Stripe vs. Tazapay: Which one Is Better for Cross-Border Payments

Tazapay
Aug 3, 2021
3 minutes of read

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Businesses need to carefully assess the challenges brought about by international payments before selecting a cross-border payments provider. There are multiple options available out there, each with its uniqueness and features. Depending on what suits your business requirement as well, a payment provider should be shortlisted.

Today we will evaluate two leading payment solutions Stripe and Tazapay. The evaluation serves to help businesses like you decide what the best fit for your establishment’s cross-border payments is.

Courtesy of eMerchantPay
Courtesy of eMerchantPay

Understanding Stripe

Stripe is a predominantly online payment service provider company that enables payments over the internet. It is an increasingly popular mode of payment in the e-commerce world where people can make and receive payments. Moreover, Stripe is primarily favoured by technologically savvy people like those heavily into coding or companies with in-house programmers. The reason is that Stripe offers customizable tools for development. Hence, it is a favourite pick for small & medium businesses. Still, bigger companies like Lyft, Pinterest, TaskRabbit, and Blue Apron have also shown an interest in the solution.

Stripe’s Escrow Services

When it comes to Escrow Services, Stripe does not support that service directly. Still, it does have the option to hold money for a certain period (up to 90 days) under the holder’s balance until being asked to pay the other party involved. Furthermore, the money is held using the accounts API, and the Pay-outs API is used to make the payment.

Stripe’s Cross Border Pay-outs

This cross-border payments service by Stripe is applicable for the United States customer only. Customers can make payments to freelancers, sellers, content creators, and service providers in their local currencies. However, customers can only transfer funds if the receiver has a connected account with Stripe.

As Stripe's cross-border payment service is still in the beta phase, merchants outside the United States cannot tap on its network to initiate cross-border payments. Hence, merchants would still have to rely on alternative services to fulfil their cross-border payment needs

Understanding Tazapay

Tazapay is an Escrow Service provider primarily designed to keep cross-border payments in mind. It is the ideal payment provider for traders, exporters, importers, marketplaces, and trade partners. It is a regulated payments partner as funds are safely handled by an institution licensed and regulated by the MAS (Monetary Authority of Singapore), Rapyd. As per the regulatory directives of MAS, the funds of the customer remain protected with a Singapore-based authorized bank.

Tazapay’s Escrow Services

Tazapay is principally an Escrow Service provider. It is a great way to protect your funds regardless of whether you are making the payment or about to receive it. Additionally, Tazapay escrow is an easy and simple payments service that offers security to both the buyer and the seller who is a part of the transaction. How an escrow services provider works is that they hold the buyer's money until the seller completes their end of the deal. Once the contractual obligations are fulfilled, they release the funds to the seller – this can be just by verifying the shipment proof.

Steps involved in Tazapay’s escrow:

  • The seller initiates an escrow request to the buyer by providing transaction details.
  • The buyer will be required to create an account in order to accept the escrow payment request.
  • The buyer will transfer the payment as per the invoice amount to Tazapay, who will then secure the funds until order fulfilment.
  • Seller will produce proof of shipment or service delivery proof indicating that the responsibility from their end is fulfilled.
  • Tazapay authenticates documents in accordance with the agreement.
  • Once the verification is satisfactory, Tazapay releases the payment, which the seller gets within 48 hours.

Tazapay’s Cross border Pay-Outs

Apart from being technologically advanced, Tazapay also offers operational support to the parties involved. In this case, both the parties stay protected:

The importer is safeguarded against any shipment delays or service cancellations. The advance payment is fully secured until contractual obligations are fulfilled. Tazapay enables accessibility to new sellers and markets for business growth by doing a compliance check and verifying the seller's identity.

For the seller's protection, full and timely payment is ensured by ensuring timely support from Tazapay. Hence, it creates a network of trust between the seller and the buyer, which increases sales.

The reason this is preferred is that cross-border trade has more uncertainty attached to it. You are not from the same country, with different legal requirements and regulatory environments. Tazapay considers all these aspects while securing, receiving, and making payments.

While Stripe is a great and popular service provider in the B2C space, Tazapay's expertise lies in the B2B cross-border payments domain. Stripe is a more plug-and-play type of solution. Tazapay, on the other hand, offers additional support like conducting verification checks on trade partners to ensure that one deals with only verified partners across the world.

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B2B Payment

Stripe vs. Tazapay: Which one Is Better for Cross-Border Payments

Aug 3, 2021
3 min of read