’s no manual work required by the seller—simply connect Kabbage to a Stripe account in seconds, and receive the financing necessary to grow a business. It’s quite magical.”