What are the different payment solutions for platforms and marketplaces

The Marketplace has become a perfect opportunity to boost e-commerce sales in recent years. It is a very useful business model for companies, as it allows them to take advantage of sales in the online world. Unlike eCommerce, this model is a kind of online shopping centre. In it, different shops can display their products, offering the customer a wide range of options. And although it seems a relatively new concept, its history dates back to 2012, when it emerged in Latin America. Amazon or Mercado Libre are two great examples of Marketplace.

What is the difference between a Marketplace and an eCommerce?

As the clue we have given you in the introduction, one of the main differences between these business models is that the Marketplace is a kind of online shopping centre, while eCommerce is an independent business and can, at the same time, be part of that platform.

In the case of an online shop, you choose a product on your website, which is sold and shipped by the shop itself. However, in the Marketplace, you can enter the website of a particular shop and select a product that will be sold and shipped by a different shop. That's what we do when we go into Amazon to buy a product. We may select it on their page, but it's also possible that the shop that sells and ships it is a different one.

On the one hand, the eCommerce has its own hosting, needs more initial investment, has less visibility on the internet, its competition may be lower, all profits are for the seller and has the possibility to customise the page. On the other hand, the Marketplace uses a general hosting, requires less initial investment, has greater visibility on the internet, a lot of competition, keeps a commission for every purchase, but not all the profits, and cannot customise their webpage. 

In short, while the Marketplace is an online platform where users can buy products from different brands, an online shop is a company that sells its own products. Now, what payment solutions can we find in Marketplaces? Are they the same ones used by eCommerces?

Payment solutions for Marketplace and platforms

These business models have been around for a long time. Many sellers use them as a springboard to increase their sales. Among their advantages are:

• Increased sales.

• The possibility of creating synergies.

• Improved positioning and visibility.

• Cost reduction.

• Flexibility in payment management.

And yet, in Spain, the Marketplace is still a growing trend. We are going to share with you the payment solutions most used by the large marketplaces:

1. Payment processing and financial distribution platform. It is a solution developed by PayXpert to manage all transaction traffic between partners in its ecosystem, whether they are B2C, B2B or C2C.

It includes popular payment methods, such as POS, and it contains a data source, you will not have to rely on third parties and it contains everything the Marketplace needs in a single integration. This type of solutions are fully compatible with PSD2 and are global for all platforms.

1. Payment gateways. We all use them when we make a purchase over the internet. However, not all users know specifically what this tool consists of. On the one hand, they are the payment method implemented by e-commerce and their main objective is to make it easier for customers to pay through the website. On the other hand, it allows the user to choose the most convenient payment method and provide the data that, as a seller, you request.

In addition to these solutions, the Marketplace also makes great use of these payment methods:

1. WeChat Pay. It helps online commerce to be more visible to Chinese customers and to receive their payments. WeChat is more than a payment solution. It is the most popular social network and mobile app in China, with more than 1 billion active users per month. It is known as the most innovative and versatile application, something like the Chinese App that is suitable for everything.
2. Alipay. It allows you to attract more Chinese customers to your business with fast, easy and smart payments. With this application you can make payments with the mobile phone in a simple way and its main objective is to optimise the way you pay for any type of product or service and offer financial services to users.
3. Apple Pay. It is an easy-to-use system and works with Apple devices. With the use of contactless technology, it is possible to make payments safely on websites, shops or applications. It's usually more convenient and faster than using a card.
4. Google Pay. As the platform itself states, "it is the easiest and fastest way to pay on millions of sites: online and many more. It offers you everything you need to process your purchases and keeps your data safe. In addition, you can manage your account both on the website and the app." 
5. Card payments. Credit, debit or prepaid cards are the most common. In any case, card payment is a widely used method for making payments or getting money. Online businesses can accept payments anytime, anywhere, via mobile phone or POS.

What payment solutions are you using in your business? Are you a Marketplace and would like to enjoy an innovative, convenient and secure solution while meeting all industry standards? Have you thought about opening your business to new international opportunities?

Controlling key business factors is critical to increasing revenue and improving your success rate. Call us and ask all your questions. In PayXpert, we can help you solve them.