US marketplace and eBay challenger Bonanza has announced that it will be opening up checkout options on the site and accepting payments via Stripe.
The move comes in the face of user demand and the aim of opening up payments beyond their current PayPal service. In particular Bonanza notes that this development will be attractive to overseas international users, who they are keen to attract. As they say in an announcement:
We know that you, our dedicated sellers, have been interested in offering additional payment providers to your customers. Providing more payment options to buyers often invites a higher rate of conversion. We also know you’ve been seeking a solution that will allow buyers to check out easily with a debit or credit card. In our 2017 Seller Survey, 31% of participating sellers voted to add Stripe to our offerings — 18% more than the next most popular payment provider.
– Reilly, product manager, Bonanza
The Stripe fees for merchants processing payments in the USA are 2.9% + $0.30. Set up is very easy but your first disbursement may take some time because there will be a 7-day verification window while Stripe confirms your bank details. Subsequently, US sellers will be paid on a rolling 2-day schedule. International payments to merchants will vary by location.
To begin with Stripe payments will only be available to merchants with Bonanza Gold membership or higher. They say they want Stripe to be a simple payment solution for sellers so they’ve absorbed the costs associated with offering Stripe into paid memberships and membership costs will not increase
Stripe’s enjoying a period of expansion at the moment and being successfully adopted by marketplaces. (Yesterday we reported that it’s now a new payment method on UK crafts marketplace Folksy.) It processes payments for a number of big tech companies including Twitter, Kickstarter, Shopify, Salesforce and Lyft.