The global e-commerce market has reached new heights in 2022, with an expected end-of-year value of more than $5.5 trillion (USD). In turn, merchants are experiencing more opportunities to grow their businesses and reach new customers than ever before.
As merchants work to fortify their businesses to handle a larger volume of customers, it is crucial to have a robust approach to marketplace payment processing. With an optimized payment system and platform, merchants can maintain the competitive edge needed in 2022 and beyond.
This article discusses marketplace payment processing, including what it is, how merchants can use it, and which key capabilities to look for in a payment processing solution.
What is Marketplace Payment Processing?
Marketplace payment processing is a term that describes the technology and digital solutions that facilitate a digital payment system in an online marketplace.
Traditional payment processing involves credit and debit cards, requiring an exchange of cardholder information to make a purchase. Nowadays, many other types of payments can be made through a payment processing system outside of credit card purchases.
How Can Merchants Use Marketplace Payment Processing
Although it is technically possible for a merchant to try and build a payment platform from scratch, the better option is to partner with a fintech company with a fully-functional payment processing platform.
With a marketplace payment processing platform, merchants can access all or most of the capabilities needed for e-commerce. Moreover, many payment processing platforms offer customizable features that payments leaders can adjust to each specific merchant’s needs.
However, it is crucial for merchants to complete their due diligence and determine what they want and need from a payment processing platform. Then, they can begin their search for the ideal platform based on the specifications they have outlined.
5 Key Capabilities for a Marketplace Payment Processing Solution
Here are 5 top capabilities to prioritize when choosing a payment processing solution:
1. Speedy Transactions
Fast transaction speeds are a crucial component in any payment processing system.
A lot can go wrong in the transactional process, leading to a transaction taking a long time or being rejected altogether. As such, looking for a payment processing solution and platform that can offer highly efficient transactions is vital.
Some critical details to look for that indicate high transaction speeds include smart routing features that route transactions to the optimal gateways, automated fraud prevention and protection tools, and high authorization rates.
2. Multiple Payment Methods
Alternative payment methods outside of traditional debit and credit card payments are on the rise.
For merchants that plan to expand internationally, the ability to implement and enable the maximum amount of payment methods is ideal. From digital wallets to Buy Now, Pay Later, it is essential to offer customers various payment methods and focus on offering the most commonly used methods in specific local areas.
Moreover, merchants need the ability to fully secure their payment methods through security measures like encryption and tokenization. This ensures a merchant’s customer cardholder data is kept safe throughout the payment process.
3. API Integrations
Aside from enabling a wide of different payment methods, it is also crucial to have one or more APIs that allow for the integration of other tools, such as fraud prevention solutions.
With the help of APIs, merchants can integrate virtually any payment service they can imagine, including solutions for accepting payments, sending payouts, managing funds, and more. In turn, merchants can build a more robust payment system that includes an ecosystem of payment service providers and gateways.
4. Payment Orchestration Platforms
Payment orchestration platforms offer some of the most robust support and functionality of any payment processing solution.
A payment orchestration platform offers a singular and unified software layer that helps with crucial payment activities such as integrating payment service providers, collecting payment funds, performing account reconciliation, and everything in between.
With a payment orchestration platform, merchants gain the advantage of an end-to-end solution that considers every payment need.
5. Activity Monitoring
As more payment methods come into play, and digital technologies fall into ever more vital roles in payment processing, it is critical to have a strong fraud prevention, risk mitigation, and transaction monitoring system in place.
When looking for the right payment partner as a merchant, seeking out a company that offers activity and transaction monitoring is vital. Ideally, a merchant should partner with a payment orchestration platform provider that offers a unified dashboard for easy analysis and assessment of activity monitoring.
Additionally, merchants should seek solutions that offer simplified reporting tools to help keep customers safe and derive valuable business insights.
Spreedly’s Payments Orchestration Platform
At Spreedly, our payment orchestration platform offers the front-end simplicity and back-end sophistication your marketplace needs to thrive in the coming years.
From the Spreedly dashboard, you can easily monitor your payment activity and quickly integrate new payment service providers, gateways, or other essential tools. With pre-built connections to more than 120 payment services, all offered through a single API, Spreedly provides merchants with the advanced capabilities needed for flexible payment processing without hefty development costs.