Marketplace Payment Solutions: Top 5 Options For Your Business

An online marketplace payment solution facilitates payments between buyers and sellers on platforms and marketplaces.

They help your business by offering customizable payment experiences, security and much more.

In this article, we’re breaking down the features, pros and cons of the top 5 marketplace payment solution providers. We’ll also cover some of the benefits, challenges and common questions about marketplace payment solution providers.

Top Marketplace Payment Solution Providers

Let’s now take a look at the top 5 marketplace payment solution providers.

Quick overview:
Stripe Connect PayPal for Marketplaces Adyen's Marketplace Payment Solutions WePay MANGOPAY

Stripe Connect

Stripe Connect’s suite of products are used by leading marketplaces and platforms, with a global reach.

Let’s take a look at what Stripe has to offer.

Features and Capabilities of Stripe Connect

Stripe Connect enables speedy onboarding and allows your customers to instantly link their bank account details for faster payouts.¹

It allows you to onboard vendors from 35+ countries without the need to establish local entities. All while meeting Know Your Customer (KYC) checks and local compliance requirements.¹

With Stripe, you’ll benefit from customized payout schedules, from instant to recurring automated payouts. It also supports 135+ currencies, empowering international business.¹

Stripe centralizes workflows in one place, giving your team greater control. You can issue virtual and physical cards, as well as set spending limits. Refunds, disputes and automated 1099s tax forms can all be managed from the Stripe Dashboard.¹

Stripe also supports loyalty programs, subscriptions, as well as offers your customers flexible financing options.¹

Stripe Connect offers three pricing options:

1. Standard: per-transaction pricing starting at 2.9% + $0.30 USD, with instant payouts incurring a fee of 1%
2. Express: $2 USD per active account monthly and 0.25% + 25¢ per payout sent
3. Custom: $2 USD per active account monthly and 0.25% + 25¢ per payout sent²

You can also link your Wise Business account to Stripe, allowing you to receive international payments to local account details, without currency conversion fees.

Pros and Cons of Stripe Connect for Marketplaces

Here’s a summary of the pros and cons of Stripe Connect.

Pros	Cons
PCI compliance³ Three different pricing plans Centralized, customizable workflows through the Stripe dashboard Fast, compliant onboarding Ability to offer your customers financing, issue loyalty cards, cash cards and set up subscription billing Customizable payout schedules 135+ currencies supported	Relatively high transaction fees for high volume vendors

PayPal for Marketplaces

PayPal Commerce Platform allows your marketplace to expand globally, while remaining compliant with local regulations.⁴

Let’s look at what PayPal has to offer.

PayPal's Solutions for Online Marketplaces

PayPal supports 100+ currencies across 200+ different markets, offering local expertise. It supports a wide range of international and local payment methods, including BNPL options. It also allows your customers to generate subscriptions, invoices and billing agreements.⁵

You can send payouts to linked PayPal and bank accounts, as well as to debit cards and more. Split payments are also available. PayPal ensures security via PCI compliance, customizable fraud tools and actionable insights.⁵ It offers accelerated onboarding with KYC, OFAC and AML checks to mitigate fraud.⁵

PayPal also gives you the ability to offer your customers capital. This allows them to increase their sales volume in the long-run, benefitting your platform or marketplace.⁵

PayPal charges different rates depending on the payment method used. It consists of a variable percentage plus a fixed fee. International transactions are charged an extra 1.5% plus a fixed fee based on the currency.⁶

Pros and Cons of PayPal for Marketplace Payments

Here’s a summary of the pros and cons of PayPal Commerce Platform.

Pros	Cons
Support for 200+ markets and 100+ currencies Capital financing available for your customers Accelerated onboarding process with local compliance PCI compliance Ability to create subscriptions, invoices and billing agreements No monthly or set up fees	No free trial available Chargeback fees High fees

Adyen MarketPay

Adyen offers end-to-end payment solutions for market leading businesses, from eBay to Wix.⁷

Adyen's Marketplace Payment Solutions

Adyen supports multi-channel payments, in-person and online.⁸ Among some of the supported payment methods are:

• PayPal
• Apple and Google Pay
• BNPL options such as Klarna
• SEPA
• ACH
• All major credit and debit card issuers⁹

It also supports a wide range of local payment methods and multi-currency transactions in up to 180 different currencies.¹⁰

Adyen strives to make onboarding as smooth and efficient as possible. It supports instant identity verification with real-time notifications across 33+ countries in 23 languages.⁷ This increases customer conversion.

Payouts can be sent directly to cards and bank accounts, either on-demand or scheduled. Adyen is also focused on protecting your business against fraud through the following methods:

• KYC and AML checks
• MATCH list checks
• PCI compliance
• PSD2 compliance⁷

With Adyen, you can simplify your operations by having your payments, data and terminal information all in the one place, with real-time reporting.⁷

A standout feature of Adyen is its full banking suite. Through KYC data, you can proactively offer your customers business financing. This encourages them to buy inventory in bulk, increasing the overall payment volumes on your marketplace or platform. You can also issue them physical and virtual cards, to enable them to directly spend their cash advances—without any delays.¹¹

Adyen uses interchange plus pricing. It’s free of monthly and set up fees, instead charging a simple fee per transaction. The transaction fee consists of a fixed fee of €0.11 EUR ($0.12 USD) plus a variable fee based on the payment method used.¹²

Pros and Cons of Adyen MarketPay

Here’s a summary of the pros and cons of Adyen.

Pros

Cons

Wide range of international and local payment methods Full banking suite with capital financing and card issuing PCI compliance KYC, KYB, AML and MATCH list checks to protect against fraud Hundreds of supported international and local payment methods 180 currencies supported Smooth onboarding process supporting 33+ countries and 23 languages Real-time reporting Interchange plus pricing used No set up or monthly fees

No free trial available Pricing can be difficult to predict Minimum invoice required for certain businesses and industries¹²

WePay

Acquired by JPMorgan Chase in 2017, WePay is dedicated to creating custom, white label payment processing experiences.¹³

Let’s see what it has to offer.

WePay's Payment Solutions for Marketplaces

WePay offers integrated payments and banking in one solution. They have three products—Clear, Link and Core—which offer referral, white label and payment facilitator services. This makes WePay suitable for all small to medium sized businesses, especially those looking to scale.¹³

Their easy to integrate APIs allow for full customization of the payment experience. Payouts are flexible, with same-day deposits as well as weekend and holiday payouts to Chase business checking accounts. Onboarding is accelerated, with WePay handling compliance requirements and KYC checks.¹⁴

All major payment methods are supported too, including digital wallets. Your vendors will be able to collect online, mobile, card-present and card-not-present payments.¹⁴

WePay gives you full control of vendor pricing. For example, you can add mark-ups to the buy-rate on a customer-by-customer basis.¹⁴

WePay pricing starts at 2.9% + 0.25 USD per transaction.¹⁵

Pros and Cons of WePay for Marketplace Payments

Here’s a summary of the pros and cons of WePay.

Pros	Cons
Different products available for different needs—Core, Link and Clear Easy to integrate APIs and customizable payment experiences PCI compliance Speedy onboarding Major payment methods supported	Limited multi-currency support—only supports USD and CAD accounts and transactions¹⁶ No free trial available

MANGOPAY

MANGOPAY supports over 2,500+ platforms and marketplaces.¹⁷ Whether you’re a small business or scaling enterprise, it can support your payment needs.

MANGOPAY's Payment Services for Marketplaces

MANGOPAY enables marketplace owners to send payouts, accept payments and onboard sellers. All this, while remaining compliant. It specializes in supporting B2C, B2B, C2C and Crowdfunding¹⁸ business models. It offers modular, flexible and full-stack end-to-end payment solutions.

Its e-wallet payment infrastructure makes money management seamless through:

• Customizable payment workflows, simplifying payouts
• Virtual IBAN creation for every e-wallet enabling automatic reconciliation of transactions and recurring payments
• Split payments
• Ability to offer loyalty programs, top-ups and cashback for customer acquisition
• API which allows instant creation of e-wallets for every transaction
• Ability to hold as many supported funds as you like indefinitely, due to MANGOPAY’s Electronic Money Institution (EMI) licence¹⁹

MANGOPAY supports international and local payout methods, in up to 15 different currencies. You can customize the payout experience to align with your brand. Payouts can be funded either by the original transaction or through topping up an e-wallet, allowing for diverse funding options.¹⁸

Supported payment methods include:

• SWIFT
• Faster Payments
• Wire¹⁸
• SEPA
• PayPal
• Major credit and debit cards, from American Express to Visa
• Apple and Google Pay²⁰

Payouts can be performed in real-time or scheduled, with thorough KYB, KYC and AML checks to mitigate fraud. Payments have high acceptance rates, boosting customer conversion.¹⁸

MANGOPAY offers standard and custom pricing. Custom pricing is available for businesses processing more than €400,000 EUR ($426,754 USD) per month. Pricing is determined by the payment method used.

Standard pricing starts from:

• 1.4% + €0.25 EUR (0.27 USD) per card-in transaction
• €49 EUR ($52.28 USD) monthly platform fee
• €0.20 EUR ($0.21 USD) per payout
• €1 EUR ($1.07 USD) per KYC/€5 EUR ($5.33 USD) per KYB²¹

Pros and Cons of MANGOPAY for Online Marketplaces

Here’s a summary of MANGOPAY’s pros and cons.

Pros

Cons

PCI compliance¹⁹ Supports multi-currency payments in up to 15 currencies Modular, flexible, end-to-end stacked payments Customizable payment flows Supports a range of international and local payment methods Strong anti-fraud measures, with KYC, KYB and AML checks Customizable solutions for B2B, C2C, B2C, Rental and Retail marketplaces, as well as crowdfunding platforms Custom pricing available for businesses processing more than €400,000 EUR ($426,754 USD) per month

No free trial available Limited amount of currencies supported compared to other providers

Benefits of Marketplace Payment Solutions

The right marketplace payment solution can propel your business to success. Let’s look at the top benefits of marketplace payment solutions.

Seamless Multi-Party Transactions

Handling multi-party transactions can prove challenging. A buyer wants to be able to buy from multiple vendors at once. These vendors will have different pricing systems.

A good marketplace payment solution provider will make these transactions seamless.

Improved Security and Fraud Prevention

Chargebacks, disputes and fraud cost your business in revenue.

A solid marketplace payment solution provider is PCI certified. It also perform KYC and AML checks during the onboarding processes, the verify the identity and risk factors of your vendors.

Improved security equals increased revenue.

Enhanced User Experience and Conversion Rates

Seamless and secure multi-party transactions enhances your users’ experience. On top of this, extra features such as access to capital, adds further value to what your marketplace or platform can offer its vendors.

This in turn leads to higher conversion rates, growing your platform/marketplace.

Challenges in Implementing Marketplace Payment Solutions

Despite the benefits, there are some challenges that come with implementing marketplace payment solutions.

Balancing Fees and Cost Management

Striking a balance between quality and cost can be challenging.

But when it comes to running a marketplace or platform, being able to offer a smooth, easy to use and secure service is key for customer retention.

Likewise, paying extra for a payment solution that handles compliance goes a long way in freeing up your team’s time to focus on other more pressing issues.

Handling Disputes and Chargebacks

Disputes and chargebacks can quickly eat into your revenue.

Selecting a payment solution provider with strong KYC, KYB and ALM checks, as well as PCI compliance, is your best bet to reduce chargebacks and disputes.

Marketplace payment solutions that provide top-notch security will protect your revenue in the long-run.

Adapting to Regulatory Changes and Compliance

Regulations can change quickly. Remaining compliant can be a very difficult task, especially for global businesses onboarding a diverse range of vendors.

A marketplace payment solution provider that also works as a merchant of record (MoR) is beneficial for reducing the headache of compliance. This will save you time and resources, allowing you to focus on product development and other areas of your business.

Factors to Consider When Choosing a Marketplace Payment Solution

Marketplace payment solution providers normally have:

• Fees. These include set up and monthly fees, currency conversion fees, as well as transaction fees
• Security standards. PCI compliance, KYC and AML checks
• Customizable payment experiences that you can tailor to each individual customer
• Multi-currency support. Ability to receive payments from overseas customers in different currencies
• Accelerated onboarding processes. Compliant with country-specific regulations
• Support for a range of payment methods. From digital wallets, credit and debit cards, to BNPL options, QR codes and mass payments

On single-vendor marketplaces, the payment solution provider facilitates payment between multiple buyers and a single vendor. In this case, the vendor often also runs the marketplace, as it acts as their online shop.

On multiple-vendor marketplaces, the payment solution provider facilitates payment between multiple buyers and multiple vendors.

Amazon is an example of this. Multiple-vendor marketplace payment solutions can be more complex, as buyers will purchase items from different vendors at the same time—making payment processing more complex.

Here are some of the main factors to consider when choosing a marketplace payment solution provider.

Platform Integration Compatibility

You need to ensure that APIs and SDKs are easy to integrate with your existing platform or marketplace. Ease of integration will create a smoother platform for your customers, increasing conversion rates.

Payment solution providers with end-to-end processing and unified dashboards can simplify your operations significantly.

Fee Structure and Payout Speed

You need to ensure that the fee structure of your payment solution provider suits both you and your target vendors.

For example, if your marketplace has high sales volumes, selecting a payment solution provider that offers custom pricing and discounts could save you on high processing fees.

You also need to consider:

• Monthly fees
• Set up fees
• Costs for international transactions and currency conversions

Likewise, long payout times create a negative customer experience.

Select a payment solution provider that prioritizes fast payout times.

Some providers even offer same-day and weekend/holiday deposits. Just be sure to check if these incur extra fees.

Handling of Currency Conversion

Currency conversion capabilities are a key factor to consider when looking for a payment solution provider. A wide range of supported currencies as well as a competitive exchange rate are crucial for your success.

Being able to offer your vendors multi-currency functionality at good rates will attract internationally-focused businesses. In turn, having these businesses as your vendors will increase overall sales volumes on your platform/marketplace.

Frequently Asked Questions

Here are some common FAQs when it comes to marketplace payment solutions.

What is the role of escrow in marketplace payment solutions?

Escrow reduces the risk of fraud in marketplace payment solutions. It protects both the buyer and seller.

When a buyer makes a purchase, their funds enter an escrow holding account. Only once they receive the product and are satisfied with it will the funds then be released to the seller.

In this way, escrow payments add security to marketplace transactions, allowing unknown sellers and buyers to work together safely.

How do marketplace payment solutions ensure buyer and seller protection?

Marketplace payment solutions ensure security by complying with the Payment Card Industry Data Security Standard (PCI DSS). This protects all card transactions.

Tools such as 3-D Secure, as well as Know Your Customer (KYC)/Know Your Business (KYB) and Anti-Money Laundering (AML) checks all ensure security during the onboarding and payment processes.

Payment services such as escrow can also provide additional security.

Can I use my existing payment gateway for a marketplace?

You can use your existing payment gateway for your marketplace. But a marketplace payment solution provides much more than just a payment gateway. For example, some payment solution providers act as a Merchant of Record (MoR), taking issues of compliance away from your business.

Having one integrated, end-to-end payment solution is best for making your marketplace run smoothly and efficiently.

So just ensure that your existing payment gateway can integrate with your prospective payment solution provider.

Conclusion: Which marketplace payment solution is best?

The marketplace payment solution that’s best is the one that best aligns with your business and its goals.

For example, if you’re focused on international expansion, then multi-currency and language support, as well as regional expertise with compliance, will be the key factors in your decision process.

Regardless of what your specialization is, payment solution providers with customized pricing for high sales volume vendors, as well as strong security measures, can be your best bet.

Receive marketplace payments with Wise Business

You can connect your Wise Business account to platforms such as Stripe and Amazon to save on currency conversion fees.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in 40+ currencies. You can also get 9 major currency account details for a one-off fee to receive overseas payments like a local.

When it’s time to receive a payout, you can use local account details from Wise, with no need for conversion fees. Simply receive the payment like a local seller.

And if you do need to convert your funds, you’ll have access to the mid-market exchange rate with Wise Business, with no hidden fees.

Read the guide on how to open a Wise Business account

---

Sources:

1. Power Payments for Your Marketplace
2. Pricing information | Stripe Connect
3. Integration security guide | Stripe Documentation
4. PayPal Commerce Platform for Marketplaces and Platforms
5. PayPal Marketplace | PayPal Commerce Platform | PayPal US
6. Fees | Merchant and Business | PayPal US
7. Payment solution for marketplaces and platforms - Adyen
8. Adyen
9. Payment Methods - Adyen
10. How payments help subscription businesses grow - Adyen
11. Adyen Card Issuing | Issue virtual cards instantly
12. Full list of prices for supported payment methods - Adyen
13. Payment Service Provider | About WePay​
14. Clear | A White Label Payment Gateway from WePay
15. Link from WePay | The easiest way to monetize payments
16. Merchant Location and Currency
17. Mangopay
18. Payout - Mangopay
19. E-wallet - Mangopay
20. Payments - Mangopay
21. Pricing - Mangopay

Sources checked September 2023.