The right marketplace payment method helps to increase sales, reduces the fraud risk, improves chargeback management. And even expands your business internationally. The Sloboda Studio team analyzed all marketplace payment solutions to help with the right decision.
How to Choose a Payment Gateway
You should not immediately choose the most popular pay aggregator. Even the best settlement solution for marketplaces may not fit your product.
To choose a fee marketplace gateway, you will need to answer the following questions:
- Is the gateways supported in your region;
- How long is the provider on the market? The longer provider’s history, the more experienced and reliable it is;
- Do the tariffs meet your and your customer’s requirements.
Popular platforms like PayPal, Stripe, Braintree are supported in most regions worldwide. Among these regions are the USA, Asia, Europe, and Australia.
But still, some of the pay gateways have geo-restrictions. This is my advice to check whether your settlement solution is geo-friendly to your region. And to the region of your potential customers.
Here are some examples of geo-restrictions of pay gateways:
- Stripe is unavailable in the United Arab Emirates marketplaces
- Dwolla is available only for users from the USA
- PayPal has a whole list of prohibited countries. The list includes Belarus, Burma, Iran, Iraq, Liberia, Nigeria, North Korea, Sudan, Syria, Western Balkans, Zimbabwe.
- Braintree is not an option for companies who target customers in Norway
What Are the Most Popular Marketplace Payment Options
The most popular marketplace payment options include credit/debit cards, digital wallets (such as PayPal, Apple Pay, and Google Pay), bank transfers, and in some cases, cryptocurrency. These options provide convenience, security, and wide acceptance, catering to diverse user preferences and facilitating seamless transactions on marketplaces.
So how to choose a marketplace payment solutions? We offer you a quick checklist.
- Choose the type of pay in your marketplace. Three of them are bank transfers, remittance gateways or custom payment systems. We concluded that payment gateways are the most convenient to work with. Especially when you need a perfect balance of features and prices.
- Make a list of remittance gateways. Braintree, Stripe, PayPal, Mangopay – you should know what to choose from.
- Consider different marketplace pay methods. There should be all the standard credit cards and e-wallets. If you need to work with local payment methods, check its availability as well.
- Check the fees. As usual, most remittance gateways take a 2,9% fee per transaction. However, some providers can request a percentage of a transaction amount, so be careful.
- Check geolocation. Some payment gateways can be restricted in different regions. Check whether the chosen solution is available in your country.
