Stripe Connect has become the default payment infrastructure for marketplace startups — and for good reason. It’s well-documented, widely supported by marketplace builders like Sharetribe, and handles the complex payment splitting that two-sided platforms require.
But “default” doesn’t always mean “best fit.” Depending on your geography, transaction volume, seller base, regulatory environment, or specific payment requirements, a Stripe Connect alternative might serve your marketplace better.
Here’s an honest look at the leading alternatives and when each one makes sense.
Why Marketplace Founders Look Beyond Stripe Connect
Before diving into alternatives, it helps to understand the common reasons marketplaces outgrow or bypass Stripe Connect:
Geographic limitations. While Stripe operates in 47+ countries, it doesn’t cover every market. If your sellers or buyers are concentrated in regions where Stripe has limited support, you’ll need an alternative.
Cost at scale. Stripe Connect’s pricing is competitive for early-stage marketplaces, but the layered fee structure — processing fees, Connect fees, cross-border transfers, instant payouts — can become expensive at volume. Larger marketplaces often negotiate better rates elsewhere.
Payout flexibility. Some marketplaces need payment methods Stripe doesn’t support well — bank-to-bank transfers in specific regions, digital wallets popular in certain countries, or payout methods tailored to specific seller demographics.
Compliance requirements. Regulated industries (financial services, healthcare, gambling) may need payment infrastructure with specific licensing or compliance capabilities that Stripe Connect doesn’t provide out of the box.
Escrow and payment scheduling. While Stripe Connect can hold funds, some marketplaces need more sophisticated escrow, milestone-based payments, or complex disbursement schedules that purpose-built alternatives handle more natively.
The Alternatives
1. Mangopay
Mangopay is a European payment infrastructure provider built specifically for marketplaces and platforms. It’s one of the few payment solutions that was designed from the ground up for two-sided payment flows.
What sets it apart:
- Purpose-built for marketplaces. Mangopay’s entire product is oriented around marketplace payment flows — escrow wallets, split payments, and multi-party disbursements are core features, not add-ons.
- Strong in Europe. Mangopay has deep European payment method coverage and regulatory compliance. If your marketplace operates primarily in the EU, Mangopay’s local payment method support is a significant advantage.
- E-wallet infrastructure. Every user (buyer and seller) gets a digital wallet, which enables features like stored balances, wallet-to-wallet transfers, and instant payouts within the platform.
Considerations:
- Weaker than Stripe in the US market
- Smaller developer ecosystem and fewer third-party integrations
- Documentation isn’t as polished as Stripe’s
Best for: European marketplaces that need deep local payment method support and native escrow functionality.
2. Adyen for Platforms
Adyen is a global payment company that processes payments for some of the largest marketplaces in the world, including eBay, Etsy, and Uber. Their “Adyen for Platforms” product is the marketplace-specific offering.
What sets it apart:
- Enterprise scale. If you’re processing serious volume (millions of transactions), Adyen’s infrastructure and pricing become increasingly competitive. They’re built for scale.
- Global payment methods. Adyen supports 250+ payment methods across virtually every geography. If your marketplace operates globally, Adyen’s breadth of local payment methods is unmatched.
- Unified commerce. If your marketplace has both online and in-person components, Adyen offers a single platform for both — including point-of-sale terminals.
Considerations:
- Not built for small or early-stage marketplaces. Adyen’s minimum volume requirements and onboarding process are geared toward established businesses.
- More complex integration than Stripe. The developer experience, while good, isn’t as streamlined for quick MVP launches.
- Pricing is quote-based and not publicly transparent, making it harder to model costs upfront.
Best for: Growth-stage and enterprise marketplaces processing high volume that need global payment method coverage and competitive pricing at scale.
3. PayPal for Marketplaces
PayPal Commerce Platform offers marketplace payment capabilities through its Commerce Platform product. Given PayPal’s installed base of hundreds of millions of accounts, it provides a unique advantage: buyer trust and familiarity.
What sets it apart:
- Buyer trust. PayPal is one of the most recognized and trusted payment brands globally. Offering PayPal as a payment option can increase conversion rates, especially for marketplaces where buyers are wary of transacting with unknown sellers.
- Buyer and seller protection. PayPal’s built-in buyer protection program and seller protection against chargebacks can simplify your marketplace’s trust infrastructure.
- Pay Later options. PayPal’s installment payment products (Pay in 4, PayPal Credit) give buyers financing options without additional integration work.
Considerations:
- Seller experience is less customizable than Stripe Connect or Mangopay
- Fee structure can be complex, with different rates for different payment methods and regions
- Less developer-friendly API compared to Stripe
Best for: Consumer marketplaces where buyer trust and conversion matter most, particularly in categories where buyers hesitate to pay unknown sellers.
4. Ryft
Ryft is a newer UK-based payment platform built specifically for marketplaces and platforms. It focuses on simplifying marketplace payments with transparent pricing and fast integration.
What sets it apart:
- Simple, transparent pricing. Ryft publishes clear per-transaction pricing without the layered fee complexity of some alternatives.
- Fast onboarding. Designed for marketplaces that want to get payment infrastructure running quickly without extensive engineering work.
- UK and European focus. Strong local payment method support for UK and EU marketplaces.
Considerations:
- Smaller company with less track record than Stripe, Adyen, or PayPal
- Limited geographic coverage compared to global providers
- Fewer advanced features for complex payment flows
Best for: UK and European marketplace startups that want straightforward pricing and fast integration.
5. LemonSqueezy / Paddle (for Digital Marketplaces)
For digital-only marketplaces — where the product being sold is software, digital downloads, courses, or subscriptions — merchant-of-record platforms like LemonSqueezy and Paddle handle payments differently. They act as the seller of record, managing all tax compliance (including global VAT/sales tax) on your behalf.
What sets them apart:
- Tax compliance handled. Global VAT, sales tax, and invoicing managed automatically. For digital marketplaces selling across borders, this removes a massive compliance burden.
- Simplified seller payments. Because the platform is the merchant of record, seller payouts are simpler — there’s no need for individual seller KYC/KYB in most cases.
Considerations:
- Not suitable for physical goods, services, or traditional marketplace models
- Higher effective fees due to the merchant-of-record structure
- Less flexibility in customizing the checkout experience
Best for: Digital-only marketplaces where global tax compliance is a significant concern.
How to Choose
The right Stripe Connect alternative depends on where you are in your journey:
| Stage | Recommendation |
|---|---|
| Pre-launch / MVP | Stick with Stripe Connect. The developer experience and integration with marketplace builders like Sharetribe make it the fastest path to processing payments. |
| Growing in Europe | Evaluate Mangopay for European payment method coverage and native escrow. |
| Scaling globally | Look at Adyen for breadth of payment methods and volume-based pricing. |
| Consumer trust matters | Add PayPal as a payment option alongside your primary provider. |
| Digital-only products | Consider merchant-of-record platforms for tax compliance simplification. |
Many mature marketplaces don’t pick just one provider. They use Stripe Connect as their primary payment rail and add PayPal for buyer trust, or they start with Stripe and migrate to Adyen as they scale internationally.
What Stays Constant: You Need to Track the Economics
Whichever payment provider you choose, understanding how payment processing costs affect your marketplace economics is critical. Your take rate might look healthy on paper, but once you subtract processing fees, cross-border transfer costs, dispute fees, and instant payout charges, the picture can look very different.
Track your effective take rate — the commission you actually retain after all payment costs. Monitor how this changes as your transaction volume, geographic mix, and payment method mix evolve.
How Twosided Helps You Stay on Top of Payment Economics
Twosided integrates directly with Stripe Connect and provides 150+ marketplace metrics out of the box — including take rate, GMV, revenue per transaction, and unit economics that account for the full cost of each transaction.
Whether you’re on Stripe Connect, evaluating alternatives, or running multiple payment providers in parallel, Twosided gives you the analytics layer to understand what’s actually happening in your marketplace’s economics. Connect in five minutes and see the numbers that matter.