Fighting for Survival of Small and Mid-Sized Merchants
Shopify founder and chief executive Tobi Lutke acknowledged that the coronavirus crisis had everyone living in “unprecedented times.”
“This is going to be one of the most challenging and most crazy chapters in our lives,” Lutke said. “Shopify exists to make commerce better for everyone. That’s our company mission. Right now we’re dedicating ourselves to try to get as many SMBs (small and mid-sized business) to survive as possible.”
The new business account, called Shopify Balance, will allow merchants to track bills and pay expenses. It includes a debit card that can be used to access sales revenue at automated teller machines, the Ottawa-based company said. Shopify is not seeking a banking license but will work with “external partners” on the service.
Shopify’s chief operating officer, Harley Finkelstein, said that most banking services are designed for large, established businesses, not independent business owners.
The company found that two in five merchants use their personal bank accounts and cards for business purposes. That means they combine their personal and business finances and cannot easily monitor the financial health of the business.
Finkelstein said Shopify Balance would be launched later his year.