The significance of smooth payment solutions in the dynamic world of e-commerce cannot be emphasized. Online markets will still have a significant impact on how we buy, sell, and do business in 2024. Businesses need dependable and effective payment solutions in order to meet the expectations of this fast-paced market. We’ll examine the best online marketplace payment solutions in this post in 2024 so you can make wise choices and keep a step ahead of the competition.
How Do Marketplace Payments Work
Traditional e-commerce payment flows are different from marketplace payments. Any e-commerce website that accepts payments has a fund transfer process that moves money from the customer’s bank account to the merchant’s. Nevertheless, third parties like acquirers and payment gateways are involved in online payment processing.
Regarding marketplace payments, you function as a middleman between consumers and retailers, earning revenue from the fees associated with their exchanges. Payment service providers for online marketplaces, bespoke payment gateways, and wire transfers may all assist in achieving this.
Types of Marketplaces and Platforms
Millions of applications are available in the marketplace. The categories of mobile marketplaces range from the largest ones, such as Amazon, to tiny specialized applications that offer personalized jewelry or courses.
Business-to-Business (B2B)
Businesses (consumers) may make purchases from other companies (vendors), such as manufacturers, wholesalers, or retailers, by connecting them via a B2B marketplace. Businesses may increase the transparency of financial transactions and streamline activities like sales and procurement by using an online marketplace platform to generate orders and conduct transactions.
When using this kind of website, service providers may begin offering their offerings far more quickly than when using other approaches, such developing an e-commerce website or launching a physical shop. They may reach a wider audience and develop new sales channels by using a B2B marketplace.
Business-to-Consumer (B2C)
An app or website that connects merchants and specific consumers is known as a B2C marketplace. A sizable e-commerce marketplace is comparable to a physical shop where customers may discover a wide range of goods from several suppliers. Booking.com, for example, is a business-to-consumer (B2C) network that links thousands of hotels and property owners with tourists worldwide.
Consumer-to-Consumer (C2C), Sometimes Called Peer-to-Peer (P2P)
P2P or C2C marketplaces connect people and provide them a platform to exchange goods and services. These apps and websites bring together individuals who have similar interests and problems.
A P2P marketplace’s primary characteristic is the ability for users to act as both service providers and consumers at the same time. Additionally, customers are able to swap responsibilities based on their requirements. One common characteristic of a P2P platform that sets it apart from B2C and B2B marketplaces is a shorter sales cycle.
Choosing A Marketplace Payment System: Factors To Consider
When choosing the ideal payment gateway for your marketplace, there are a number of things to take into account. The following are some crucial points to remember:
Security
It is what most individuals seek for when making a payment. To ensure that the payment solution will secure sensitive client information, use payment gateways that adhere to industry security requirements such as the Payment Card Industry Data Security Standard (PCI DSS).
User Experience
A successful marketplace depends on providing users with a seamless and simple experience. Select a payment method that reduces the likelihood of cart abandonment by providing a smooth checkout experience.
Payment Methods
Customers may now make payments in ways other than cash. Digital wallets, alternative payment methods, and credit/debit cards are just a few of the various payment options that have surfaced. Select the payment solution that gives the consumer a variety of options for payment ways.
Split Payments
Payments in marketplaces are divided between the platform owner and the vendor. To ensure correct and timely transactions, seek for payment solutions for marketplaces that offer seamless, automatic split payments. This might be a challenging operation to do on your own.
Integration and API Support
The payment gateway need to be seamlessly integrated with the marketplace platform you now use. API support also makes customisation possible and enables smooth system integration.
Best Online Marketplace Payment Solutions
Throughout the globe, there are hundreds of payment options. Most are regional in nature and cater to certain areas and currencies. We’ve selected the top payment methods that are widely used for your multi-vendor marketplace so that you may compare them.
Exactly
The marketplace payment provider provides complete coverage for e-commerce payment processing. One may choose between hosted pages and an API connection with Exactly. In addition to a payment gateway, the service provides worldwide acquiring and payment linkages, as well as bulk and required payment processing. Furthermore, Exactly uses high-security features like tokenization, 3D Secure, and KYC to provide efficient chargeback and dispute settlement.
Stripe
Businesses of all sizes have long used Stripe. It is still a great option for marketplace payment solutions in 2024. Among its many benefits are developer-friendly API, compatibility for more than 135 currencies, and configurable checkout experiences. Stripe also offers strong security features that provide consumers and organizations with peace of mind.
PayPal
One of the most widely used debit electronic payment methods in the American marketplace is PayPal. The business offers consumers the option to pay for products and services digitally, and it has seen a notable increase in the number of mobile settlements.
PayPal’s overall payment volume increased by 10.8% in the second quarter of 2023 when compared to the same period the previous year. The more than six billion transactions that PayPal handled over that time period produced this payment volume.
MANGOPAY
You should certainly check into MANGOPAY if you manage a marketplace since it offers companies operating in Europe and other parts of the globe end-to-end payment processing. For retailers looking for a white-label option, it’s a fantastic option. It accepts a variety of currencies and online payment options. Thanks to MANGOPAY’s compliance with PCI DSS, PSD2, and GDPR requirements, marketplace operators can rely on a highly secure digital environment, a developer-friendly API, and a useful dashboard.
Tipalti
With its worldwide partner payments software, Tipalti offers an online marketplace payment solution that can be used to handle payables and make online payments. It can also be integrated with your accounting software or ERP system. The Tipalti financial automation software may be utilized as a comprehensive payment solution for your company when it comes to paying all of its suppliers, in addition to addressing the demands of paying your marketplace partners.
Conclusion
The greatest marketplace payment option is the one that most closely fits your company’s objectives. For instance, if your goal is to expand internationally, your decision-making process will be heavily influenced by multi-currency and language capabilities, as well as localized compliance knowledge.
Payment solution providers with robust security measures and tailored pricing for big volume suppliers may be your best option, regardless of your area of expertise.
