Why Pipe eyes EU Expansion as SMB Attach Rates Soar
In an interview with FinTech Magazine, Pipe discusses its ambitious expansion plans and the growing traction of its embedded working capital solutions.
The fintech has carved out a distinctive position in the working capital market through its pre-approved underwriting approach, which the company says delivers exceptional customer experiences for small and medium-sized businesses.
“Using our underwriting engine and giving them pre-approved offers so that when they actually see that offer, 98% of the time they're going to get that amount,” explains Amy Loh, CMO at Pipe.
“That's a really good customer experience. They don't have to deal with any sort of denials or getting rejected.”
This streamlined approach has proven particularly effective in serving what the company identifies as a chronically underserved market segment.
SMBs represent “the most underserved segment worldwide, not just in the US but also in the UK and other parts as well,” making working capital accessibility a critical pain point that Pipe aims to address.
Partnership strategy drives strong conversion rates
The company's embedded finance strategy has shown promising early results, particularly through its partnership with GoCardless.
High attach rates have become a consistent feature as new partnerships launch, with conversion metrics continuing to improve over time.
“We see attach rates really high when we kick something off, kick off a new partnership,” Amy notes. “Even with GoCardless and into the embedded UI, as they send us new merchants, we're seeing the conversions continue to improve all the time.”
The repeat usage patterns suggest strong product-market fit, with 40% of GoCardless merchants already having taken a repeat advance.
This recurring behaviour creates a compounding benefit for platform partners whilst establishing Pipe as a de facto line of credit for businesses.
“They really like this product offering and they're continuing to come back and draw down more capital, giving the platform additional benefits every time their customer draws, and we're acting like a line of credit for them,” Amy explains.
“As we sign on new partners, we really want to be able to serve them where their customers are”
Geographic expansion accelerates
Pipe's international rollout has gained momentum throughout 2025, with the UK launch completed last year, followed by Canada earlier this year.
Australia represents the next milestone, with launch planned before year-end. The company positions this geographic diversification as essential for serving partners' global customer bases effectively.
The technical architecture enables efficient multi-market deployment, which Amy describes as a key competitive advantage. “That's really the beauty and the benefit of Pipe - with a single integration you can launch in multiple geos,” she explains.
Looking ahead, the company has mapped out further expansion into the European Union for next year, alongside entry into Asian markets including Japan.
This international growth strategy reflects both the global nature of the SMB funding gap and Pipe's ambition to serve partners wherever their customers operate.
“As we sign on new partners, we really want to be able to serve them where their customers are,” Amy concludes, highlighting how geographic expansion remains closely tied to partnership development and customer demand.
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