TikTok partners with Stripe to expand creator payments

TikTok has added a Stripe-powered service that allows viewers to directly pay creators.

The video-sharing site's new Creator Next program includes a Tips feature, which creators use to collect and manage earnings via a payment portal and dashboard. TikTok creators previously could collect virtual gifts from viewers only during live videos; the addition allows them to collect payments at any time.

TikTok has also expanded access to its Creator Marketplace, which creators use to connect with third- party brands to sponsor content.

Stripe processes the payments for Tips, and also handles the enrollment. Stripe has signed similar deals with other companies that allow consumers to directly pay creators, including Clubhouse, Medium, Nifty, Gateway, Patreon, Stir, Substack and Twitter.

“Stripe was built to arm upstart entrepreneurs, and creators are some of the most important today," Alex Vogenthaler, product lead for Connect and Enterprise at Stripe, said in a press release. Its deals with video content sites cover 185 countries, Vogenthaler said.

TikTok recently passed 1 billion users, up 45% from July 2020. And nearly 70% of TikTok's users are under 40, an age group that's attractive to retailers and payment companies.

Square in September launched Square x TikTok, which allows merchants to send consumers directly to online stores from videos, advertisements or shopping tabs. The collaboration also lets TikTok For Business users set up an online store via Square.

Walmart, whose bid to acquire TikTok has faced regulatory roadblocks, has partnered with TikTok to produce shoppable livestreams that connect consumers with TikTok creators. TikTok additionally powers an advertising channel for Shopify, enabling consumers to make payments by clicking on ads.