Stripe, an online payment processing company, and Celonis, a German-based provider of an execution management system that helps firms run their business processes, have announced an agreement today to leverage each other's technology as part of its efforts to enhance value and simplification for their clients.
Today only around 14% of worldwide commerce is conducted online. Out of that figure, millions of companies from the world’s largest enterprises to new startups use Stripe to transform their business and grow their revenue output. According to the announcement, Celonis’ Execution Management System (EMS) is expected to help Stripe to improve its user onboarding processes to make it more efficient and faster for businesses that use the Stripe platform to access the global online economy.
In turn, Stripe has agreed to power payments for Celonis’ clients, moving to a usage-based paid subscription model. The online payment processing company will, therefore, enable Celonis to rapidly scale, simplify and monetize the Celonis Marketplace for existing and new clients. Celonis plans to build an advisory service marketplace to develop a long-term partnership with its customers. Thus, the company will use Stripe Connect, an online marketplace payment, to more effectively and efficiently onboard third parties from across the world and bring more value to its customers.
Eileen O’Mara, the Head of EMEA Revenue & Growth at Stripe, stated about the partnership: “We are delighted to partner with Celonis. As a company powering some of the largest and most ambitious businesses globally, state-of-the-art customer experience and efficiency is business critical for Stripe.”
Meanwhile, Miguel Milano, the Co-Owner and Chief Revenue Officer at Celonis, commented about the deal: “Millions of businesses, of all sizes, use Stripe’s software for a smoother payment process. As it is, many businesses approach payments in ways still so archaic and monolithic. We’re pleased to partner with Stripe to help us build a world-class billing platform that offers a frictionless experience in payments, billing and subscriptions for our customers and partners.”
Easing Payment Friction in Product Offerings
Since March 2020, consumers’ shopping needs and payment preferences have shifted drastically. Many consumers have turned to digital-first businesses or channels to make their routine transactions. Additionally, companies like retailers as well as medium-sized businesses (SMBs) have adjusted accordingly to cater to their customers’ evolving demands.
Moreover, subscription services have captured more of consumers’ attention. Likewise, businesses in various industries and several retailers like Walmart, among others, have expanded into the subscription space to match consumers’ new preferences.
However, slow or cumbersome payments processes have been some of the challenges that hinder businesses from bringing innovative products or services to the markets. Fintech companies like Stripe and Celonis have emerged to help businesses circumvent the frictions and costs of developing new payment capabilities from scratch.
