Stripe Connect
Stripe Connect is Stripe's API for marketplaces and platforms that need to move money between multiple parties — enabling split payments, seller payouts, and platform fees.
In depth
Stripe Connect powers the payments of Lyft, Instacart, Shopify, and thousands of marketplaces. When you have a platform where buyers pay sellers and you take a commission, Stripe Connect is the right tool.
Connect account types: - Standard: sellers use their own Stripe account — least platform control - Express: Stripe-hosted onboarding — sellers see 'Powered by Stripe' but you control UX - Custom: fully branded experience, you manage all compliance
For most marketplaces, Express is the sweet spot — Stripe handles KYC and payouts, you control the UX.
Key features: - Split payment: charge a buyer $100, pay seller $85, keep $15 platform fee automatically - Instant vs delayed payouts: pay sellers immediately or hold in escrow - 1099 tax forms generated automatically for US sellers over $600 - Stripe Identity for seller ID verification - Dispute management and chargeback protection
Real example
Airbnb uses Stripe Connect: guest pays $200 for a night, Airbnb takes a 14% guest fee ($28) + 3% host fee ($5.64), and the host receives $170.36. All of this happens automatically via Stripe Connect split payments.
Tools & calculators
Related terms
SaaS (Software as a Service)
Software as a Service (SaaS) is a software distribution model where applications are hosted in the cloud and provided to customers over the internet on a subscription basis, rather than installed locally.
API (Application Programming Interface)
An API (Application Programming Interface) is a set of rules and protocols that allows different software applications to communicate with each other — like a contract defining how one piece of software can request data or actions from another.
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