Growth of Transactional Value in Digital Payments Segment<\/strong><\/p>\n\n\n\n Source: Statista<\/p>\n\n\n\n However, utilizing key resources and energy towards building a payment gateway from scratch is not the best solution, especially for an eCommerce marketplace owner. This is because of higher development\/maintenance costs and lengthy integrations with payment processors. Instead, it is recommended to opt for a third-party payment gateway like Stripe Connect for all online marketplace payments.<\/p>\n\n\n\n <\/p>\n\n\n\n An online multi-vendor marketplace involves hundreds or maybe thousands of transactions every minute. Amazon, for instance, recorded a staggering $10,000 in sales every second in Q1 2020, as per the analysis from Christopher Rossbach. Now, imagine the Amazon team sending payouts manually for every transaction involved. This would have created mayhem.<\/p>\n\n\n\n Thankfully, there are many third-party payment methods and resources in place to automate transactions. And Stripe Connect is one of them. This global payment facilitator and leader in payment solutions automates the payouts process by offering a controlled flow of funds with Stripe Connect API. It can be integrated with eCommerce marketplaces to facilitate payments automatically.<\/p>\n\n\n\n It is highly compliant, secure, and provides instant split payments charging a fixed percentage of money per transaction. <\/p>\n\n\n\n Also, refunds\/return requests can be entertained through Stripe Connect. For instance, 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\u2019s balance are negative or insufficient, the refund status will be set to pending.<\/p>\n\n\n\n When funds are available, Stripe Connect Split Payment API will automatically process the refund, changing the status to successful.<\/p>\n\n\n\n Instant onboarding and verification \u2013<\/strong> The Stripe Connect API follows dynamic Know Your Customer (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. <\/p>\n\n\n\n Secure \u2013<\/strong> 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. <\/p>\n\n\n\n Accept payments internationally \u2013<\/strong> Facilitates the flow of funds between users and the marketplace seamlessly even across borders. It accepts 135+ currencies globally, ensuring a truly scalable business. <\/p>\n\n\n\n Smart payouts \u2013<\/strong> 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.<\/p>\n\n\n\n Slightly Expensive \u2013<\/strong> 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 in the marketplace will have to pay a standard $0.25 fee on direct or ACH payout.<\/p>\n\n\n\n Stripe costs a little more than the competitors, but their services are exceptional.<\/p>\n\n\n\n No mass payments \u2013 <\/strong>Stripe Connect does not allow the admin to pay multiple sellers at once.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Moreover, Instacart \u2013 a grocery retail giant uses Stripe Connect to accept payments directly from customers and facilitate payments to shoppers, delivery partners, and grocery stores.<\/p>\n\n\n\n While Stripe is known for its ability to accept payments worldwide, merchants in many countries are still not able to use Stripe. 47 countries<\/a> worldwide support Stripe for businesses.<\/p>\n\n\n\n Yo!Kart is an industry-leading eCommerce multivendor solution that comes with powerful in-built modules like a product catalog system, shipping management, tax management, and more. The platform currently empowers more than 2000 eCommerce marketplaces worldwide. Success to Yo!Kart is derived from our agile team that continuously endeavors toward building a future-proof online marketplace builder<\/a>.<\/p>\n\n\n![\"\"](\"https:\/\/www.yo-kart.com\/blog\/wp-content\/uploads\/2022\/06\/Digital-Commerce-Transaction-Value.png\"){kind=spacer}
<\/figure>\n\n\n\nTable Of Content:<\/h3>\n\n\n\n
Introducing Stripe Connect For Online Marketplaces<\/h2>\n\n\n\n
How does Stripe Connect work?<\/strong><\/h3>\n\n\n\n
How Refunds\/Returns are Managed Through Stripe Connect?<\/h3>\n\n\n\n
How Does Stripe Connect Power Online Marketplaces<\/strong><\/h2>\n\n\n\n
Hindrances Using Stripe Connect<\/h2>\n\n\n\n
Online Businesses Using Stripe Connect<\/h2>\n\n\n\n
![\"\"](\"https:\/\/www.yo-kart.com\/blog\/wp-content\/uploads\/2022\/06\/Online-businesses-that-use-Stripe-connect.png\")
<\/figure>\n\n\n\nGlobal Reach<\/h3>\n\n\n\n
Stripe Connect Pre-integrated With Yo!Kart<\/h2>\n\n\n\n