If you're the type of marketplace owner who prefers automation and less manual touch Stripe Connect is the best option for you! With Stripe Connect, your providers create their own Stripe Accounts and own the relationship with Stripe. You and your providers will receive your portion of the funds from each transaction. You, the marketplace owner, are not required to manually disperse funds, you simply set your commission fee and watch the cash roll in!
Setting up Stripe Connect
1) First, you'll need to create a Stripe Account if you don't already have one. Click here to create your account.
2) Once you've created an account, from your Stripe Dashboard, select Connect.
3) On the next page, select Get Started.
4) Select Platform or marketplace. Then click Continue.
5) Click on Complete your platform profile and then click the Start button.
6) You will be asked a series of questions about your marketplace business.
Select the industry that best matches your business. If you are unsure, select Other. Then click Continue.
7) In the next question, select From your platform's website or app and then Continue.
8) In the next question, select your preference. If you are unsure, we recommend selecting Both your platform's and the seller/service provider's name or Not sure. Then click Continue.
9) In the next question, select your preference. If you are unsure, we recommend selecting Your platform or Not sure. Then click Continue.
10) Next, review your responses and click Submit.
11) You will be directed to the Platform profile results page. From this page, select Activate account.
12) You will be asked a series of questions about your marketplace business. Complete each step.
13) Once you've completed filling out your business details, your account will be activated. You're all set!
IMPORTANT: Do not set the Payout Schedule to Automatic after setting up the Stripe Account. Setting the Payout Schedule as Automatic will generate issues when handling the payouts to customers!
You can find Part 2 for this article here: Stripe Connect - Part 2 - Finish setting up your account