# Compare with Connect

Learn which payouts integration fits your business.

Stripe offers two ways to send money to third parties:

- **Global Payouts**: Send money directly to a recipient’s bank account.
- **Connect payouts**: Stage payouts in a payee balance before paying out to an external account.

The following diagram shows the flow of funds in a Global Payouts integration and a Connect payouts integration. The main difference is that funds must pass through a connected account balance before being paid out to an external account when using a Connect payouts integration.
 (See full diagram at https://docs.stripe.com/global-payouts/compare-with-connect)
## Compare Global Payouts and Connect payouts

|  | Global Payouts | Connect payouts |
| --- | --- | --- |
| Description | Send money directly to the bank account of a third party. | Send money to a dedicated payee balance before making payouts. |
| Fit |  |
| Best for | Businesses that need a payouts-only solution that can be decoupled from payments and want the ability to pay out with only recipients’ email addresses. | Businesses that want a bundled solution for payments and payouts, and want to provide payee tools to track and manage earnings. |
| Use cases | - Insurance claims payouts
- Fintech salary advances and disbursements
- Rebate, warranty, and rewards payouts
- Affiliate payouts
- Marketplaces that use multiple payment processors, have decoupled payments from payouts, or have use cases that need segregation from other funds | - Marketplaces that exclusively use Stripe as their payments processor
- Global financial services and insurance platforms
- Franchises |
| Cadence | One-time or recurring recipients that don’t need to track funds. | Established relationship with frequent, recurring recipients. |
| Funding |  |
| Legal and compliance requirements | Manage your own legal and compliance requirements. If you’re managing your customers’ funds, you might need a Money Transmitter License. | Offload legal and compliance requirements to Stripe using the Stripe Money Transmitter License. |
| Fund from payments revenue | Use revenue splitting to automatically fund from your payments balance. | Use [destination charges](https://docs.stripe.com/connect/destination-charges.md) or [separate charges and transfers](https://docs.stripe.com/connect/separate-charges-and-transfers.md) to fund specific transfers. |
| Fund from other payments processors | Use your external bank account to fund your account from other payment processors. | Use [top-ups](https://docs.stripe.com/connect/top-ups.md) to fund your account from other processors. |
| Payee management |  |
| Payee balance | No balance is maintained on Stripe. Funds go directly to your payee’s payout method. | Maintain a separate balance on Stripe to keep track of money owed to your payees. You can debit your payees for fees, refunds, or a dispute. |
| Risk management: Reverse payouts to payees | Payout reversals aren’t guaranteed. Use payout reversals to recapture funds for an accidental or canceled payout. | Delay payouts as needed and use transfer reversals to recapture funds for an accidental or canceled payout. |
| Payee services |  |
| Payee reports | Use our API to display a history of payouts to your payee. | Use a Stripe-hosted Dashboard or use our embeddable components to build payee reports on your own site or app. |
| Enable merchant services for payees | No merchant services for your payees. | Offer merchant services such as Stripe Capital or Stripe Payments to your payees. |
| Distribute tax forms to payees | Not supported. | Use Stripe Tax to issue 1099 forms to payees. You can send forms to payees with Stripe-hosted components. |

## Other types of payouts

Stripe offers several other types of payouts, depending on your use case:

- [Withdraw your earnings](https://docs.stripe.com/payouts.md) from Stripe by paying them out to your business bank account.
- Allow [platform customers to withdraw their funds](https://docs.stripe.com/connect/payouts-connected-accounts.md).
- Distribute payout capabilities to your users with [Treasury for platforms](https://docs.stripe.com/treasury/connect.md).
- Create and issue branded physical or digital cards to send money with [Issuing](https://docs.stripe.com/issuing.md).