Founded in 2017, the company provides a SaaS-reconciliation which tracks transaction lifecycles and commercial contracts, enabling reconciliation outward and inward payments and collection of transaction data from financial systems and non-Stripe payment processors, according to Finextra.
Recko’s software will be integrated into Stripe’s existing product suite and will enable the San Francisco-based tech giant to provide financial health reporting for business customers.
“Payments reconciliation shouldn’t be a mild headache that balloons into a migraine as a company grows—it should be an easy, highly automated process,” Stripe Chief Product Officer Will Gaybrick stated in the post.
Recko’s tracking also allows individual transaction matching across entire ledgers and is capable of parsing through separate currencies, fees, refunds and chargebacks. This allows significant data insight into reconciliation reports and will enable Square to embed the information into existing payment framework.
“Stripe helps millions of businesses around the world streamline their revenue management—from subscriptions and invoicing to revenue recognition and bookkeeping. With Recko, we’ll automate their payments reconciliation, a critical input into their overall financial health,” Gaybrick said.
This is the latest in a number of acquisition deals for Stripe this year, including their purchase of card authentication platform Bouncer, automatic sales tax service TaxJar, and international expansion purchases of Nigeria’s Paystack and Ireland’s Touchtech, according to TechCrunch.
The acquisition is part of a larger consolidation movement in financial technology, with split decisions being made by fintechs to either verticalize their business structures, “unbundle” or consolidate large amounts of services into their platforms in the way of “Super Apps.”
“Joining Stripe is a perfect next chapter for Recko, and we can’t wait to help grow the GDP of the internet by removing the burden of reconciliation complexity,” Recko co-founder and CEO Saurya Prakash Sinha stated in response.