Network marketing has reached a new level and the emergence of numerous marketplaces has forced it to handle a huge number of payments. Conventional types of payment systems can’t cope with such volumes of work, so the market offers new solutions.
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How to Select the Best Payment Company?
To begin with, we note that there are two variants of the marketplace. Single vendor type tells us that all buyers pay only one seller. All he needs to do is give the buyer payment details. If to say in an easy way, for multi-vendor kind of marketplaces, payments go between multiple buyers and multiple sellers. Also here, buyers can buy from many vendors at the same time.
Each marketplace has its personal business targets. Therefore, you need to find out which payment system providers are right for your concrete business model. It is best to consider these three criteria to make the right choice:
- Determine the main functions that you need from the payment solution. Whether they suit your needs and could meet all your requirements. It has security standards to become first in your selection criteria; you may get support for multiple currencies.
- Check if the payment company is available in your market area. You simply can’t use services that don’t work in your target markets.
- Think about how you can involve the payment system in your trading platform. Most vendors work with SDKs and APIs, but you need to be aware of the integration costs involved.
Experienced owners of trading platforms are advised to contact the managers of each ploy system to discuss the details of cooperation. A team of experts will tell you why to choose their system and how your business will benefit from such a deal. Your business is authentic, so each payment system will have pros and cons specifically for your trading platform.
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5 Top Payment Companies for Marketplaces
There are more than a hundred payment systems in the world that can be regional or local. Most are local; they serve a certain number of regions and currencies. We have chosen the top 5 payment solutions because we considered these types as the most reliable providers for marketplaces.
PayPal payment corporation is one of the very first and most reliable. But for marketplaces, it began to work quite recently. You can transfer money all over the world even without an account. In case of suspicious activity, the profile can be blocked; the security inside the system is very high. The design page is very simple because the system has the most simplified interface.
In Stripe, the seller here is a registered person. The company offers to make payments with the highest level of security and confidentiality. The features of such a system are compliance with laws, working with taxes, the reliability of each transaction, managing returns, and so on. If you choose Stripe for your marketplace, then this is beneficial because part of the financial responsibility will be on your sellers.
Dwolla, an American company is different from all those that we took on our list. We can say that this payment system is an intermediary between American banks. The system does not support international transactions and only works with US users. Distinctive features are low fees and a free trial. Of the minuses, one can name a long time for executing transactions (1-2 days).
MangoPay payment company operates in more than 120 countries and has an individual payment flow. It is an excellent decision for marketplaces and various Internet market platforms. If your business is focused on the international market, then such a payment system could become an appropriate option for you. You can perform real-time monitoring to keep track of all financial transactions taking place in your market. It will also be easy for you to view payment reports through the Mangopay control panel. But you cannot check to see if this payment system is corresponding to your particular marketplace. Also, this system does not have a free trial.
Braintree was an independent wholesale company that became a subsidiary of PayPal. Here you can integrate with PayPal users to make payment transactions. It is very handy for those who do not want to open accounts in several systems. Braintree supports more than 100 currencies and it will be beneficial for your marketplace (raise your chances of profit because buyers can pay in different currencies). But not all customers are happy with this, they say that there is a low level of transaction protection.
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The choice of a payment system is an individual decision for each owner of the marketplace. We considered these 5 systems as the most popular among the owners of large marketplaces and small virtual stores. It is important that the payment system meets all your business requirements and guarantees the security of each transaction.
I hope this tutorial helped you to know about How to Operate with Marketplace Payments. If you want to say anything, let us know through the comment sections. If you like this article, please share it and follow WhatVwant on Facebook, Twitter, and YouTube for more Technical tips.
How to Operate with Marketplace Payments – FAQs
What is a Payment Company?
A payment processing company serves as the conduit between a customer and a merchant. It handles the financial backhaul required to get money from a customer’s payment source.
What are the 4 types of payments?
The 4 payment types are Cash(Bills and Change), Personal Cheque(US check), Debit Card, and Credit Card.
What is MangoPay on my bank statement?
If MangoPay appears on your bank statement, it’s most likely because you’ve made a payment on a website or app operated by one of their clients.
How does stripes payment work?
The customer provides their card information, either online or in person. Those card details enter Stripe’s payment gateway, which encrypts the data. Stripe sends that data to the acquirer, which is a bank that will process the transaction on the merchant’s behalf.
What is Dwolla used for?
Dwolla enables businesses to accept ACH payments, an alternative to paying with cash, credit, debit, or check. Customers can electronically transfer funds directly from their bank account into your business bank account and you can send ACH payments back to your customers for credits and refunds.