To improve its embedded financial services, Stripe and Fifth Third Bank have teamed up to use Newline. This API platform enables companies to integrate embedded finance solutions, such as deposit, card, and payment products, directly with the bank.
This calculated action intends to use Newline’s technology to enable Stripe Treasury later this year, allowing software companies to provide their clients with embedded financial accounts.
According to Fifth Third Bank, this collaboration will strengthen Stripe’s capability to deliver compliant embedded money movement solutions to their platform clients and end-users. By integrating Newline, Stripe continues its trajectory as a leading provider of embedded solutions and financial infrastructure.
Last year, Fifth Third Bank acquired Rize Money, an embedded payments fintech, emphasizing the importance of embedded payments in its treasury management business. This acquisition underscored their commitment to advancing their embedded finance offerings and expanding their service capabilities.
The integration of Newline represents a significant step forward for Stripe, enhancing its ability to provide robust and compliant financial services. This development is particularly crucial as embedded finance continues to grow in popularity, offering businesses new ways to streamline their financial operations and improve customer experiences.
Stripe has acquired US-based startup Lemon Squeezy, which offers software tools for automating functions like sales tax compliance, payments, subscriptions, billing, license management, email marketing, and fraud prevention. This acquisition will enhance Stripe’s service portfolio, providing clients with comprehensive financial solutions and Newline integration.
The adoption of Newline and the acquisition of Lemon Squeezy highlight Stripe’s commitment to expanding its embedded finance capabilities. These strategic moves are designed to offer more seamless and integrated financial services, positioning Stripe as a leader in the fintech space.
Embedded finance is becoming a core component of modern financial services, allowing businesses to integrate financial products directly into their platforms. This integration simplifies processes, reduces costs, and enhances the user experience by providing a more cohesive financial ecosystem.
Stripe is partnering with Fifth Third Bank and expanding its embedded finance offerings to revolutionize financial operations. The company is leveraging advanced API platforms like Newline and acquiring fintech companies like Lemon Squeezy to provide exceptional solutions to clients.
The partnership between Stripe and Fifth Third Bank through Newline represents a significant advancement in the embedded finance sector. This collaboration will enhance Stripe’s ability to provide compliant and efficient financial services, further solidifying its position as a top provider in the fintech industry. As embedded finance continues to evolve, Stripe’s strategic initiatives will undoubtedly play a crucial role in shaping the future of financial services.
