BYO Payments in Multi-Tenant Platforms
Most platforms start simple: one Stripe account, all money flows through it. It works—until you add scale. Different tax rules, client preferences, payout schedules, or the fact that many tenants already have Stripe accounts of their own.
That’s where BYO (bring-your-own) payments comes in: instead of the platform owning every transaction, each tenant connects their Stripe account. The platform orchestrates, but tenants own their money flow.
Why Even Consider BYO?
For tenants, BYO feels natural:
- They keep their brand on receipts.
- They manage their own payouts without waiting on the platform.
- They retain their compliance posture for taxes and disputes.
For the platform, it avoids becoming the global merchant of record—a role that sounds convenient until chargebacks, tax filings, and international payouts pile up.
Connect in Practice
Stripe gives you three lanes for BYO:
- Standard: tenants connect an existing account via OAuth.
- Express: Stripe provides onboarding + a mini dashboard.
- Custom: you own everything, from onboarding UI to support.
I’ve found Standard is the cleanest on-ramp: tenants who already live in Stripe connect in minutes. Express works when you want more fee control. Custom is powerful but heavy—only worth it when vertical-specific UX demands it.
How the Money Flows
The architecture choice matters:
- Direct charges → the tenant’s Stripe account processes the card directly. The platform takes an application fee.
- Destination charges → the platform charges, then routes funds onward.
- Separate charges and transfers → full orchestration flexibility, but more reconciliation pain.
For true BYO, direct charges are the least messy: the platform never “touches” funds, but still earns its fee.
The Hidden Work
BYO isn’t a free pass—it just shifts the weight:
- Onboarding: tenants need a smooth wizard; OAuth alone isn’t enough.
- Webhooks: your DB is only a projection; Stripe is the source of truth.
- Disputes & refunds: tenants own them, but you need to surface events clearly.
- Reconciliation: daily checks are a must—what Stripe says, what your ledger shows.
Without these, you’ll spend more time chasing errors than building features.
When BYO Shines (and When It Doesn’t)
Shines:
- Marketplaces where sellers already run Stripe.
- Agencies or multi-tenant SaaS that want tenants to stay portable.
- Platforms that don’t want tax/compliance liability.
Doesn’t shine:
- Unified storefronts where the brand is the platform.
- Cases where tenants can’t (or won’t) handle onboarding complexity.
- Verticals that demand escrow or milestone-based payouts.
What I’ve Learned So Far
- Start simple. Standard Connect accounts validate demand fast.
- Ledger everything. Keep your own fee + payout records in sync.
- Transparency is trust. Tenants should see exactly what was charged, paid, and taken as a fee.
- Expect churn. Stripe capabilities change—design banners, health states, and retries.
Closing Thought
BYO payments aren’t about saving you work—they’re about designing a system tenants can trust at scale. They keep the money flow clean, brand intact, and compliance where it belongs.
For multi-tenant platforms aiming to be the operating layer, BYO isn’t just a feature—it’s a strategic choice.