#BaaS / Why Stripe’s banking-as-a-service play is a big deal

New platform, Treasury, aims to let a client embed the financial services into its own marketplace in a single integration…

San Francisco-based Stripe has been known over the years for building out “payments infrastructure for the internet.” Millions of companies… already use Stripe’s software and APIs to accept online payments, send payouts, and manage their businesses online.

Now the company wants to help companies of all sizes with their banking needs via Treasury, its new banking-as-a-service API… Stripe Treasury provides the modular components… to build a full-featured, scalable financial product for your customers.

[CEO and co-founder:] “From our earliest days, we’ve wanted to make all of financial services truly programmable. We’re now working with top banks to make that happen”… Treasury aims to let a client embed the financial services into its own marketplace in a single integration. This would allow the client’s customers to “hold funds, pay bills, earn interest, and manage cash flow” … Through the new platform users can create a bank account replacement, open loop wallet, use a payout card and use a product operations account.

… The fact that Stripe is deepening its partnership with Goldman Sachs is also notable. Goldman’s been going all out on fintech as of late –investing, partnering and acquiring left and right… [Stratchery’s Ben Thompson]: “Goldman Sachs doesn’t have the flexibility to offer a banking account to individual entrepreneurs.” But it can partner with companies like Stripe… “This, though, is the exact sort of problem platforms solve: they provide an abstraction layer that connects different sides of a market, even if those different sides have dramatically different needs and capabilities.”