Best Payment Options for an Online Marketplace
The marketplace economy is booming and it is becoming a very profitable industry. Currently, Amazon sells more products online every minute than any other store in the world. Now, think of the millions of other marketplace websites online, and how much revenue they generate every single day. It’s safe to say that online shopping has become our primary method of shopping.
Online marketplaces are websites or apps that connect buyers with sellers, and they offer a great level of convenience for the customers. Marketplaces act like the middleman, providing customers with the products they need by procuring them from the sellers. They charge a certain amount to provide this service. The amount of products that are being sold online has turned “marketplace payment processing” a hot topic. While the “storefront” style of eCommerce stores is still going strong, the changes in technology have provided new methods to connect buyers and sellers. Niche marketplaces are continuing to grow and will keep doing so in the near future.
With customers spending almost $16 trillion in the Q3 of 2021, it’s more crucial now than ever to integrate payment processing solutions. These can lead to affordable, reliable, and secure collection of funds from customers. Account-to-account payment solutions like ACH, push-to-debit, and real-time payments offer businesses a great way to process payments.
Instead of relying on outdated methods of payments like cards or paper checks for marketplace payment processing, account-to-account payment processing provides a better advantage to online marketplace owners.
Steps to Improve Marketplace Payments
Every single online marketplace needs to find an ideal platform for online payment processing. Online marketplaces need to have online payment processing methods to run as smoothly as possible when it comes to handling customer payments.
Marketplaces are constantly accepting payments from buyers and paying their merchants. This is why it’s crucial to have a smooth payment process. But with an unsuitable payments integration. Without it, you may not know about unnecessary charges on both sides of the transaction. If you want your online marketplace to succeed, then you need to collect payments as smoothly as possible.
Important Aspects of Marketplace Payments
You need to make sure that the buying experience for customers is as smooth as possible. The ideal account-to-account payment solution builds a brilliant user experience and allows them to buy whatever they want.
The online marketplace user experience can be broken down into 5 main elements:
- How easy is it for users to accomplish easy tasks
- Once the user understands the design, how quickly can they perform a task?
- Whenever a user returns, how easily can they reestablish proficiency
- How many errors do the user makes, how severe do these errors are, and can customers prevent from making these errors?
- Is the design pleasant to use?
Marketplace Payment Processing Options
1. Credit Cards
The first and foremost method should be credit cards. This is because of how commonly they’re used by customers all over the world. Accepting credit cards during the payment part is pretty common. Cards are available everywhere and they provide a convenient user experience for the consumers. Although, these cards are expensive for marketplaces. Most marketplaces tend to increase their prices to keep up with these costs.
2. ACH Payments
ACH payments can get rid of the mailing and managing of paper checks by sending funds from bank to bank accounts. This can reduce the time and cost of making payments for online marketplaces.
As online marketplaces collect payments from buyers and sellers, they need to have a simple monitoring process. ACH Payment integration can help in managing data in an easy-to-use format by monitoring transactions and reporting issues. Online marketplaces need payment service providers that allow businesses to operate smoothly, instead of slowing down the workflow.
3. Instant Payouts to Debit Card
Instantly send money to debit cards with push to debit payments. Online marketplaces can use these payment methods to combine the speed of card transactions and the affordability of account-to-account transfers. Marketplaces businesses want to receive payments quickly and this is a great way to do so.
4. Real-Time Payments
One of the newest payment standards in the United States is the RTP Network which is owned and operated by The Clearing House.
Real-time payments can be initiated at any time of the day. These are balance-sourced account-to-account payments that clear and settle near instantaneously.
How to Secure Payment Process?
While it is important to have a seamless payment settlement process, it is also crucial to make sure that the process is as secure as possible. The online marketplace can reduce the risks of payment fraud by verifying payment merchants before onboarding.
DIRO online document verification solution can be used by online marketplaces to verify online payment processors. This can help in reducing chargeback fraud, and other types of payment fraud.
