Starting today, marketplaces using Stripe Connect can send Instant Payouts to sellers or service providers on their platform. To start, it’ll be available to marketplaces in the U.S. using Managed Accounts.
Unlike traditional bank transfers that can take several days, Instant Payouts are deposited and available in just minutes. This way, marketplaces can give service providers a much better product experience by sending them their earnings faster than ever—and greater flexibility and control over when they get paid.
We’ve been testing Instant Payouts as a beta with platforms of all sizes, including Lyft, Instacart, goPanache, Postmates, and Care.com. Across our beta users, service providers for on-demand marketplaces are thrilled to receive earnings faster.
Lyft, which was the first platform to integrate last November, has already sent over $500 million to drivers using Instant Payouts. In fact, Lyft now sends the majority of its driver payouts instantly—the only ridesharing company to do so. (Check out what Lyft driver Justine had to say about Lyft’s Express Pay.)
Here’s how it works:
- Collect debit card details: An increasing number of marketplaces are building their payout flows around debit cards. Bank details are hard to dig up and error-prone, but everyone has a debit card in their pocket. (Stripe will also automatically verify the details when a debit card is added.) Instant Payouts can be sent directly to service providers’ debit cards and funds are automatically deposited into the bank account linked to the debit card.
- Let sellers request Instant Payouts: Platforms typically offer Instant Payouts as an option in addition to their regular payout timing. Marketplaces can also customize when service providers can request a payout to their bank accounts. For example, Lyft offers an instant payout option in addition to their weekly transfer—and only once a driver earns $5.50.
- Send the payout: For the vast majority of payouts, funds are deposited within minutes. Initiating an Instant Payout requires just one additional parameter when creating a transfer:
We’ve consistently heard from marketplaces of all sizes that attracting (and retaining) more service providers is crucial for growth and that this is often the tougher side of the marketplace to build. We’ve already seen that offering Instant Payouts has helped our beta users achieve that goal and we’re looking forward to more marketplaces enabling this feature soon.
If you have any questions, feedback, or need help getting started, please contact us!