# Understand differences between Global Payouts and Connect cross-border payouts

Learn which payouts integration fits your business model.

Stripe offers multiple ways to send payouts to third parties:

- **Global Payouts**: Send payouts directly from your platform’s *financial account* (You can use a financial account to store, transfer, convert, or spend funds) to recipients’ external bank accounts, debit cards, or crypto wallets. Funds come from your financial account balance, and aren’t directly associated with payments. Recipients can be any external party.
- **Connect payouts**: Send payouts from your connected accounts’ Stripe balances to their external bank accounts or debit cards. (If your platform is in the US, you can request access to the [crypto payouts private preview](https://docs.stripe.com/connect/stablecoin-payouts.md).) Stripe handles licensing requirements, and your platform isn’t part of the payout funds flow.

## Compare Global Payouts and Connect payouts

Use the following table to compare how each integration handles compliance, recipients, risk, and ledgering.

|  | Global Payouts | Connect payouts |
| --- | --- | --- |
| Payout funds flow | Directly from the sender’s Stripe financial account to an external account, without passing through a recipient Stripe balance. See the [Global Payouts overview](https://docs.stripe.com/global-payouts.md). | Following a payment to the platform, from the platform’s Stripe balance to a connected account’s Stripe balance, then to the connected account’s external account. See [Connect cross-border payouts](https://docs.stripe.com/connect/connect-cross-border-payouts.md). |
| Business fit | - Businesses that pay recipients directly.
- Marketplaces that have the necessary Money Transmitter Licenses (MTLs), have payout use cases that Connect doesn’t support, or that have decoupled payments from payouts. | Other types of Connect marketplaces. |
| Recipients can be any entity with a valid external account. | Recipients must be connected accounts. |
| Legal and compliance | Fund payouts from your bank account, which is part of the flow of payout funds. | Fund payouts from your payments. Your platform’s balance is part of the flow of payment funds but not the flow of payout funds. |
| If you manage your customers’ funds, you might need a license such as an MTL. | Covered by Stripe’s licensing. |
| Recipient services | Recipients only need to provide a few pieces of information in order to receive payouts to bank accounts, debit cards, or crypto wallets. | Recipients must have completed know your customer (KYC) and anti-money laundering (AML) onboarding as connected accounts, with a bank account or debit card. For US platforms in the [crypto payouts private preview](https://docs.stripe.com/connect/stablecoin-payouts.md), connected accounts must use the [Express Dashboard](https://docs.stripe.com/connect/express-dashboard.md) to add crypto wallets. |
| Payouts to debit cards and crypto wallets typically arrive within minutes. | Normally, funds accumulate in a connected account’s Stripe balance and are paid out on a regular schedule. You can make [manual payouts](https://docs.stripe.com/connect/manual-payouts.md), but must understand and follow regional regulations. If you want to make payout funds available immediately after the associated payment, you must use manual payouts and [instant payouts](https://docs.stripe.com/connect/instant-payouts.md). |
| Your platform is responsible for managing the entire payout process. | You can provide connected accounts with tools to manage their payouts and funds, such as the [Express Dashboard](https://docs.stripe.com/connect/express-dashboard.md) and [Connect embedded components](https://docs.stripe.com/connect/get-started-connect-embedded-components.md). |
| [Generate 1099 forms for US recipients](https://docs.stripe.com/global-payouts/tax-reporting.md). | [Generate 1099 forms for US connected accounts](https://docs.stripe.com/connect/tax-reporting.md). |
| Risk | You can only [cancel a payout](https://docs.stripe.com/global-payouts/manage-payouts.md#cancel-or-reverse-a-payout) while it’s in progress. Only certain payout types support payout reversals, and reversals aren’t guaranteed. To request reversing an eligible completed payout, you must contact Stripe support within 24 hours. | Manage risk by reviewing payments before the next scheduled payout after [the funds settle](https://docs.stripe.com/payouts.md#standard-payout-timing). Define a schedule that allows enough time for review. If your platform is responsible for connected account negative balances, you can [reverse a payout](https://docs.stripe.com/connect/payout-reversals.md). |
| Ledgering | Payouts don’t flow through a Stripe balance belonging to the recipient, so you’re responsible for any desired tracking of recipient funds. | Payouts flow through [the recipient’s Stripe balance](https://docs.stripe.com/connect/account-balances.md), which you can track using [Connect reports](https://docs.stripe.com/connect/dashboard/understand-your-connect-business.md). |