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Stripe launched a new product, Stripe Connect, this week. The major API update will enable marketplaces to expand into a new region and adapt their business model to that geography quickly.
The company has already signed up key marketplaces to use Stripe Connect including Kickstarter, Twitter, and Lyft.
Stripe Connect is priced at 0.5% of transaction volumes and is initially available only US and Canadian marketplaces. It will roll out to other regions in the months ahead.
The service allows marketplace operators to change their business models at any time – something that could prove to be a competitive advantage in these growing, and rapidly changing, industries. On-demand transportation companies, for instance, often have to quickly adapt to various regulatory changes in the markets where they operate. Or sometimes, they enter markets with a business model that’s designed to help them quickly grow their market share, with plans to switch over to another model once they’ve established themselves as the leading provider. Sometimes, however, the businesses are simply trying to open up additional revenue streams which would have otherwise required them to rebuild their financial backend from scratch. And at other times, businesses just want to provide a localized experience in a given market without the hassles involved with doing so.
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