Stripe agrees to acquire small business lender Parafin
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With a deal to buy PayPal apparently off the table, Stripe is improving its ability to offer credit to small businesses and entice these customers away from banks. Stripe has agreed to acquire Parafin, a company that enables platforms such as DoorDash, Guston, Jobber and Mindbody to offer credit to their small-business clients. Terms of the deal, which is expected to close in the "coming months," were not disclosed; and Stripe did not return a request for comment. "Platforms power millions of small businesses throughout the world and are central to Stripe's mission," said Neetika Bansal, business lead at Stripe, in a release. "[The Parafin team] brings acute expertise and leadership in credit, risk and embedded financial products. Together, we'll be able to offer a wider range of credit products to a larger ecosystem and increase credit access for high-growth businesses." Stripe earlier this year was reportedly ready to team with Advent Capital to acquire PayPal for $53 billion, an acquisition that would bring millions of consumers to Stripe. PayPal's board balked at the price, while Stripe made a separate deal to buy AI company OpenRouter. OpenRouter and Parafin would improve Stripe's ability to combine AI and lending to grab a large share of clients' business. More than 18,000 platforms use Stripe as a financial services portal for the small businesses that access the...
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