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Fintech news roundup: Stripe acquires Okay, expands issuing product
This week in fintech news, Stripe made headlines with two announcements: its acquisition of Okay, a startup that provides low-code analytics software to help engineering leaders monitor team performance, and its expansion of its issuing product into credit. The move to acquire Okay is seen as an effort to increase engineering effectiveness to help Stripe move faster and be more productive while competing in a competitive space. The expansion into credit allows Stripe to offer new financing capabilities to its customers with little additional operational cost and provides a new revenue stream.
Sections:
1. Stripe acquires Okay: A closer look
2. Stripe expands Issuing into credit
3. Spend management update
4. City Spotlight: Atlanta
Stripe acquiring Okay: What it means
Stripe has acquired Okay, a startup that developed low-code analytics software to help engineering leaders better understand how their teams are performing. The move is seen as an effort to improve engineering effectiveness within Stripe and help it compete in a crowded space. While the terms of the deal were not disclosed, Okay had raised $6.6 million from investors such as Sequoia Capital and Kleiner Perkins, and had seven employees. Okay’s customers included Stripe competitor Plaid, though it will no longer serve outside clients now that it has been acquired by Stripe. By acquiring Okay, Stripe can build performance dashboards to help gauge how its teams are performing, which could result in faster productivity and competitiveness in the payments space.
Stripe expands Issuing into credit
Stripe has announced that it will expand its issuing product into credit, giving customers the ability to create and distribute virtual or physical charge cards for credit purchases. This move not only provides Stripe with a new revenue stream, but also offers new financing capabilities to their customers with little additional operational cost, according to Denise Ho, Stripe’s head of product for BaaS. Stripe’s Issuing product is built on top of Connect, which enables customers to avoid KYC on thousands of businesses on their platform. When businesses need to pay back credit usage, they can use Stripe Invoicing and Stripe Payments to move money from the payments balance into Issuing. The move will be particularly helpful to companies like Ramp and Karat, which can now offer credit to their clients at a time when credit may not be as easy to come by.
Spend management update
Brex and Mesh Payments provided updates on their spend management platforms this week, with Brex reporting that two of its products, Empower and Brex business accounts, each achieved $100 million in ARR. Mesh Payments also announced an expansion to support global multinational businesses operating in Europe, the United Kingdom and Asia in local currencies, as the company saw payments volume and revenue climb threefold compared to the first half of 2022. While some existing customers may spend less, Mesh continues to sign on new ones, including a Fortune 100 company. The space still has a long way to go, with over 90% of companies attending a Gartner event still using Concur.
City Spotlight: Atlanta
On June 7, is focusing on Atlanta for its virtual City Spotlight. Programming includes the mayor, Andre Dickens, and early-stage Atlanta-based founders can apply to pitch for a chance to win a free booth at Disrupt.
FAQ:
What is Stripe?
Stripe is a payments and financial services platform that allows businesses to accept online payments and manage their finances. It was founded in 2010 and has since become one of the world’s highest-valued private companies.
What did Stripe acquire?
Stripe acquired Okay, a startup that developed low-code analytics software to help engineering leaders better understand how their teams are performing. Okay’s technology will help improve engineering effectiveness within Stripe and allow it to compete more effectively in a crowded space.
What is Stripe’s issuing product?
Stripe’s issuing product is a service that allows businesses to create and distribute virtual or physical charge cards for their customers. The recent expansion of this product into credit allows Stripe to offer new financing capabilities to their customers with minimal additional operational costs.
What is spend management?
Spend management is a process that businesses use to track and control their expenses. Spend management software allows companies to monitor spending and ensure that resources are being used efficiently.
What is Brex?
Brex is a fintech company that provides businesses with a range of financial services, including cash management accounts and spend management tools. Brex has achieved $100 million in ARR with its Empower and Brex business accounts products.
What is Mesh Payments?
Mesh Payments is a fintech company that provides spend management and payment solutions to mid-market and enterprise companies. The company recently announced an expansion that now supports global multinational businesses operating in Europe, the United Kingdom and Asia in local currencies.
When is City Spotlight focusing on Atlanta?
is focusing on Atlanta for its virtual City Spotlight on June 7th. Programming includes the mayor, Andre Dickens, and early-stage Atlanta-based founders can apply to pitch for a chance to win a free booth at Disrupt.
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