Parafin

Payments company Stripe has agreed to acquire Parafin, a lender focused on small businesses. The deal reflects a broader push by Stripe and its competitors to expand beyond payments into lending and other services for small businesses, with new AI-powered tools being used to chase that growing market.

Payments company Stripe is buying Parafin, a fintech that provides credit and financial services to small businesses through e-commerce platforms. The acquisition is intended to strengthen Stripe's business credit offering, expanding lending products for merchants on its platform. Financial terms of the deal were not disclosed in initial reports, and the announcement adds to a wave of consolidation in the fintech sector.

Stripe has acquired Parafin, a fintech company that provides embedded lending to platforms including DoorDash and Gusto. The deal brings Parafin's merchant financing infrastructure in-house at Stripe, strengthening its ability to offer loans and cash advances to businesses using its payments services. The acquisition underscores Stripe's push to expand beyond payments into financial services for online merchants.