Stripe Partners With Fifth Third to Expand Embedded Payments And Acquires Processor Squeezy

Stripe Inc. has partnered with Newline by Fifth Third, a provider of embedded payments from Fifth Third Bank, to expand embedded financial services for Stripe’s platform users and their customers. Newline by Fifth Third’s API-based platform allows businesses to launch and scale payment, card, and deposit products directly with Fifth Third Bank, according to the bank.

The partnership is expected to enhance Stripe’s ability to deliver compliant embedded money movement services for clients that use its platform and their client’s end users, according to Stripe.

As part of the deal, Newline will power Stripe Treasury, which enables software platforms on Stripe to offer embedded financial accounts to their customers later this year. Newline is an API platform that enables enterprises to launch and expand payment, card, and deposit products directly with Fifth Third Bank.

Fifth Third’s commercial payments business processes $17 trillion in annual payments volume and serves 25% of the Fortune 100, according to the bank.

In addition to its deal with Fifth Third, Stripe has acquired Lemon Squeezy LLC, a Salt Lake City-based payment processor, for an undisclosed sum.

Lemon Squeezy’s software-as-a-service-based platform enables payments, subscriptions, global tax compliance, fraud prevention, multi-currency support, failed-payment recovery, and PayPal integration, according to the company.

Founded four years ago, Lemon Squeezy has been processing payments on Stripe since its inception, surpassing $1 million in annual recurring revenue within the first nine months of its public launch in 2020, the company says.

Stripe cofounder Patrick Collison welcomed Lemon Squeezy on the social-media platform X, formerly Twitter, adding that Stripe is “going to scale merchant-of-record selling in a big way.”

Stripe was valued at about $70 billion earlier this month when venture-capital firm Sequoia Capital offered to buy shares from Stripe’s investors, the company says. Stripe was valued at $95 billion in 2021, but saw that valuation slashed to $50 billion a year ago, according to the company. Since then, Stripe’s valuation has been steadily rising, the company adds.