Stripe buys Parafin, which has funded over $3 billion for small businesses

Stripe is adding a scaled small-business lending business to its payments and fintech stack by acquiring Parafin. The deal was announced September 30, with financial terms undisclosed, as embedded finance keeps consolidating around the platforms that already own customer workflows.

Parafin lets companies offer pre-approved financing under their own brands, and has funded more than $3 billion for over 60,000 small businesses. Its products now include flex and term loans, B2B pay-over-time products, and credit cards, with more than $100 million in annualized revenue run rate reported in December 2025.