Stripe for marketplaces

Published on March 20, 2025 by Rasmus.

Choosing the right payment provider is crucial for any online marketplace. But with so many options available, how do you pick the right one? And why is Stripe Connect often the go-to choice for smaller marketplaces? 🤔 (Let's find out!)

Whether you're just starting your marketplace journey or looking to optimize your existing payment setup, this guide will help you make the right choice.

Watch the video below for a detailed walkthrough.

Why do you need a specialized payment provider like Stripe for marketplaces?

Running a marketplace isn't like running a regular e-commerce store. You're not just handling payments - you're managing transactions between multiple parties, splitting commissions, and ensuring everyone gets paid correctly.

A specialized marketplace payment provider helps you:

  • Process payments securely between buyers and sellers
  • Automatically split payments and handle commissions
  • Manage seller onboarding and verification(KYCKYC (Know Your Customer) is a process of verifying the identity of users to prevent fraud and comply with regulations. It typically involves collecting and validating identification documents.)
  • Handle tax compliance and reporting
  • Scale your operations globally

Available payment providers for marketplaces

Let's look at the main players in the marketplace payments space:

  • Stripe Connect: Known as the most developer-friendly option with extensive documentation and easy implementation. Usually the go-to option for small to medium-sized marketplaces.
  • Mangopay: European-focused solution with good marketplace features. Has a minimum monthly cost.
  • Adyen: Enterprise-level solution with powerful features but requires significant development resources and a minimum annual revenue to get started.
  • PayPal: Widely recognized but limited marketplace features compared to the other more specialized providers.

Among these options, Stripe for marketplaces usually stands out as the best choice for new marketplaces. It offers the perfect balance of features, ease of implementation, and scalability without requiring significant upfront costs or technical resources.

Okay, so how do you pick the right one? 🤔

Here's what you need to think about before jumping in:

  • How tech-savvy is your team and how fast do you need this up and running?
  • Where in the world are your users going to be?
  • How much money are we talking about flowing through your marketplace?
  • What special payment features does your marketplace absolutely need?
  • Think big - how much do you plan to grow? 📈

If you're just starting out, Stripe Connect is probably your best bet. It's got everything you need, it's super easy to set up, and it'll grow with you. Unless you've got some really specific needs that another provider handles better, Stripe Connect is your fastest ticket to getting those payments flowing!

Want to see exactly how to set up Stripe for marketplaces? No worries - I've got you covered! Just check out the video above for a step-by-step guide. 🎥