The digital payments platform, Stripe, recently launched a payouts feature that allows participating marketplaces to send instant payouts to their sellers.
Stripe is an internet payments service designed for online and e-comemrce business looking for a simple-to-use API. Powered by Visa Direct, Stripe’s new features allows merchants to send money to employees, contractors, suppliers, etc.
Visa has been aggressively pursuing the mobile and online payments market for the past few years through several initiatives. Multiple marketplaces are already taking advantage of the upgrade, including Lyft, Care.com and the beauty services platform goPanache.
“We’ve worked closely with our partners, including Visa, to launch Instant Payouts,” said Billy Alvarado, chief Business Officer at Stripe, in a statement. “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.”
Stripe Instant Payouts is now available to the American market but will shortly expand around the world to include Ingo Money, Square, TD Bank, Early Warning, Fiserv and PayPal.
Stripe announced the integration this past week on its company blog. Lyft was the first platform to integrate Instant Payouts last November and has since dispatched over $500 million to drivers using the service.
“Unlike traditional bank transfers that can take several days, Instant Payouts are deposited and available in just minutes. This way, marketplaces can give service providers a much better product experience by sending them their earnings faster than ever — and greater flexibility and control over when they get paid,” wrote Stripe’s Dave Coen wrote in the blog post.
Instant payouts can currently be accessed by over 200 million Visa debit cards in the United States, as well as non-Visa debit cards by transferring them into the customer’s bank account linked to their debit card without the need for account number and routing code details.
Information about Stripe’s and Visa’s plans to expand Instant Payouts has yet to be released.
Related: Visa Canada debuts innovative payments and commerce technology at TIFF
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