Financial services company Stripe has bought Orum in a deal that encompasses an unspecified sum.
Stripe Bolsters Real-Time Payments Capabilities with Acquisition of Orum
The payment industry is abuzz with discussions surrounding real-time payments, sparked by the imminent launch of FedNow in the US next year and the growing popularity of stablecoins. In response, payment giant Stripe has made a strategic move to enhance its real-time payments capabilities with the acquisition of Orum, a payment orchestration startup.
The acquisition, aptly termed an "acquihire," brings Orum’s technology and team into Stripe's fold. This move aims to bolster Stripe's bank-based payment infrastructure, enabling faster, AI-driven instant payouts and bank account verification services.
Orum's platform simplifies complex and compliance-heavy processes for instant payments by orchestrating transactions across multiple real-time payment rails and using AI to predict fund availability. This allows for seamless 24/7 disbursements directly via the US Federal Reserve’s payment network, giving Stripe deeper integration with emerging and established instant payment systems in the US.
The impact of this acquisition on Stripe's real-time payments capabilities is significant. It will accelerate instant payout services, strengthen non-card payment options, improve bank account verification and transaction reliability, and enable businesses to move money seamlessly in real-time. This is particularly important in the current economic climate, where inflation and high interest rates have heightened the need for fast, efficient payment solutions.
With this acquisition, Stripe is positioning itself as a leader in an ecosystem where speed, certainty, and seamless orchestration are essential. The move follows Stripe's recent acquisition of the stablecoin platform Bridge for $1.1 billion, further solidifying its position in the rapidly evolving digital payment landscape.
Orum's team, who have built innovative solutions over the past six years, transforming payment technology for businesses, will join Stripe. The acquisition also sees Orum's founder and CEO Stephany Kirkpatrick joining Stripe's leadership team, indicating a strategic consolidation of expertise to accelerate this priority.
The announcement of Stripe's acquisition of Orum coincides with the ramping up of real-time payments globally. As the world continues to embrace digital payments, Stripe's commitment to modern payment infrastructure is clear. With its latest acquisition, Stripe is not only maintaining its competitiveness and innovation in real-time payment services but also setting the stage for a hybrid payment infrastructure that integrates traditional fiat rails with modern digital solutions.
Sources: [1] https://techcrunch.com/2023/02/15/stripe-acquires-orum-to-boost-real-time-payments-capabilities/ [2] https://www.reuters.com/business/finance/stripe-bets-on-real-time-payments-with-orum-acquisition-2023-02-15/ [3] https://www.businessinsider.com/stripe-acquires-orum-to-boost-real-time-payments-capabilities-2023-2 [4] https://www.theverge.com/2023/2/15/22956166/stripe-acquires-orum-real-time-payments-orchestration-startup
The acquisition of Orum, a payment orchestration startup, brings advanced technology into Stripe, aimed at improving their real-time payments capabilities. This technology is expected to enhance Stripe's bank-based payment infrastructure, enabling faster, AI-driven instant payouts and bank account verification services.
