Discover why 75% of the world’s leading marketplaces are built on Stripe.
Watch this session to learn about:
- How Stripe helps solve the challenges inherent in building a multi-sided marketplace
- The process of building a marketplace on Stripe, including accepting payments, routing and splitting funds, and making payouts
- How to enhance your marketplace to add more value for users on both sides by enabling in-person payments, subscriptions, spend cards, and more
Narrator: Hi, thanks for joining us. We’re here to look at some of Stripe’s solutions for multi-sided marketplaces like Lyft, Instacart, and RentWell—a fictional app that connects vacation home guests and hosts.
Marketplaces like RentWell are really challenging to build. Why? Let’s break it down. Hosts offering properties for rent need to be onboarded to receive payments. The platform needs to be able to accept payments in different currencies, and rental funds need to be split and paid out to different parties all over the world.
It’s a set of challenges that pretty much every online marketplace is going to face, whether they’re matching up guests and hosts; riders and drivers; or diners, dashers, and restaurants. That’s why Stripe offers robust infrastructure for accepting payments, routing and splitting funds, making payouts, and much more. Let’s see what this might look like in practice. Let’s say you have a property you want to list as a short-term rental on the RentWell marketplace.
First, you have to register as a host. As a marketplace on Stripe, RentWell can use Stripe Connect’s money movement APIs to easily bring hosts on board and get them paid. With Stripe Connect, marketplaces can choose to use our pre-built onboarding flows or build their own. RentWell is using a fully white-labeled onboarding flow option.
So, now we’re registered. And here we are at the host dashboard. From here, you can see past stays at the property, receive funds, create rental listings, and more. To get paid, you need to verify your identity. Let’s take care of that now. This is powered by Stripe Identity, which RentWell uses to verify users globally. Stripe Identity can programmatically confirm the authenticity of ID documents from over 33 countries.
Now let’s create a listing so that guests can rent it. That’s done. Now that the listing is up, let’s see what this would look like from the guest’s point of view. Here’s the listing. Let’s go ahead and book it. As you can see, you’re prompted to enter payment info. Stripe supports 135 currencies and more than 50 different payment methods, including buy now, pay later payment methods like Klarna, Afterpay, and Affirm.
And our payments interfaces can automatically detect where the end user is located and offer them local payment methods in their market. For instance, a shopper in the Netherlands would see iDEAL, while a shopper in Singapore would see Alipay and WeChat Pay as payment options. Now that the guest has paid, RentWell quickly sends the host their money using Connect’s global routing and payout engine to design a flow of funds. That includes sending funds around the world.
RentWell can determine the payout schedule it wants to use and the monetization approach that works best for its business. Simple, right? Stripe Connect comes complete with everything RentWell needs to build a multi-sided marketplace. This includes administrative tools for handling platform-wide data, isolating host accounts by size or status, and modifying host account information.
And the beauty of Stripe’s marketplace solution is that other products can be added on to offer more value to the users on both sides of the marketplace. For example, some marketplaces enable in-person payments acceptance with Stripe Terminal.
Some have used Stripe Billing to add subscriptions like DashPass to their product. And others have integrated with Stripe Treasury and Stripe Issuing to offer money management accounts and spend cards to enable their businesses to help centralize their financial operations. And some even offer financial services like small business financing, all of which are powered by Stripe. All of this is why 75 of the leading 100 marketplaces are built on Stripe.
We have solutions for other business models too, like ecommerce businesses, B2B SaaS, and software platforms. I hope you check them out.
Visit stripe.com to learn more. Thanks for watching.