One factor contributing to the growth of marketplace setups is payment solutions. The payment solution you choose can either help you expand your business or minimize the returns. That is why it is significant to put into consideration the payment solutions for your marketplace to have a positive global impact. After all, your target will be to grow your marketplace business to extreme heights. A good example here is the Uber business. It attained global growth immediately after it started using Braintree. Therefore, based on the dimensions of your business, you should do the research and go for the solution that will have a better impact on your business.

There is no doubt that different online marketplace setups have their own share of challenges when it comes to offering viable payment solutions. In this guide, we will give you constructive insights on the best payment marketplace solutions to enable you to select one that is suitable for your business.

Types of marketplace businesses you should know

Before we highlight the best payment solutions for marketplace businesses, let us highlight the different models of marketplaces to help you understand the different dimensions of payment solutions.

We have two main forms of online marketplaces; single-vendor and multi-vendor platforms. As the name suggests, the difference depends on the number of people depending on the platform. The type of your marketplace, whether a single-vendor or a multi-vendor, is what defines the payment solution and the best accounting software for your business.

It is quite complex to process payments on a multi-vendor platform because of the many people or businesses depending on the website as compared to processing the payments for a single-vendor marketplace. Since a single-vendor platform has one supplier receiving payments from all the clients, it becomes easy to set up the required details to receive the payments.

On multi-vendor platforms, processing the payments is challenging because the platform hosts many sellers having different bank details. Besides, with multi-vendor platforms, clients can buy from different dealers at the same time.

Understanding a payment solution

Also known as payment gateway, payment solutions help you manage the payments in your eCommerce platform faster and in a flexible manner to ease the processes. The processes include the following stages:

• The client keying in the payment details – card number, date of expiry, and related information
• Creation of an order (the website or platform sends the detail t the payment solution
• The payment solution sends the request to the company that gave the client the credit card.
• The payment solution gets the confirmation to authorize the payment
• The payment solution sends the money to the merchant

Why the payment solution process is significant

Online marketplaces payment solutions have one main objective: to handle transactions from different people with ease and to prevent the following risks or challenges involved:

• Preventing fraud
• Giving the merchants their appropriate share of the transactions
• Managing several marketplace transactions

Therefore, as you choose your preferred payment solution, you should consider one that is flexible with the above elements.

Things to note before selecting the best marketplace payment solution

While doing research to choose the best marketplace payment solution, take note of the following:

• Supported Payment Methods

A payment solution you choose should match the interests of your target users. For instance, a solution accepting both debit and credit cards will enable your business to expand globally. Just make sure you know what your clients want.

• Target Region Coverage

Some payment solutions have restrictions based on locations. Therefore, select a solution that supports the region and countries you target to extend your services.

• Security

Before using any payment solutions, your clients will look into matters to do with security first. Therefore, ensure your payment solution guarantee top-level security for your clients, especially with their personal information.

• Ease of Integration Process

Take note because some payment solutions will require expert developer knowledge to integrate your marketplace platform. Therefore, choosing a payment solution, you can integrate easily will save you extra costs.

• Payment Speed

Of course, a payment solution that is faster enhances a good user experience, hence more customers. It is better to select a payment solution that finishes the transactions within a day than a payment solution that finishes transaction processes after 72 hours.

Best Marketplace payment solutions you should consider

• Dwolla

With Dwolla, you can achieve ecommerce and mobile platforms transactions with ease. The payment solution has an advanced automated cleaning house feature to serve American marketplaces. The ACH enhances easy access and control of bank transactions.

Although it comes at a fee, this payment solution serves two-sided marketplaces.

The key features of Dwolla include the following:

• Improved security with PCI DSS
• ACH-enabled for easy US dollar transfer
• Automatic huge transactions
• Ease of use

Note: To use Dwolla as your marketplace payment solution, all users must register the solution in the USA.

• PayPal

This is among the oldest and the most common payment solution for many marketplaces. Some of the reasons making PayPal among the best payment solutions include the following:

Better security – the clients don’t need to display their credit card details for security purposes

Availability- Operating in 161 countries, PayPal is the best payment solution, especially if your business has a global impact.

The payment solution also has two-sided marketplace features, thus serving you widely.

• Braintree

Braintree is among the top mobile apps and ecommerce platforms. Available in 46 regions, this Braintree option will give you split payments feature, which enables you to divide the fee equally among the users (merchants and the marketplace owner).

The benefits of Braintree include the following:

Easy to integrate with PayPal, so you shouldn’t worry if you have PayPal clients.

The payment solution is up-to-date with the latest technology and hence has high features that promote security.

• Exactly®

Here is another marketplace payment solution offering a total ecommerce payment processing solution. You will enjoy the use of payment links, a global approach, and mass payment solutions.

Through Exactly®, your business can transact different currencies with ease.

The major benefits of Exactly® include the following:

• Accepting more than 150 currencies
• A wide range of pricing options
• User-friendly for all customers
• Easy to set up the platform

• MANGOPAY

As a marketplace owner, MANGOPAY is among the best payment solutions you should consider. You will get end-to-end payment processing if your business is in Europe and across the world. MANGOPAY supports several currencies, and it is the best option, especially if you want white-label solutions.

Marketplace Payment Trends

The top payment solutions play a significant role in determining the future of marketplaces. As a marketplace owner, it is significant to be updated with the following trends.

• E-wallets

These are digitalized wallets that keep the user’s payment methods details, such as bank information and debit/credit card details. With e-wallets, marketplaces can get their payments through the selected POS means.

• QR-code payments

QR-code payments offer a secure and sure way for customers to make payments by scanning a QR code using a smart gadget. The process is completed automatically.

• Pay by link

Here, the marketplace and sellers only need to create personalized links, then send these links to respective customers to finish the payment and transaction processes.

Conclusion

Are you planning to set up your marketplace? Or do you have a marketplace business and struggling with the best marketplace payment solutions to consider? There are many options available in the market. You only need to define the nature of your business and potential clients to select a method that will favor your business and your clients at large.

Looking for marketplace payment solutions? Connect with our marketplace development company : Aalpha information systems.