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Embedded Finance: Stripe helps TikTok get into fintech
The world’s biggest fintech company and the world’s fastest-growing major social media have teamed up.
Social media giant TikTok has made its first move into financial services through a deal with Stripe that allows US users to directly tip US-based content creators on the platform.
Creators will receive 100 per cent of the tip value with payments processed by Stripe.
TikTok’s tipping feature is built on Stripe Connect: Stripe’s platform product that works with a number of companies including Clubhouse, Medium, Nifty Gateway, Patreon, Stir, Substack and Twitter build two-way marketplaces that manage both pay-ins and payouts.
Alex Vogenthaler, Product Lead for Connect and Enterprise at Stripe: “Stripe was built to arm upstart entrepreneurs, and creators are some of the most important today. Stripe’s tools are helping millions of creators and businesses around the world earn money online—exactly what we mean by ‘growing the GDP of the internet’.”
In September TikTok, which is owned by the Chinese internet giant Bytdance, said it hit more than 1 billion global users.
Stripe says across 50 platforms that it powers, more than $10bn has earned to date by creators with the company’s own research showing that 41 per cent are now earning a living wage.