This collaboration, announced Wednesday (March 25), is designed to make it easier for companies to launch a digital wallet and debit card via Stripe Issuing for worker payouts.
“Stripe has built one of the most powerful ecosystems for platforms and marketplaces, and its decision to integrate Branch into Stripe Connect underscores the rising demand for digital wallets and flexible payout options,” Atif Siddiqi, founder and CEO of Branch, said in a news release provided to PYMNTS.
“As the embedded wallet option within Stripe Connect, Branch enables businesses to elevate their payout experiences seamlessly while delivering meaningful value to workers.”
According to the release, the digital wallet automates instant payouts and offers fee-free banking options and cash-back rewards “that support workers’ everyday needs.”
The companies say this can help businesses boost engagement and retention, without adding support costs. As part of Stripe Connect’s infrastructure, the Branch-powered digital wallet requires minimal API lift and no pre-funding, with Stripe Connect handling the flow of funds.
“This integration allows platforms to manage complex payouts through Branch’s digital wallet while providing workers with branded cards powered by Stripe Issuing,” said Sateesh Srinivasan, Stripe’s product and business lead for money management.
“Platforms can give contractors faster access to their earnings while simplifying how payouts and spending are managed in one system.”
PYMNTS spoke earlier this month with Matt Peterson, Branch’s CFO, about the paycheck-to-paycheck phenomenon, which he said is indicative of a problem that can’t be explained simply by failures in personal finance.
“We all see the stats of 6 to 7 out of 10 Americans living paycheck to paycheck,” he said. “I find it really difficult to attribute that solely to poor budgeting.”
Peterson argued that high-interest credit card debt is a sign of bad timing, not bad behavior. People borrow against their next paycheck at 20-plus percent interest to manage expenses they’ve already earned the money to pay. This liquidity gap costs Americans billions in interest every year.
Branch’s solution, the report said, is to offer workers access to what they’ve already earned, before the actual pay date.
“We’re helping alleviate the pressure to take on high-interest credit card debt,” Peterson said, “because you’re tapping into funds that [the worker] has already earned,” adding that “there’s a secular trend here where workers don’t want to, and they shouldn’t need to, wait two to three weeks to get paid,” he added.
