> ## Documentation Index
> Fetch the complete documentation index at: https://billing-docs.razi.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Payment Flow with Stripe

> Learn how to implement the payment flow using Stripe

<Warning>
  The user authentication in all the flows related to the billing API is handled by the client backend app in same way in <Link href="/tutorials/authentication-and-plans">Authentication and Plans</Link>.
</Warning>

# Payment Flow with Stripe

This guide explains how to implement the payment flow using Stripe and the Billing SDK.

## Setting Up Stripe Payment

<img src="https://mintlify.s3-us-west-1.amazonaws.com/locai-6a77a221/images/Payment-with-stripe.png" alt="Payment Flow" />

<Steps>
  <Step title="Client Initiates Payment Intent">
    The client uses the <Link href="/sdk/hooks/useCreatePaymentIntent">useCreatePaymentIntent</Link> hook to initiate a payment intent, forwarding the request to the Billing API.
  </Step>

  <Step title="Billing API Checks Customer">
    The Billing API checks if the customer exists in Lago. If yes, it returns the customer information; if not, it creates a new customer and returns the information.
  </Step>

  <Step title="Forward Customer Info to Stripe">
    The Billing API forwards the customer information to Stripe.
  </Step>

  <Step title="Stripe Returns Secret">
    If the information is valid, Stripe returns a secret which is passed back to the client UI.
  </Step>

  <Step title="Render Embedded Checkout Form">
    The client UI renders the <Link href="/sdk/components/EmbeddedCheckoutForm"> EmbeddedCheckoutForm </Link> from the Billing SDK.
  </Step>

  <Step title="User Completes Payment">
    The user fills in the required information. This information, along with the secret, is sent to Stripe, which then redirects the client to the success/failure page.
  </Step>

  <Step title="Stripe Callback to Billing API">
    Once the flow completes, Stripe returns the payment information to the Billing API via a callback URL.
  </Step>

  <Step title="Update Subscription in Lago">
    Based on the information from Stripe, the Billing API creates or updates the subscription in Lago.
  </Step>
</Steps>