Stripe Connect and Stripe Checkout are two Stripe tools for different online payment scenarios. Connect suits platforms and marketplaces that need to split payments between participants, while Checkout suits online stores that want to boost conversion with a ready-made, responsive payment form.
Payment solutions are a critical part of any online business. Stripe, a leading platform that helps businesses get paid for their goods, offers two powerful tools that make payments simpler: Stripe Connect and Stripe Checkout. In this article, we look at their main features and benefits.
Stripe Connect: built for marketplaces and platforms
Stripe Connect is a solution designed specifically for marketplaces, platforms and other business models that involve multiple parties. It makes it easy to charge buyers for goods and to pay third parties such as sellers or service providers.
Key features of Stripe Connect:
- Flexible payment routing.
You can set up how funds are split between the parties to a transaction, whether that is the platform, the sellers or anyone else involved. - Easy onboarding of new participants.
Stripe Connect simplifies registering and verifying new sellers or service providers while ensuring compliance with Know Your Customer (KYC) requirements. - Global reach.
Support for more than 135 currencies and dozens of popular payment methods lets you scale your business internationally without extra effort. - Powerful tools for platforms.
Stripe Connect provides tools for managing users, payments to sellers, reports and analytics, as well as roles and permissions. - Additional revenue streams.
Platforms can monetize payments by charging a fee on transactions or by offering additional financial services such as lending or card issuing.
Stripe Checkout: an optimized payment form
Stripe Checkout is a ready-to-use payment form optimized for conversion. You can embed it directly in your website or use it as a separate page hosted by Stripe.
Key benefits of Stripe Checkout
- High conversion.
Stripe says that using Checkout increases conversion by 8% compared with other payment forms. - Support for many payment methods.
Checkout supports more than 40 popular payment methods, including credit/debit cards, Apple Pay, Google Pay and many more. - Responsive design.
The payment form automatically adapts to the screen size, providing a smooth user experience on any device. - Customizable appearance.
You can customize the colors, fonts and styles of the form elements to match your website’s branding. - Additional features.
Checkout offers features such as automatic tax collection, cross-selling, subscriptions, abandoned cart recovery and much more.
Payment methods supported by Stripe Checkout
According to Stripe’s documentation, Stripe Checkout supports more than 40 local payment methods, including:
- Credit and debit cards: Visa, Mastercard, American Express, Discover, JCB, Diners Club, China UnionPay and others.
- Digital wallets: Apple Pay, Google Pay, Microsoft Pay and more.
- Buy now, pay later: Afterpay, Klarna and other BNPL services
- Bank transfers and direct debits
- Local payment methods in different countries: iDEAL in the Netherlands, SOFORT in Germany, Alipay and WeChat Pay in China, and many others.
Stripe Checkout automatically determines the most suitable payment methods based on the buyer’s location and other factors. Sellers can turn specific payment methods on or off in the Stripe Dashboard.
Currencies supported by Stripe Checkout
According to Stripe’s documentation, Stripe Checkout lets buyers pay for goods in more than 135 currencies from around the world. Note, however, that the available currencies may vary depending on the payment method used and the buyer’s location.
For card payments, Stripe supports a wide range of currencies, including major world currencies such as the US dollar (USD), the euro (EUR), the pound sterling (GBP), the Japanese yen (JPY) and many others. The full list of currencies supported for card payments is available on Stripe’s currencies page.
For alternative payment methods such as bank transfers, digital wallets and local payment systems, the available currencies are set by the provider of each method. As a result, the list of supported currencies may differ from one payment method to another. You can find this information on the documentation page for each payment method.
In addition, Stripe Checkout supports adaptive pricing, which automatically shows prices in the buyer’s local currency based on their location.
Improving conversion with Stripe Checkout
Stripe Checkout offers a wide range of features and optimizations that help increase conversion when customers pay for their orders. Here are some of the key ways to improve conversion with Stripe Checkout:
- Support for many payment methods.
Stripe Checkout supports more than 135 currencies and over 40 popular payment methods, including credit/debit cards, digital wallets (Apple Pay, Google Pay and others), local payment systems and other options. By offering each customer their preferred way to pay, you make it more likely that they will complete the purchase. - Responsive design for mobile devices.
About 42% of all online purchases in 2022 were made on mobile devices. Stripe Checkout automatically adapts to mobile interfaces, providing an excellent user experience on smartphones and tablets. - Localization and internationalization.
Checkout uses geolocation to identify the customer’s country and automatically localizes the payment page into their native language, displays the relevant fields (such as VAT for European customers) and complies with local tax laws. This reduces drop-offs caused by localization issues. - Real-time data validation.
Using machine learning, Checkout detects the most common input errors and lets customers correct them instantly, which cuts down on abandoned payments caused by such errors. - Faster checkout and built-in discounts.
Stripe Checkout lets returning customers pay for purchases in one click and makes it easy to add coupons, discounts and promotions, which boosts conversion. - Analytics and A/B testing.
Stripe analytics provides detailed sales data, including average order value, purchase frequency and customer lifetime value. The A/B testing tool lets you compare how well different payment methods perform. - Fast page loading.
Stripe Checkout is optimized to load quickly, which is critical, since delays significantly reduce conversion.
In short, by using Stripe Checkout with its many optimizations for different devices, regions and customer preferences, you can significantly increase conversion when customers pay for orders on your website.
Using Stripe tools
Stripe Connect and Stripe Checkout can be used separately or together, depending on your business needs. For example, a platform can use Stripe Connect to manage payments between buyers and sellers, and Stripe Checkout to give buyers an optimized payment form.
To sum up, Stripe clearly offers powerful tools for building secure, convenient payment solutions that can significantly increase conversion and make it easier to scale your business. Whether you run a marketplace, a platform or a regular online store, Stripe Connect and Stripe Checkout can be an excellent choice for your payment needs.
Stripe Connect takes the complexity out of multi-party payments, while Stripe Checkout makes paying easier for the buyer and helps increase conversion.
Stripe Connect vs Stripe Checkout: what’s the difference
| Aspect | Stripe Connect | Stripe Checkout |
|---|---|---|
| Main purpose | Handling multi-party payments | A ready-made payment form for buyers |
| Best for | Marketplaces, platforms and services with sellers | Online stores and brands |
| Key advantage | Splitting funds and managing payments to sellers | Higher conversion and a fast launch |
| Additional capabilities | KYC, roles, reporting, analytics | Localization, responsive design, taxes, subscriptions, cart recovery |
Frequently asked questions
What is the main difference between Stripe Connect and Stripe Checkout?
What is the main difference between Stripe Connect and Stripe Checkout?
Stripe Connect is for splitting payments between several parties and paying each of them, while Stripe Checkout gives the end buyer a convenient way to pay.
Who is Stripe Connect for?
Who is Stripe Connect for?
Stripe Connect suits marketplaces, platforms, SaaS services and businesses that need to onboard sellers, run KYC checks on them and manage payments to them.
Who is Stripe Checkout for?
Who is Stripe Checkout for?
Stripe Checkout is ideal for online stores and brands that need to launch a payment page quickly, with support for a variety of payment methods and a mobile-friendly layout.
How many payment methods does Stripe Checkout support?
How many payment methods does Stripe Checkout support?
Stripe Checkout supports more than 40 popular payment methods, including cards, Apple Pay, Google Pay, local payment methods and BNPL services.
How many currencies does Stripe Checkout support?
How many currencies does Stripe Checkout support?
Stripe Checkout supports more than 135 currencies, although the availability of individual currencies depends on the payment method and the buyer’s location.
