By
Tolu Ajiboye
April 8th, 2024
Since today marketplaces using Stripe Connect will be able to send instant payouts to sellers.
Stripe, an ecommerce payments provider, is planning to improve the instant payout feature it uses on the marketplaces due to two promising partnerships with Visa and MasterCard. Thus, Stripe will add Visa Direct and MasterCard Send to its marketplaces.
Mastercard Send is a personal payments service allowing people and businesses transferring funds quickly and securely. Businesses, merchants, governments, non-profit companies, and others can send money to customers and small businesses through a single connection to the Mastercard Send platform. Mastercard offers a new level of convenience and security both for senders and receivers by digitizing personal payments that traditionally used to be handled via cash or check.
“Mastercard Send addresses the need in today’s digital world to enable consumers, businesses, governments and more to send money instantly and securely, through a robust platform that joins all U.S. debit card accounts with one connection,” said Sherri Haymond, executive vice president, Digital Partnerships, Mastercard.
Stripe makes instant payouts available for U.S.-based sellers including drivers, delivery people, errand runners, caregivers, or other contractors. The list of marketplaces running on Stripe Connect includes Postmates, Instacart and iCracked.
Besides, Stripe instant payouts powers Express Pay of Lyft, feature that makes it possible for drivers to quickly cash out the money they make instead of waiting to be paid in cycles. Lyft has paid more than $500 million via Express Pay since its launch. The numbers tell the stories best so it is necessary to underline that more than 50 percent of driver payouts now happen over Express Pay.
“In building instant payouts, we’ve been fortunate to work closely with great partners, including Mastercard,” said Billy Alvarado, chief business officer, Stripe. “Millions of people drive, deliver, provide healthcare or otherwise sell on marketplaces using Stripe. Whether they’re earning a living full-time or doing part-time work, for these people, getting paid a few days faster is a big help.”
There are some other marketplaces that use instant payouts including Care.com, that connects families with caregivers, and goPanache, allowing booking beauty and barber appointments. Instant payouts are convenient as caregivers and barbers can get paid for their work immediately, at any time, seven days a week.
About a week ago, Facebook unveiled a new version of its Messenger platform that now includes some new features, including direct payments via the app. The platform supports most credit cards and payment systems, including MasterCard, Visa, American Express, PayPal, Stripe and Braintree.
Users have just to tap the “Buy Now” link in the chat to make a purchase. The system uses financial data stored in the customers’ Messenger apps. Facebook developers built over 30,000 bots for the messaging platform and many are currently working on applications.
The new option will enable Facebook to monetize Messenger, which is utilized by more than a billion users. In comparison, last year the company accounted for 700 million users.
