Stripe Connect can now let users handle worker/driver/supplier payments in 18 Countries. Stripe Connect has gone through some major changes and is now helping to create a better customized experience for sellers, alongside helping business platforms expand their geographic reach.
“Before Stripe, Lyft was literally running their own banking department, like a Bank of Lyft, with people who were responsible for doing driver payments,” said John Collison in an exclusive conversation with Forbes. “That kind of thing in a fast-growing startup is not efficient.”
Stripe has been actively contributing to established businesses during the past years by helping them accept payments in a seamless manner. Back in 2012, Stripe had launched Stripe Connect, which allows multi-sided platforms to connect thousands of seller accounts on Stripe. Since then the number of platforms adopting Stripe Connect has exploded, and Stripe has helped over half a million sellers get paid on such platforms.
Running these multi-sided platforms involves complex processes like verifying seller identity, collecting and verifying the seller’s banking information, tracking seller earnings, scheduling payments for sellers, managing tax reporting requirements, and more. To make things less complex for platforms, Stripe has made some significant updates to Stripe Connect. With the new Stripe Connect, setting up accounts for sellers is now easier, as they don’t even have to come to Stripe. The new Stripe Connect can now support sellers across multiple geographies, with Stripe handling the operations of the platform.
Stripe Connect can now enable platforms to set up “Managed Accounts”. Managed accounts can help customize all aspects of the experience for sellers, right from the setup flows to the payment schedules. These managed accounts can be set up for sellers wherever Stripe is supported (i.e. across 18 countries with more coming this year). Essentially, this means Stripe’s once separate entity, called “Transfer API”, is now embedded into the new Stripe Connect.
For businesses who wish to scale abroad, accepting payments has always been a difficult task. Traditionally, in order to support sellers in other countries, the business platforms had to run all their international transactions through the U.S., which meant more declined cards and currency conversion fees. The new Stripe Connect is bringing in localized channels for sellers to reroute their payments channels through localized mediums. This will continue to help more business platforms to expand internationally, while simultaneously leveraging the local experience.