See how you can use Stripe to offer payments and financial services through your platform.
Watch this session to learn about:
- Offering payments-as-a-service for the businesses on your platform to add value for customers and establish a new revenue stream
- How platforms can use Stripe Connect to offer capabilities like invoicing and in-person payments
- Embedding financial services with Stripe’s BaaS suite: Treasury for embedded account balances, Issuing for spend cards, and Capital for lending—which can drive growth and increase customer value
Narrator: Hi, thanks for tuning in. Let’s look at the way Stripe enables SaaS businesses to offer payments-as-a-service. There are many reasons a software platform might want to offer payments-as-a-service: It’s a great way for the platform to offer its customers more value, and it can also become a major revenue stream.
But offering payments is complex, and requires platforms to take on significant costs, resourcing commitments, and regulatory and compliance burdens. That’s why we offer Stripe Connect to help platforms with merchant onboarding, risk-based identity verification, and global payments acceptance and payouts, as well as the ability to monetize payments processing.
Platforms like Shopify and Xero already use Stripe to offer payments-as-a-service, so let’s see how it works. This is Homebox, our demo software company that provides scheduling, customer service, billing software, and more. And here’s one of their customers, All Star Plumbing. They want to use Homebox to issue invoices and collect payments from their clients.
Let’s see the signup process. First, they choose a plan to get started. There, let’s see how it works. They’ll go through the onboarding flow to get set up. Stripe’s onboarding flows are conversion optimized to get businesses onboarded quickly and easily.
And once it’s complete, All Star will be able to manage their payments directly within Homebox. Say they need to issue an invoice to a homeowner whose water main they’ve just repaired. They create a digital invoice here in the Homebox dashboard and send it out via email.
This is powered by Stripe Invoicing. And just like all our payments interfaces, Stripe invoices are conversion optimized. 70% of Stripe invoices are paid within 24 hours. Nice, All Star received the payment in its Homebox account. Typically, All Star might transfer the funds from Homebox into its own bank account, but if the revenue is already in Homebox it would be convenient to store, and spend its funds all in one place.
Homebox actually enables a money management account, so All Star can store its revenue via the platform in an FDIC insurance–eligible account powered by Stripe Treasury. And hey, why stop there? Homebox also offers a card with the account powered by Stripe Issuing. Now, the All Star owner can use their Homebox funds to buy parts, pay for gas between home visits, and earn rewards with every swipe.
And because Homebox enabled Stripe Issuing for its users, it will earn a percentage of every purchase All Star makes; win-win. Now let’s say All Star wants to expand. To do that they’re going to need a loan. As a small business without a long track record it might be tough for them to get financing from a traditional bank. Luckily, Homebox facilitates the offer of small business loans through its platform, subject to approval powered by Stripe Capital.
Because Homebox and Stripe have real-time data about All Star’s revenue and business history, Homebox can easily help Stripe’s bank partner check All Star’s eligibility for a loan that can be repaid automatically from All Star’s future earnings over time. From All Star’s perspective, they’re able to apply for financing within Homebox, and have funds deposited directly into their account to spend almost immediately. And that’s not all, there are many other Stripe products, like Stripe Billing and Stripe Terminal, that companies like Homebox can offer their customers.
So that’s how platforms, like Homebox, can use Stripe to offer embedded payments and financial services to differentiate their platforms, attract and retain businesses, like All Star, and generate new revenue streams.
We have solutions for other use cases too, like SaaS revenue management, ecommerce, and multi-sided marketplaces. I hope you check them out.
Visit stripe.com to learn more, and thanks for watching.