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Forrester: Business Impact of Stripe Connect

By: Stripe
Stripe

Payments are essential to the success of marketplaces and platforms that connect buyers to sellers, where transactions are a critical component of customers’ satisfaction. Sellers seek fast and flexible payouts, while both sellers and buyers look for an integrated and seamless experience. With the increasing complexity of multi-party transactions on platforms, these expectations are difficult to meet.

Stripe commissioned Forrester Consulting to conduct a Total Economic Impact™ (TEI) study and examine the potential return on investment (ROI) enterprises may realize by deploying Stripe Connect, an offering that allows marketplaces and platforms to accept payments from and send payouts to third parties.

Forrester’s interviews with four existing Stripe clients and subsequent financial analysis found that an organization based on these interviewed organizations experienced benefits of $6.1 million over three years versus costs of $1.3 million, adding up to a net present value (NPV) of $4.8 million and an ROI of 364%.

KEY FINDINGS

  • Up to $3.6 million in annual incremental revenue from new platform volume driven by features enabled with Stripe Connect, an up to 10% revenue uplift on average.
  • An average two-week improvement in seller onboarding time, increasing the average annual revenue for new sellers. Up to a 10% increase in annual revenue for new sellers due to faster onboarding enabled with Stripe Connect.
  • Just under $1 million in annual time saved by replacing manual processes, including accounting, finance, developer, and customer support, with Stripe Connect.
  • Up to 67% reduction in expansion costs due to ease of expansion into international markets with Stripe Connect.
  • Unquantified benefits included reduction in compliance risk, reduction in chargeback rates, and improvement in seller conversion rates.

Tags : payment solutions, payment processing, pci compliance, platform as a service (paas), business payment solutions


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Published:  Aug 06, 2019
Length:  23
Type:  White Paper