Small-Business Payments Disruptors

How SMB Payments Providers, Such as Square and Stripe, Are Evolving Into Merchants’ One-Stop Shop for Financial Services

About This Report
Service providers are using their existing relationships with small businesses to move into financial services, taking on financial institutions by offering solutions like lending and bank accounts that are powered by partnerships, digital banking developments, and even in-house banks.

Executive Summary

Service providers focused on areas like payments, ecommerce, and lending are challenging the financial services sector for its longtime relationships with small businesses. The providers are looking to use their own relationships with those businesses, their practices of tailoring solutions, and their growing financial capabilities as a profitable way to attract small-business clients.


  1. Why are payments service providers moving into financial services, and what industry trends are paving the way for them?
  2. Which major US service providers are making the move, what do they offer, and how are they piggybacking on their existing businesses to expand into the financial space?
  3. How will the major US players fare, and which other service providers might make their own financial pushes in the years to come?

WHAT’S IN THIS REPORT? In this report, we look at why service providers are moving into financial services, and what approach the top providers are taking. First, we examine how the popularity of service providers and the digitization of financial services are enabling firms to break into this space. Then we profile five major service providers, laying out their offerings and strategies in the space and what the future may hold for their financial initiatives.

KEY STAT: Square estimated that its US seller ecosystem has a market opportunity worth $86 billion as of September 2020, and that financial services, along with its lending operations, account for $17 billion of that value.

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    Table of Contents

    1. Executive Summary
    2. Key Points
    3. Introduction
    1. Trends that Enable Payments Disruptors to Take On Financial Services
    2. 5 Major Payments Disruptors
    3. Insider Intelligence Interviews
    1. Read Next
    2. Sources
    3. Media Gallery

    Interviewed for This Report

    Jeff Dickerson
    Head of Clover
    Interviewed April 5, 2021
    Kathryn Petralia
    Interviewed March 4, 2021
    Luke Voiles
    Vice President and Business Leader, QuickBooks Capital
    Interviewed March 8, 2021

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    Daniel Keyes


    Daniel Decea
    Researcher, Financial Services
    Reuben Loewy
    David Morris
    Jaime Toplin

    "Behind the Numbers" Podcast