Stripe automates the payout process by offering a controlled flow of funds with Stripe Connect API. It can be integrated with eCommerce marketplaces to facilitate payments automatically. It is highly compliant, secure, and provides instant split payments charging a fixed percentage of money per transaction. To know more about split connect for marketplaces please visit our website.

1. Stripe Connect For
Marketplaces
Working & Benefits

2. Introduction
A global payment facilitator and a leader in payment solutions, Stripe
automates the payout process by offering a controlled flow of funds
with Stripe Connect API. It can be integrated with eCommerce
marketplaces to facilitate payments automatically. It is highly
compliant, secure, and provides instant split payments charging a
fixed percentage of money per transaction.

3. Stripe Connect requires each user to have an individual Stripe
account for transactions in a marketplace.
Users can either create a new account or add an existing Stripe
account to the marketplace during registration.
How does Stripe Connect work?

4. How does Stripe Connect work?
When orders are placed simultaneously using stripe accounts, the
Stripe Connect Split Payment API instantly splits the charged
order amount between sellers and the admin.
These payments flow to the specific stripe accounts and the
records are maintained in the admin/seller panel.

5. How refunds or returns are
managed through Stripe Connect?
When the refund request is initiated by the buyer and approved by the
admin/seller, funds will be automatically credited to the credit/debit
card originally charged. In case, the connected account and platform’s
balance is negative or insufficient, the refund status will be set to
pending. When funds are available, Stripe Connect Split Payment API will
automatically process the refund, changing the status to successful.

6. Instant onboarding and verification – The Stripe Connect API follows
dynamic KYC checks, real-time screening, and other sanctions to approve
new users. Moreover, it offers instant onboarding for existing businesses
and individuals already using Stripe.
Secure – The payment method is globally licensed, complies with PCI DSS
Level 1 certification, and uses account tracking technology with instant
disablement to prevent fraudulent users.
Benefits

7. Accept payments internationally – Facilitate the flow of funds between
users and marketplace seamlessly even across borders with Stripe
Connect. It accepts 135+ currencies globally, ensuring a truly scalable
business.
Smart payouts – Collect commissions, schedule payouts, and
automatically transfer funds from buyer to seller instantly. Payouts by
Connect eliminate the need to track and transfer funds manually.
Benefits

8. Limitations
Slightly Expensive – Stripe Connect charges a nominal 2.9% + $0.30 per
transaction on credit card processing and an additional 0.6% fee on each
transaction involving an international credit card. Moreover, sellers on the
marketplace will have to pay a standard $0.25 fee on direct or ACH payout.
Stripe costs a little more than the competitors, but their services are
exceptional.
No mass payments – Stripe Connect does not allow the admin to pay multiple
sellers at once.

9. Online Marketplaces Using Stripe
Connect
Leading global brands and online marketplaces use Stripe Connect to facilitate the flow of
funds. Lyft, for instance, offers drivers the convenience to get paid within a couple of hours
through Express Pay built using Stripe Connect. Similarly, Kickstarter funds over 160k projects
using Stripe Connect, helping creators from 20+ countries.
Moreover, Instacart – a grocery retail giant uses Stripe Connect to accept payments directly
from customers and facilitate payments to shoppers, delivery partners, and grocery stores.
Availability - While Stripe Connect is currently available for businesses in 43 countries, it
accepts payments from customers across the globe.

10. Pre-integrated With Yo!Kart
Yo!Kart is an industry-leading multivendor solution that comes with
powerful in-built modules like product catalog system, shipping
management, tax management, and more. The platform currently
empowers more than 1000 eCommerce marketplaces worldwide.
Success to Yo!Kart is derived from our agile team that continuously
endeavor towards building a future-proof online marketplace software.

11. Pre-integrated With Yo!Kart
The pre-integrated Stripe Connect module in Yo!Kart is a step towards
further streamlining & automating payments for improved efficiency in
an online marketplace. Stripe Connect Split Payment API automates fund
transfers and provides real-time split payments which are invaluable for
an online business.

12. How Stripe Connect Works With Yo!Kart
(How to enable)
To access and enable this feature, go to Plugins -> Split Payment Method
under System Settings in the admin dashboard. Once Stripe Connect is
activated, the multi-vendor platform will automatically disable regular
payment methods like PayPal, Amazon, Bank Transfer, and others.

13. For more insights on Stripe For
Marketplaces
Read: Stripe Connect Split Payment For
Online Marketplaces – Working & Benefits