The sphere of online payments is difficult and strongly controlled, which means that it is hard for small companies to develop their own payment system and establish good relationships with banks. This process requires a large capital investment and a long period of time. Instead, a lot of businesses look for a partnership with a payment platform contributor.
A great part of modern businesses needs to provide online payments due to reach more value in transactions. There is a need to create a full-fledged system that will make it possible to make payments on the website or in the application.
What does marketplace payment processing mean?
A marketplace is a website or application that offers sellers and consumers to sell and buy products, taking a commission. Its payments must be safe, support different payment methods and deduct the commission for using the trading platform.
That’s why marketplace payment processing must include:
- Fraud protection
- Dealing with multiple marketplace payments
- Dividing funds between the platform and the merchants
Also, marketplaces should provide the possibility to purchase products or services from different sellers at the same time. Therefore, it allows users to shop easily and quickly, increasing profit for merchants.
How Does It Work?
Marketplace payment processing provides placement for merchants and entrepreneurs to sell their products and services. That’s the main aim of creating the smart solution for these needs was to enable users to easily pay for purchases in a convenient way. Simplicity and ease of use were the key requirements of this platform due to keeping the customer and motivating him to make more purchases. Therefore, a marketplace payment solution was made to meet these business needs.
Let’s consider two cases of using the marketplace payment process. The first one was a leading MENA PSP that needed to transform its core transaction accounting system. Also, they needed to support cashless payments targets, and make the payments acceptance process transparent and seamless for their customers. The goal was not only to deliver this improved experience to the customers fast but also at scale.
The solution was transforming digital payments within the SME space with the launch of its technology that turned smartphones into POS terminals. As a result, the company got the ability to see the whole payment cycle in detail, starting from acceptance and reconciliation to settlement and payout ensuring transparency for the money flow and everyday accounting.
Another case is connected with a business built around a network of cash-in payment kiosks scattered all over Azerbaijan and abroad. The tasks were introducing more vendors into the system and network expansion.
The solution was to create an ecosystem that will help to structure the existing business processes and give the functionality to develop online services later on.
As a result, the company got the opportunity to create a reliable payment-oriented ecosystem, building it out from the general ledger layer. Now it offers access to various regional service vendors with a unique account and client profile available in the app and web solutions.
What made it possible to overcome these challenges and satisfy the client’s needs?
There are some reasons that made it possible to overcome the challenges and get the desired results.
● The right functionality
● No vendor lock-in
● API-first approach.
● High scalability
As a consequence of possessing such advantages as a versatile fintech platform, source code license, API-first approach, and high scalability were created a strong marketplace payment solution on the ledger layer software.
What Platform Can Provide?
The platform is capable of catering to any payment business need through its extensive customization capabilities, cutting-edge technology stack, and high code quality. According to your needs, this platform can provide you with such features:
- Creating payments within the new transaction accounting system by integrating with the company’s POS network.
- Implementing a system for automated payment reconciliation.
- Creating a merchant’s back-office to ensure instant access to their account balance, POS list, transactions history, and payout report.
- Implementing flexible fees and commission configuration functionality, to define a company’s profit by differentiating between a total and bank commission related to operation processing.
- Automating payouts to a merchant’s IBAN once the money is settled through the bank.
- Allowing merchants to auto-deduct loan payments from their payouts till the loan is paid.
- Integration with the MasterCard Payment Gateway Service to allow merchants to accept online payments.
Now, we have considered the greatest platform payment options. They offer secure payment processes, implement a transaction accounting system and flexible fees and commissions, and integrate online payment services. In addition, we have identified the key points to pay attention, to when choosing a platform such as the right functionality, API-first approach, and high scalability.
Using marketplace payment processing, you can create an online business leveraging multiple vendors and enabling them to offer products and services all over the world. It is an adjustable general ledger software for accounting, client management, and business flow automation.
