Payment Service Provider features (PSP)
Connects payment providers to the marketplace
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Connects payment providers to the marketplace
Last updated
Was this helpful?
Marketplaces & traditional e-commerces differ in that in marketplaces, three parties are involved (vendor, buyer and platform operator) whereas in traditional e-commerces, two parties are involved (vendor/operator and buyer).
A payment service provider (PSP) or payment gateway hence becomes essential to bring payment solutions on marketplaces.
PSPs are used for:
accepting electronic payments thourgh different payment methods
credit card
bank-based payments
direct debit
traditional wire transfer
real-time wire transfer
PSPs workflows are adapted to match marketplace-specific requirements:
Secure recollection of funds & escrowing (secure delayed payment)
Fraud management, KYC (Know Your Customers) & KYB (Know Your Business Procedures)
Askers & offerors security and trust
Various PSPs can be used to perform transactions on marketplaces.
For all services.
Learn more on interfaces here:
Learn more on how to configure the bundle here:
SBO > Other > Feature > Stripe
SBO > Other > Feature > Payment Methods
Workflows are identical throughout the 3 PSPs Second offers:
The primary objective of the marketplace is to enhance user registration and increase the number of bookings. To streamline the booking process on the platform, Know Your Customer (KYC) verification is required only when a vendor wishes to accept a booking.
Customers can navigate the platform, search for listings, and make booking requests without undergoing KYC verification. This allows for an uninterrupted and user-friendly experience, encouraging more interaction with the marketplace.
Vendors, on the other hand, can easily create listings without initial verification. However, when a vendor decides to accept a booking request, they must complete the KYC validation process. The specifics of the KYC validation are determined by the payment service provider configured within the platform.
This approach ensures that while customers enjoy a seamless experience, necessary security and verification standards are upheld for vendors. By implementing this method, the marketplace maintains a balance between user convenience and security requirements.
There are different criteria to take into account when choosing which PSP to integrate. We can classify them into 3 main categories:
Geographical
Functional
Expertise & Price.
Geographically, it is key to check if the PSP can:
Operate in the countries where the marketplace will be hosting its activities
Comply with the laws of the concerned countries.
For example, is my customer's company on the list of countries allowed by the PSP?
Does the PSP accept bidders from “country”?
Functionally, one should verify if the features offered by the PSP covers:
The types of payment workflow (escrow, direct payment etc..)
The different payment methods (credit card, transfer, etc.)
KYC/KYB management
The functionalities offered by the PSP dashboard
The last criteria is the expertise & price of the PSP. While price is a fairly straight forward criteria, it usually scales with the following services:
The number of customers
The type of customers
The support provided
PSP name
Geographical criteria
Functionnalities
Mangopay
Operator located in the EU
Payment workflow: Marketplace (escrow)
Integrated payment: Credit card, Bank wire
KYC/KYB management
Stripe
Payment workflow: Marketplace (90 Days escrow)
Integrated payment: Credit card
KYC/KYB management
Lemonway
Operator must be located in Lemonway authorized countries (29 countries)
Offeror and asker must be located in Lemonway authorized countries
Payment workflow: Marketplace (escrow)
Integrated payment: Credit card, Bank wire
KYC/KYB management
KYC, or Know Your Customer, and KYB, or Know Your Business, are processes required to verify the identity of customers as per legal requirements and regulations. These processes are carried out by authorized companies, which usually are the PSPs. Marketplaces are however under the obligation of respecting this process before allowing users to receive payments.
These processes applies to:
All users who require the PSP’s services
Individuals or legal entities
Both askers and offerers
To benefit from the services provided by a PSP, users need to provide a certain amount of information.
Offerors provide :
Identity information about the individual opening the account
Company identity information if the account is registered as a legal entity
The KYC / KYB being a list of information concerning platform users, the required information may differ according to certain identity criteria such as:
Business type (individual or enterprise)
Business structure (private company, association etc...)
User country
The PSP-specific KYB/KYC processes are described the related PSP documentation.
Users must be on a specific list of countries ()
Operator located in Stripe authorized countries ()
Offeror must be located in Stripe authorized countries ()