Today there are over 1,440 Independent Software Vendors (ISVs) across the U.S., according to a recent analysis by Statista. As the number of platform providers continues to expand, Vendors are in constant search of new ways to build more powerful, valuable platforms for their customers, while also accelerating the amount of time it takes for them to go to market. The ultimate goal of their platforms is to help satisfy the existing needs of their customers, which now includes the major need for integrated payments across all industries.
Unlike basic, one-to-one payment functions used by general consumers, larger software platforms need a wider variety of payment options and functionalities. That means the more customized the system, the harder it is to find the right merchant payment services to integrate into the platform. The reality is that there’s a lot of hidden work and complexity involved when it comes to adding the ability for users to accept and manage payments.
As a result, vendors continually look for better ways to manage one-to-many and many-to-many payment flows and for increased flexibility in how payments are being routed through their platforms. This is where merchant payment services companies like Stripe Connect and Stax come into play, with plug-and-play solutions that can quickly provide ISVs the payment functions they need without the extra work.Learn More
What Are Stripe Payments?
Stripe Payments is a product offered by popular payment processing company Stripe. Under the Stripe Payment label, the company offers its payment platform services to a variety of entities.
Those who opt for this service can use the solution on their website and mobile apps alike. This is possible through digital integrations that use application programming interface (API) support and customizable checkout pages that can be set up through a few clicks.
What sets this service apart from many other payment solutions is how it easily becomes a part of your website or software solutions. Whether you have a mobile app or an online store, you can easily turn Stripe Payments into a seamless section of it. With full support for software development kits (SDKs) and web applications, you can customize your checkout experience to its very last detail.
This service can accept all major credit card networks, which include but are not limited to Visa, MasterCard, Discover, and American Express. Due to the support of these credit card networks, you can also accept payments in over 135 currencies. In addition to credit card options and debit cards, Stripe also lets you accept payments through mobile wallets, bank transfers, and buy now pay later mechanisms.
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How Do Stripe Payment Options Work?
Stripe Payments work by using Stripe’s central payment platform, which has bundled its payment offerings into a ready-to-use solution. This means that you do not need a separate merchant account or a payment gateway when you choose Stripe. Instead, you have everything you need under the Stripe platform right from the time your sign-up is complete.
As a result, any payments that go through the Stripe platform also follow this bundled payment solution and end up in your Stripe account. You can then withdraw your payments to your bank account, making the process easy for you to follow.
Stripe can be integrated into mobile apps and desktop apps through APIs. They can also be utilized in web- or cloud-based applications by using the exact integration mechanisms. If you don’t want to customize the payments flow ultimately, you can use one of Stripe’s checkout pages to quickly set things up.
This Stripe service processes transactions in complete compliance with the Payment Card Industry Data Security Standard (PCI DSS). This means that by using this Stripe service, you can benefit from a PCI-compliant payment processing structure without having to go through intensive requirements.
Is Paying With Stripe Safe?
Paying with Stripe is entirely safe. With its keen attention to PCI compliance and PCI-compliant credit card processing services, payment methods and processes, secure encryption mechanisms, and various other security checks, the company has established its name as a credible payment solutions provider. Its recurring payments and accepting payments efficiency work for various customers from eCommerce to others who need to process credit cards in the modern era.
While stripe fees and general monthly fees for credit card processing may be an issue, many still rely on their stripe account and the payment processor to accept credit cards, process customer information, and foster various businesses. Further, while card payments are present, customers and businesses may realize that payments with Stripe have drawbacks like a lack of customer service for business owners and online businesses.
Stripe’s presence is highly prominent in the business industry, where it currently acts as a payment processing method for business entities with various products and services such as Amazon, Shopify, and SalesForce. The Internet business company is also known for deploying its payment solutions to apps such as Uber, Lyft, and Instacart. This gives Stripe a significant level of credibility and adds to its overall quality of solutions.
Since Stripe uses its payment gateway and doesn’t require a merchant account for each of its clients, it can maintain stringent security mechanisms through its grasp on technology. This allows you to trust the solution without having to think twice about your payment safety mechanisms.
With that being said, your app or website must be also equipped with security mechanisms at your end. This ensures that you are doing everything from recurring payments to general payments with card readers to protect your business’ checkout page and process from bad actors. From Stripe payment processing to the Stripe payment gateway and card details processing post-checkout page finalization, you can be sure the Stripe terminal and other products are quite secure.
What Is the Difference Between Stripe and Stripe Connect?
Stripe is the company name itself. Operating under this banner, the firm can offer payment processing solutions to a wide variety of customers. This includes large-scale corporations to mom-and-pop stores alike. The payment solutions range from online shopping carts to hardware terminals.
In comparison, Stripe Connect is one of many solutions that are sold under the Stripe label. Through this service, the company offers payment integration for platforms and marketplaces. This particular service is similar to Stripe Payments, but it is intended for mass transactions that happen on a larger scale between the users of a single platform. Examples of this model from Stripe’s own portfolio include names such as Shopify, DoorDash, and Uber.
Using Stripe Connect allows you to offer direct payment integration in your software-as-a-service (SaaS) solution, but without having to go through a myriad of compliance and regulation mechanisms. Since Stripe handles payment compliance by its modern solution, you can rest assured that your platform’s users can benefit from a secure payment mechanism through an easy-to-use integration.
Stripe Connect is also available through API options, which allow you to connect it to your software solution without any hassle. At the same time, the solution lets you comply with all security requirements from the get-go, which makes it easier to make payment transactions a part of your SaaS as well as marketplace solutions.
What Is the Stripe Connect Payment Method?
The Stripe Connect payment method is based on a set of API and programmable codes that integrate into software or apps. This allows the software solution for a mobile device or desktop in question to process payments through the Stripe platform, which brings a highly secure payment method to the forefront for your customers.
The Stripe Connect payment method supports mass transactions, which means that it is ideal for marketplaces and SaaS platforms. The solution with its payment gateway and other features currently being used by various large-scale names gives you an idea about the scale at which it can power the provider’s offered solutions.
To use Stripe Connect, you need to integrate the API and codes into your mobile app, web app, or desktop application. The integration is easy for experienced developers, which makes the solution highly sought after by companies that cannot afford significant levels of downtime.
Stripe Connect can also accept a variety of payment methods, which include but are not limited to major credit card networks, popular mobile wallets, and conventional bank transfers. With Stripe Connect, you can accept these payments from the “buyer” section of users on your platform, and transfer them to the “seller” section of your app or software solution. You can also use a variety of subscription-based pricing models, such as invoicing and recurring payments.
Is it Safe?
Stripe Connect uses the same state-of-the-art security mechanisms and products that have become the signature offering of Stripe. This includes strict PCI compliance as well as stringent encryption methods. As a result, Stripe Connect stands out as one of the most secure payment methods for small transactions and larger payments.
With Stripe Connect’s integration, you can easily bring the same level of safety to your application. This provides your users with state-of-the-art security without putting their safety or your credibility at risk.
This commitment to security applies throughout Stripe Connect and its accepted payment methods. This means that the safety mechanisms are not limited to credit cards or debit cards. They also remain in place for other payment sources such as digital wallets. Since these wallets such as Apple Pay use their encryption and security methods, this ensures that your platform’s payment transactions keep your users free of harm’s way.
This brings significant benefits to any app, software, or marketplace that wants to entertain mass transactions without putting its operations in jeopardy. That is why Stripe Connect stands out as a popular choice among many providers.
What Does Stripe Connect Have to Offer?
Recently we announced the launch of Stax Connect, our latest, all-in-one integrated payment solution, but how does it actually compare to the pre-existing and commonly used Stripe Connect?
Launched in 2012, Stripe Connect enables virtually any type of business model, including on-demand businesses, e-commerce, crowdfunding, and travel and events to accept credit card payments. At current, they offer 3 types of Stripe Connect accounts, each with a unique combination of offerings and limitations:
- No platform fees in addition to Stripe’s existing pay-as-you-go model
- Best for SaaS platforms where buyers transact directly with sellers
- The payment user experience and user communication is offloaded to Stripe
- A white label solution for ISVs that desire complete control over the user experience instead of having users contact Stripe directly
- Additional fees apply
- Express accounts are quick to implement, hybrid options that allow platform owners to customize some aspects while Stripe takes care of onboarding, verification, and account management
- Similar to Custom Accounts, additional fees apply
Pros of Stripe Connect
- Good for users already using Stripe
- Easy to implement with many well-built SDKs available
- Great documentation
Cons of Stripe Connect
- No User access to Stripe’s Dashboard for Custom accounts
- No User support provided by Stripe for Custom accounts, meaning you are responsible for building and managing the communication and support channels
- Responsibility for fraud prevention and monitoring rests on the shoulders of the platform owner
- Custom or Express accounts can give you a desirable UX but will increase your development resources as you would be responsible for building the infrastructure, including onboarding flow, user dashboard, and/or reporting functionality
- Express or Custom accounts can make you, the platform owner, liable for chargebacks and fraud
- Have to pay a fee per account that you create
- Expensive – pay the standard 2.9% + $0.30 per transaction in credit card processing fees, as well as: $2 per active account per month + 0.25% of payout volume. In addition to that, ISV customers will be charged $0.25 per ACH payout and a 1% fee on Instant Payouts
- Stripe keeps all funds with no revenue sharing as platform owners can’t keep potential revenue or adjust customer pricing
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What Does Stax Connect Have to Offer?
Similar to Stripe Connect, Stax Connect enables a wide variety of payment formats across all business types. By contrast, with Stax Connect you fully own the customer experience from beginning to end. Similar to Stripe Connect, our payment solution empowers every business with the ability to accept payments. There are no tiered offerings as we allow you to integrate a merchant payment services solution complete with proprietary software customizations right from the very start.
Stax Connect allows you to have access to a full payments experience, including the latest in data optimizations, analytics and reporting, and modern-day payments technology. All without the need to spend millions of dollars in time and money.
- Access to the Stax Dashboard
- Award-winning 24/7 customer support
- No need for custom engineering resource requirements
- Save costs on implementation, with no additional fees
- Easy enrollment allowing you to onboard customers in 20 minutes
- Access to the lowest credit card processing fees, in addition to the ability to adjust customer pricing
- Revenue Sharing
With Stax Connect, you can leverage your newest integrated payments solution as an additional revenue generation engine. We allow platform owners to monetize their payment processing through a custom revenue share.
Where Can I Find More About the Benefits of Stax Connect?
With Stax Connect, you can experience the benefits of an entire integrated payments ecosystem that works seamlessly with your platform. There are no tiers, no up-charges, and you have full access to custom pricing that best fits your business model.
Learn more about Stax Connect and find out more information on how you can quickly get started on monetizing payments today. We will be happy to answer any questions you have and help you leverage the best all-in-one software payment processing solution for your needs.