What is Stripe Split Payment

Stripe Split Payment is a feature that enables businesses to split incoming payments between multiple parties. This functionality is often used by marketplaces, platforms, or businesses that need to allocate payments to vendors, service providers, or collaborators. Stripe provides tools such as Stripe Connect to implement split payments.

Key Features of Stripe Split Payment:

1. Customizable Payment Allocation: Allows you to specify how funds should be divided between the platform and other recipients (e.g., vendors or partners).
2. Automatic Fee Deduction: Platforms can deduct their service fees automatically before transferring the remaining amount to the recipients.
3. Seamless Transfers: Funds are transferred directly to the connected accounts of recipients without manual intervention.
4. Global Support: Supports payouts to multiple countries, depending on Stripe’s availability in those regions.
5. Compliance: Handles compliance requirements such as tax reporting, KYC (Know Your Customer) checks, and money movement regulations.
6. Real-Time Split Logic: Splits can be configured in real-time during the payment processing.

How it Works:

1. Customer Payment: A customer pays through the platform's Stripe integration.
2. Fund Splitting: Stripe processes the payment and splits the funds according to predefined rules.
3. Payouts:
   • The platform receives its share (e.g., a service fee or commission).
   • The remaining balance is automatically transferred to the connected accounts of vendors or partners.

Use Cases:

• Marketplaces: E-commerce platforms like Etsy or Uber can route payments to multiple sellers or drivers.
• Subscription Models: Platforms that facilitate subscription services with shared revenue.
• Event Ticketing: Ticket sales platforms can split proceeds between organizers and other stakeholders.
• Freelance Platforms: Websites like Upwork, where payments need to be shared between freelancers and the platform.

Tools & APIs:

• Stripe Connect: A set of APIs and tools for integrating split payments.
  • Standard: For simple setups where Stripe manages compliance and account onboarding.
  • Express: For platforms requiring more control over the user experience.
  • Custom: For full control and custom workflows.

For more details, visit Stripe's official Connect documentation.