Stripe Connect: Standard vs. Express

Stripe Connect allows platforms to onboard sellers/service providers so they can accept payments through that platform. It offers two main options: Standard and Express accounts. Here’s a breakdown of their differences, followed by why I chose Express for Outclass Hub, an educational platform connecting providers with parents.

Standard vs. Express: The Basics

Standard Connect

• How It Works: In your app, you create new accounts via API or users link existing ones using OAuth to join your platform, then manage them independently at stripe.com. You can provide a link to log them in from your app but they will be redirected to full Stripe dashboard.

• Cost: No per-account fee—Stripe charges users directly (e.g., 2.9% + $0.30 per transaction).

• User Experience: Full Stripe Dashboard—users handle setup, payouts, refunds, and disputes on their own.

• Control: You process payments via API with OAuth scope (e.g., read_write), but they own the account.

• Data: Charges you create appear in their Dashboard and are visible to other platforms they link.

• Catch: Since June 2021, OAuth with read_write scope can’t link accounts already connected to other platforms, blocking access to those accounts.

Express Connect

• How It Works: You create accounts through your app via API and onboard users with a branded flow—accessible only through your platform’s limited Dashboard

• Cost: $2/month per active account—your platform pays, (you can offset cost with fees (e.g., 1% per charge)

• User Experience: Simplified, branded Dashboard—users view earnings and update bank details only by navigating to the Stripe-hosted dashboard from your app, not stripe.com.

• Control: You manage onboarding, payouts, refunds, and compliance.

• Data: Stays within your ecosystem—no external visibility.

• Catch: Higher cost and responsibility as users grow.Key Differences at a Glance

Why Express Fits Outclass Hub

Outclass Hub connects schools, tutors, and after-school centers with parents for kids’ programs, aiming to simplify payments and boost signups. Our providers—often not tech experts—need an onboarding process that’s quick and not intimidating. In the initial stages of our platform, it will be crucial to get providers to sign up so our priority is to make the signup process as simple as possible. After trying both account types using the provided Sandbox, I found express to be simpler for the user. It will allow us to get providers up and running quickly and smoothly.

While $2/month per active provider isn’t ideal, losing signups to Standard’s complexity would probably cost us more in the long run.

Finally, Express lets us manage refunds, payouts, and support so the process will be consistent.