Thanks to sweeping digital transformation and the evolving needs of buyers and sellers, today's marketplaces are hives of opportunity. For sellers, this traditionally comes in the form of exposure to customers, the chance to build brand awareness and support when it comes to distribution and the movement of stock. Increasingly, however, one of the most defining factors in the relationship between marketplaces and their sellers is the handling of payments.
Fast and convenient online payments aren’t new, but the ability to verify both sides of a transaction and securely hold funds until all conditions of a given deal are met - particularly where high-value products, or time-sensitive services or trades are concerned - is still sorely lacking. A marketplace that can offer a fully compliant, protected payments solution to buyers and sellers will therefore enjoy a much stronger relationship with both parties - one that’s built on transparency, confidence and mutual trust.
The key here is the word ‘mutual’. While offering more convenience and reassurance to buyers is one way for a marketplace to make things easier for sellers, there’s also a great deal of value in offering protection and convenience for sellers themselves in the form of customer verification or built-in compliance with regulations like PSD2. As the payments revolution continues to shape the way buyers and sellers interact, here are the top three ways payments solutions can strengthen the marketplace bond:
1/ Levelling the playing field for all parties, including sellers
Quite rightly, there tends to be a lot of focus on buyer protection when it comes to online purchases, but what can marketplaces do for their sellers in this regard? According to a recent survey by PwC, buyer fraud was ranked as the number one crime experienced by companies globally in 2020. This kind of fraud comes in many forms, from claims of non-delivery and items arriving ‘not as described’, to purchases being made using stolen card details which then must be refunded (identity theft). In these instances, all benefit of doubt tends to be given to the buyer, leaving sellers to shoulder the burden. Paycast redresses this balance, levelling the playing field by putting trust and transparency front and centre. Unlike other payment engines, Paycast holds funds in a safeguarded environment until all the conditions of both buyer and seller are met. This solves three problems: buyers get the protection they deserve, sellers get the protection they need, and marketplaces don’t have to bear the responsibility of holding large sums of money.
2/ Making verification more than a one-way street
In a market that’s increasingly buyer-centric, it’s easy to forget that verification of the counterparties only works if it goes both ways. Trust in a transaction isn’t just contingent on the secure holding of funds; it’s also contingent on the authenticity of all involved parties. What’s more, verification is only effective if it can be executed quickly and with due diligence, particularly when it comes to the seamless onboarding of new sellers into the marketplace. If marketplaces are to keep the hard-won trust of buyers, verification needs to be a core function of seller onboarding - and the easier the onboarding process is, the more scalable the marketplace will be. As a payments partner, Paycast manages real-time verification checks on all parties for each and every transaction that takes place, letting the players in the marketplace get on with what they do best.
3/ Replacing regulatory friction with total peace of mind
For the majority of marketplaces, regulatory compliance may rank highly on their risk of concerns. With new directives and regulatory updates to existing ones, such as PSD2 (2nd Payment Services Directive) coming into force, sellers may want to know that the marketplace in which they operate has them covered. Therefore, if a marketplace is going to invest in a payments solution to facilitate transactions, surely it makes sense to choose one that does this and more – points 1 and 2. By choosing Paycast as a payments partner, marketplaces are able to offer their sellers complete peace of mind with friction-free transactions that are fully compliant with the current regulatory landscape.
For all the transformative changes we’ve seen in marketplaces in recent years, the one element tying all this innovation together is mutual trust. At Paycast, we’re doing all we can to help facilitate this new era of trust, creating a safe, secure and simple solution that allows marketplace economies to flourish in a digital world.
For more information about how our fully compliant payment solution can be tailored to your marketplace and help to strengthen your relationships with sellers, get in touch today.