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TEXXR

Chronicles

The story behind the story

days · browse · Enter similar · o open

Stripe launches Financial Connections to let its customers pull their users' banking data directly, debuting first in the US for $0.10 to $1.50 per API call

Ingrid Lunden / TechCrunch :

TechCrunch Ingrid Lunden

Context & Ripple Effects

Stripe had already moved beyond payment acceptance with Stripe Capital’s sales-repaid advances and later extended that financing capability to online platforms. Financial Connections adds a separate bank-data interface for Stripe customers, broadening the set of financial workflows available through its APIs.

The related coverage then shows Stripe linking transaction records to customers’ Snowflake and Redshift environments through Data Pipeline, reinforcing a shift from processing payments toward making financial data usable in customers’ own systems.

First-order effects

  • Stripe’s US customers gain a metered API for retrieving their users’ banking data, with per-call costs ranging from $0.10 to $1.50.
  • Stripe adds a new usage-priced product line alongside payments, accounts, and financing APIs.

Second-order effects

  • Customers evaluating bank-data integrations must weigh Financial Connections’ per-call pricing against the cost and complexity of maintaining separate data connections.
  • Financial Connections gives Stripe a bank-data entry point that can sit alongside the transaction-data workflows it later exposed through Data Pipeline.

Third-order effects

  • If Stripe continues joining data access, payments, financing, and data-export tools, its competitive position increasingly rests on the breadth of its financial developer stack rather than payment processing alone.
  • The later move to make some products available to businesses using other payment providers signals an ecosystem strategy in which Stripe’s APIs can remain relevant even when it is not the primary payments provider.

The trend: Stripe is broadening from a payments processor into a usage-priced financial-data and infrastructure platform for developers.

Discussion

  • @zachperret Zachary Perret on x
    @jay_ssh Wow! Jay, you took interviews with Plaid & asked probing questions multiple times over the past few years, and your team sent repeated RFP's (under NDA!) to us asking for tons of detailed data. I wish y'all the best with these products, but surprising to see the methods.
  • @pitdesi Sheel Mohnot on x
    Stripe launched a Plaid competitor today. Plaid CEO @zachperret says the guy who runs it took multiple interviews with Plaid and asked probing questions in interviews. https://twitter.com/...
  • @jay_ssh Jay Shah on x
    We're launching Financial Connections today, enabling businesses and their customers to safely share their financial data. Businesses can go directly to Stripe to access a privacy-first authentication flow and our new data API. https://stripe.com/...
  • @disruptepreneur Jeremy Gardner on x
    Lots of Silicon Valley folks enjoyed poking fun at @theryanking for his exposés on the SV “Mob”, but as a gambling man, I'd bet Ryan has the last laugh here. His willingness to call out monopolistic bullshit will likely continue to catalyze others. https://twitter.com/...
  • @jimmarous Jim Marous on x
    There is some very interesting dialogue between @zachperret from @Plaid and @jay_ssh from @stripe on the ethical nature of using competitive insights for economic gain. Read the different strings of conversations as competition gets intense in #fintech and #banking. @leimer https…
  • @zachtratar Zach Tratar on x
    I'll just say this, confidently: people disparaging Stripe and some of the *real people* who work there have no idea what they're talking about. Over 3.5 years, I never once heard conversations on how we could copy/trick competition. We often told them our plans far in advance.
  • @cjc Cristina Cordova on x
    It's clear that Stripe is working with MX and Finicity (Plaid competitors) behind the scenes for their new product. That suggests that there really was a bake off between Plaid and their competitors. The bake off just didn't land in Plaid's favor. https://support.stripe.com/... h…
  • @jmover Justin M. Overdorff on x
    There is a non-zero chance Stripe follows a similar playbook to their Identity product and takes this Bank Connections infra and exposes it externally to its customers. I'd even argue they could make it completely free... very fintech that sits on a bank auth API will take note h…
  • @typicalvc @typicalvc on x
    Plaid's founder is upset Stripe copied them. Both product designs are similar to begin with. But by adding new verticals, stripe becomes plaid. https://twitter.com/... https://twitter.com/...
  • @gergelyorosz Gergely Orosz on x
    Talking with FinTech founders, PMs at a competitor interviewing only to gather information, then launch a competitor is shockingly common. Heard stories of Stripe doing this, but others as well. Shows the market is not big enough for all players FinTech. Execution >> innovation. …
  • @bigbrutha_ @bigbrutha_ on x
    Paystack launching same soon? or another paystack indirect acquisition Stripe flexes its fintech muscle with Financial Connections to pull banking data automatically | TechCrunch https://techcrunch.com/...
  • @katie_roof Katie Roof on x
    Drama between Silicon Valley fintech darlings Plaid and Stripe https://twitter.com/...
  • @alanmeaney Alan Meaney on x
    So Stripe, I know we love them in Ireland, but this deserves highlighting. Very... dare I say it, mob like behaviour. https://twitter.com/...
  • @triketora Tracy Chou on x
    stripe pm getting CALLED OUT by plaid ceo, woof https://twitter.com/...
  • @jmover Justin M. Overdorff on x
    Very smart and strategic move by Stripe that has implications across the fintech infra landscape. “Stripe launching Financial Connections to pull banking data automatically” https://techcrunch.com/...
  • @spakhm Slava Akhmechet on x
    I worked with Jay. He's a good guy. One of Stripe's values was “the front page test”. If something would embarrass us if it were to end up on NYT front page, we didn't do it. These stories frankly surprise me. Stripe was one of the most ethical orgs I've seen. Doubt that changed.…
  • @alex @alex on x
    Stripe v. Plaid? https://techcrunch.com/...