5 years later: Stripe announces B2C bank account offering, with <unique features X, Y, Z>, including an introductory 5% cashback on anything processed through Stripe.
What are the profit margins on consumer banking? It seems like a commodity product, I expect it to be not amazing (compared to tech companies’ profit margins).
Why would giving 5% cash back solve any of Stripe’s problem? Any of the other banks can do the same now, but they obviously don’t think it’s worth it to lose that much money for customer acquisition, especially when switching costs are so low.