The Global Paywall

How Setting Up Global Payments Unify and Divide Us

We are Stella and Amy. We share firsthand stories at the crossroads of tech, business, and culture, helping leaders craft actionable cross-cultural strategies. Together, we bridge cultural divides and bring the world a little closer—one step at a time.

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Disclaimer: This guide provides information based on experience and research. It is not tax or legal advice. Please consult a business attorney or tax accountant familiar with your local regulations before proceeding.

Payments Unify and Divide Us

Payments are an interesting topic. It’s not always obvious how they serve as both a unifying and dividing force in the global economy. Stripe is often considered the biggest payment-management platform in the world, followed closely by PayPal and Adyen. However, that may not be entirely accurate, as WeChat Pay has a significantly larger user base and a vast range of applications in China—and sometimes beyond.

This article is more than just a so-called definitive guide for setting up global payments. It’s also a reflection on the complex payment landscape we navigate today. I am not exaggerating when I say that payment accessibility plays a crucial role in business success, especially for international entrepreneurs.

For readers in countries where setting up payments and launching a business is straightforward—often because Stripe is readily available—you are incredibly fortunate as an entrepreneur or content creator. You have easy access to the essential global payment tools that others must work much harder to obtain.

For those in countries where setting up global payments is more challenging, I hope this article provides the initial guidance you need.

Note: In this article, we will use "Stripe" as a general term to refer to online payment processors. I also use Stripe data and market coverage for analysis to keep things simple, but really, it applies to Stripe and any other payment processor of your choice. The other popular payment processors include PayPal, Adyen, Paddle, and Lemon Squeezy.

The Global Payment Challenge

In today's digital economy, anyone with internet access can build a business that serves customers worldwide. The potential customer base spans continents and borders—but only if you can collect payments from them smoothly.

For entrepreneurs outside Stripe-supported countries, this creates a significant barrier to building a global business. Let's examine this challenge through a couple of real examples:

• Jack, a Taiwan-based content creator, hesitates to write on Substack due to Stripe's lack of support in Taiwan. Unable to access global payments, he opts for a local platform with a limited audience.

• Stephanie built a SaaS application in China but cannot easily collect payments globally. China has a set of entirely different payment systems. Stripe is not supported in mainland China.

• Gina launched an e-commerce store in South Korea but struggles with reliable payment collection due to Stripe unavailability.

The (Stripe) Coverage Gap

To put things into perspective, let’s examine Stripe’s "GDP coverage." This does not refer to the volume of transactions processed by Stripe but rather the share of global GDP represented by the countries it supports. As of 2024, Stripe operates in 46 countries, which collectively account for approximately 65.19% of global GDP—about $71.7 trillion out of an estimated $110 trillion.

In other words, if every transaction were processed online and handled by Stripe, its total addressable market (TAM) would be 65.19% of global GDP. That’s quite impressive.

However, let’s now turn our attention to the remaining 34.81% of global GDP and the countries that Stripe has yet to support.

Countries where Stripe has yet to support

For entrepreneurs in these unsupported countries, accessing the opportunities enabled by a global payments infrastructure often requires jumping through significant hoops—such as incorporating a business overseas and setting up foreign bank accounts. The complexity and cost of these workarounds can be so high that some entrepreneurs abandon their business ideas entirely.

4 Steps to Set Up Global Payments

This guide is relevant for entrepreneurs in both Stripe-supported and Stripe-less countries. Whether you are working in a region where Stripe is available or navigating the complexities of operating from a country without Stripe support, these steps will help you set up a global payment infrastructure.

Step 1: Analyze Your Target Customers

Before selecting a payment processor, clearly define your business needs:

• Are you building an e-commerce business?

• Accepting payments for digital content or sponsorships?

• Setting up a subscription service?

• Paying international suppliers or contractors?

If your primary customers are global rather than local, you need a versatile payment processor recognized worldwide.

Step 2: Tax & Withdrawal Planning

This critical step determines your long-term profitability. Consider:

• Tax obligations: How much tax will you pay when withdrawing funds?

• Withdrawal methods: How will you move money to your local bank account? If you don’t need to move the money back to your local bank account, how would you reinvest/use it?

• Exchange rates and fees: What costs are associated with currency conversion?

This is when you need to consult with local tax professionals who understand the tax implications for setting up global payments. The best arrangement really depends on your scenario. Different strategies work for different regions:

• Companies in mainland China might establish Hong Kong entities (supported by Stripe), accepting higher transaction fees (3.4% + HK$2.35) for easier withdrawals.

• Taiwanese entrepreneurs could benefit from setting up US companies, which despite upfront costs, can offer tax advantages on international income. (Details on foreign income tax exemption limits in Taiwan)

Step 3: Establish an Overseas Business Entity (If Needed)

If Stripe isn't available in your country, you'll need to establish a business entity in a supported region based on your research from Step 2.

Step 4: Open a Business Bank Account

Find a reliable bank with strong online support that can service your new business entity.

Case Study - How to Set Up a US Business and Stripe as a Non-US Resident

For entrepreneurs in unsupported countries, creating a US-based business entity is often the most flexible solution. Here's how:

Step 1: Form a US Company

A popular option is setting up an LLC in Wyoming, Delaware, and Nevada.

Do not just copy and paste. Research and understand:

• different company types in the US

• the pros and cons of an LLC

• the state tax laws in each state(Wyoming, Delaware, and Nevada offer favorable tax treatment and privacy protections for business owners, but you need to learn the details)

Step 2: Use a US Company Formation Agent

The most common way for a non-US resident to form a company is by working with a US company formation agency. For foreign entrepreneurs, these agencies offer expertise and provide a physical US presence for correspondence, handle compliance requirements that might otherwise be difficult to manage from abroad, and receive mail on the owner's behalf.

Approximate cost: $150-$200

1. Choose LLC as your business structure

2. Select your preferred state

3. Name your company

4. Use the formation agent's address as your registered address

5. Specify company structure (typically "One Member" for sole ownership)

6. Provide your email and create an account

7. Enter your personal information

8. Complete payment

Step 3: Obtain a US Phone Number

It’s required for Stripe verification codes and account security. As you build your business, you probably will sign up for more products and services that require a US phone number for verifications.

Providers: Zadarma and Twilio etc.

Cost: Approximately $3/month

Step 4: Obtain an EIN (Employer Identification Number)

What is an EIN?

A federal tax ID required for US business banking and payment services

How to obtain it (you should receive these supporting evidence documents from company formation agency):

1. Download the SS-4 form from the IRS website

2. Complete the form using:

   • Your LLC name and formation date

   • Business address

   • Your phone number as contact

3. Fax the completed form to the IRS at +1-855-641-6935

   • Use an online fax service

4. Wait for IRS response (typically 2-7 business days)

Step 5: Create Your Stripe Account

Once your company is formed and you have your EIN, proceed to Stripe to update your business information.

Step 6: Set Up a US Business Bank Account

Once your company is formed and you have your EIN, you can open a U.S. business bank account. There are many options available. The rule of thumb is to choose a provider that is FDIC-insured and offers easy-to-use online banking.

Recommendations / FAQs

"Can I just use a local payment processor?"

While technically possible, using only local processors limits your growth potential. International customers are often hesitant to use unfamiliar payment systems. For example, ECPay might be popular in Taiwan but unknown to your potential US or European customers, creating friction in your sales process. Also, your local payment processors may have higher failure rate for processing payments for foreign credit cards.

"Aren't there cheaper alternatives? Who can save me most on fees?"

This is often the biggest trap for frugal entrepreneurs: while there are alternative payment providers that offer cheaper fees—many of which directly compete with Stripe in terms of cost—it’s crucial to evaluate whether saving a small amount upfront is truly worth it at this stage of your business.

Whether you’re testing product-market fit (PMF) or simply trying to connect the dots, consider the tradeoff between cost and time. If a cheaper payment processor takes significantly longer to set up compared to Stripe, which offers developer-friendly documentation, what will ultimately save you more time and money in terms of opportunity cost?

Seeking an alternative payment provider just to save a small amount can quickly turn into a pointless digression, especially before your business scales.

Another often-overlooked factor is brand reputation. If you’re selling a subscription product or professional service online, the payment process is one of the most critical steps in your sales funnel. A reliable payment processor plays a key role in ensuring smooth transactions and boosting conversion rates.

"Should I use payment processor’s API or their pre-built payment page?"

In most cases, using a pre-built payment page like Stripe Checkout is the better option. It is significantly easier to implement and maintain compared to building your own payment service using the API. Payment-related behaviors such as switching between plans, processing refunds, and handling cancellations are sensitive and complex.

However, if you require a high level of customization or have specific requirements that cannot be met with their standard features, building a custom payment solution may be necessary.

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