Stripe Connect

Stripe Connect. Stripe Connect is a Stripe product that lets a platform process payments on behalf of multiple sub-merchants (the platform's customers) — handling KYC, payouts, and fee splits. Vertical SaaS platforms commonly use Stripe Connect so their merchant customers can take payments without each merchant integrating Stripe directly.

Definition

Without Stripe Connect, a vertical SaaS platform would have to either (a) require every merchant customer to bring their own Stripe account, or (b) ingest all payments centrally and pay each merchant out separately (which is a money-transmitter issue). Stripe Connect resolves both: each merchant gets an onboarded Stripe account through the platform's flow, payments go to that merchant directly, and the platform can charge a per-transaction or subscription fee.

Connect account types

Standard (merchant has a full Stripe account, platform reduces UI surface), Express (lighter onboarding, platform owns more of the UX), Custom (platform owns the entire UX, Stripe handles compliance under the hood). Vertical SaaS platforms typically use Express or Custom for the cleanest end-user experience.

KYC + onboarding

Stripe requires KYC on every connected account: business identification, beneficial-owner attestation, and a bank account for payout. The platform's job is to make this flow as friction-light as possible while collecting everything Stripe needs.

Payout schedules

By default, Connect accounts pay out to the merchant's bank account on a rolling schedule (e.g., daily with a 2-day delay). The platform can adjust this for specific merchants when needed (e.g., higher-risk merchants on a longer delay).

See also

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