These transactions include verifying accounts for payments and payouts; to check balances ahead of a payment being made to ensure there’s enough money there; to confirm account ownership. Details like these can in turn be used to help underwrite risk for loans; to track spending patterns and automatically pay bills; and more – in other words, financial data that’s useful or necessary to run financial transactions over other Stripe services like Stripe Connect, ACH payments or Stripe Capital-powered loans.
The service is going live first in the US, where Stripe said it will work with over 90% of all bank accounts. It will be charged on a pay-as-you-use basis – bank account verifications and account information will come at USD 1.50 per API call; account balance retrieval is 10 cents per API call – and bigger customers can buy on an enterprise contract.
Financial Connections is a timely tool for Stripe to launch. It’s part of the wave of new services that are creating a more programmatic approach to digital transactions and related financial services.
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