What Connect offers is for marketplaces to have a more customizable experience for their sellers and contractors who work across the platforms that Stripe serves. Stripe's platform works with companies like Kickstarter, Lyft, Shopify and Deliveroo. Using these upgraded features, the multisided platforms can use Managed Accounts to take more control of design, determine their own payment schedule, customize how fees are handled, etc.
What Stripe pitches as one major benefit is that it "gets out of the way so your sellers never have to leave your platform."
"Since the launch of Managed Accounts in the U.S. and Canada last year, we’ve already helped millions of sellers get paid. We’ve worked over the past year to ensure that the experience of building, running and scaling your marketplace is as easy as possible, no matter where your business is based," wrote David Schreiber, who works on Stripe's business and growth team.
"Modern marketplaces are building more than just simple apps; they provide an end-to-end experience for both consumers, as well as the drivers, restaurants, sellers or contractors on their platform. We’re excited to see the experiences entrepreneurs in the U.K., Ireland and the Nordics will build with Managed Accounts and how they’ll use Connect to scale internationally, not only in Europe but around the world," he wrote in the blog.
Features of Managed Accounts include:
- Marketplaces in Europe can now spin up Managed Accounts for sellers or contractors in any of the 25 countries that Stripe supports today without having to register a local business entity or establishing banking relationships in each region.
- Expand business internationally to new countries without having to build payments infrastructure to meet local requirements.
- Removing the requirement to acquire licenses or decipher per-country compliance intricacies without Stripe's assistance.
- Stripe will help businesses verify seller identities (to comply with know-your-customer laws and prevent fraud), collect and verify your sellers’ banking information, track seller earnings, etc.