# 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 [Financial Accounts for platforms](https://docs.stripe.com/financial-accounts/connect.md).
- Create and issue branded physical or digital cards to send money with [Issuing](https://docs.stripe.com/issuing.md).