What characterizes onboarding in Stripe Connect?

• A. It involves creating a connected account tied to the platform account
• B. It only creates a connected account; no further linkage
• C. It is optional for all connected accounts
• D. It is performed automatically by Stripe without platform involvement

Answer: (A)

Onboarding in Stripe Connect is the process of creating a connected account and tying it to the platform account so the platform can manage payments and route funds. That linkage is what allows the platform to control payout flows, apply its own rules, and handle verification and compliance for the connected user. The onboarding flow guides the connected account through necessary steps like business details, identity verification, and bank payout setup, so the account can be activated for live payments. It isn’t just about creating an account in isolation, and it isn’t automatically done by Stripe without the platform’s involvement—the platform initiates and can customize the onboarding experience.