Amazon and Etsy are probably the biggest sources of inspiration as they introduced the world to a new era of shopping, and improved means of connecting the buyers and sellers. With large, vertical marketplaces sprouting up and proving themselves to be wildly successful, no doubt, marketplace economy is booming, and there’s no better time to create a multi-vendor marketplace website for your business. Speedy and secure payments promotion are the secret keys to run these booming marketplaces efficiently.
Marketplaces have their unique challenge of paying to hundreds & thousands of vendors. For a marketplace owner, it is difficult to build an entire ecosystem for paying their vendors and managing things like securing the payment system, integrating multiple payment gateways, paying the vendors after cutting their share, and also maintaining payments to different bank accounts of vendors.
Today, many companies provide the marketplace startups with an easy way to handle payments and manage all the challenges of marketplaces. But, the dilemma is that which one is the best? More importantly, which payment gateway is best suitable for your venture in particular?
In this article, we’ll be discussing the top payment gateways that provide payment services for marketplaces so you can choose the right one for your marketplace website.
PayPal for Marketplace
It is a leading payment system for crowdfunding platforms, marketplaces, and other environments where people buy and sell goods and services or raise money. It is an ideal solution for those who run a multivendor marketplace platform and want a flexible, end-to-end solution for processing payments.
Features:
- PayPal for Marketplaces enables merchants to accept payments in up to 25 currencies across the globe.
- Customers can pay via credit or debit cards, local payment methods, or PayPal wallet payments.
- PayPal has a streamlined process which helps merchants to accept payments quickly
- PayPal manages the risk inherent in the processing of online payments.
PayPal for Marketplaces offers two types of integration paths:
- The Connected path, where all the PayPal merchants must have PayPal Business accounts and PayPal holds responsibility for any kind of fraud and merchant management.
- The Managed path, where PayPal handles payment processing and the partner controls the things like customer experience, handles disputes, and assuming transaction risk. Merchants aren’t required to have PayPal Business accounts.
Stripe Connect
Stripe is another leading company providing technical infrastructure for operating online payment system. Stripe Connect is a crowdfunding and marketplace platform that facilitates both businesses and private organizations to access users’ accounts and accept online payments quickly.
Features:
Stripe has a quick setup, easy testing and recurring billing features.
It is built with a robust and clean APIs for developers and provides a powerful toolkit for interfaces and abstractions.
Stripe offers PCI compliance and seamless security with a two-factor authentication and fraud detection systems. This adds an extra layer of security to their payment services.
Stripe accepts currencies from more than 139 countries, and it automatically converts foreign currency into your account currency with minimal charges per transaction regardless of any monthly fee.
The only disadvantage of Stripe is that although sellers can accept cards from outside the US, the developers from outside the US can not avail its services.
Conclusion
The professionals associated with the multivendor marketplace models admit the fact that choosing the right payment gateway is one the most crucial factors for an online business as marketplace payment extension providers enable safe, secure and speedy online payments.
We would like you to share your thoughts about Payment Gateway Service providers. Let us know which the best payment gateway according to you is.
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