PayPal (NASDAQ:PYPL) recently announced it is rolling out a new PayPal for Marketplaces product, an end-to-end global payment solution, designed to help businesses manage and tailor payments to their specific needs.
Introducing PayPal for Marketplaces
PayPal for Marketplaces is a flexible and comprehensive payment solution for businesses that accept and disburse funds.
In recent years there has been an ongoing rise in online marketplaces which have unique payment needs. It is estimated that by 2020, global marketplaces will own almost 40 percent of the online retail market.
Since it launched in 2000, PayPal has been dedicated to serving marketplaces with numerous payment solutions. The PayPal for Marketplaces product is aimed at enabling businesses to harness and capitalize on the capabilities of the best-known marketplaces in the world.
PayPal has announced it is rolling out PayPal for Marketplaces slowly. Several well-known marketplaces, including Grailed, AliExpress and Rocketr are already using PayPal for Marketplaces.
PayPal recognizes that marketplace businesses have unique needs, such as collecting fees and commissions and making multi-party disbursements. Marketplaces that use PayPal for Marketplace can tailor the product based on their own particular needs. Consequently, PayPal enables them to manage the risk and therefore have more control and risk ownerships.
In an Introducing PayPal for Marketplaces announcement, Manju Thomas, senior director of Partners and Marketplaces at PayPal, noted how PayPal is prioritizing safety in its new product, stating:
“As always, PayPal offers value-added benefits like buyer and seller protection, risk- and fraud-detection capabilities and seamless checkout solutions that drive conversion for merchants.”
How Can Small Businesses Use PayPal For Marketplaces?
For small businesses, PayPal for Marketplaces promises to be an effective way to nurture growth by helping assist with the management of fees, holds, disbursements, onboarding and more.
Without the luxury of ample amounts of time, or hordes of employees or money to delegate tasks, small businesses are often strapped when it comes to setting up payment platforms.
PayPal says its Marketplaces platform is quick to set up. Enabling payment acceptance is quick and easy, the company says, with a one-stop payment platform. And this should allow a small business’s customers to set up and get paid quickly.
Unlike the traditional PayPal platform and other online payment solutions, PayPal for Marketplaces enables small businesses to customize payments at the transaction level for their specific needs. By allowing businesses to set payment timing, collect commissions, and more, small businesses have greater control over payments.
PayPal also recognizes there are many complexities associated with payment services regulations and regional nuances. The company says its PayPal for Marketplaces product is designed to help small businesses overcome and navigate such complexities and help them grow and reach out to customers on a global scale.
Failing to invest in onboarding is hailed as one of the biggest mistakes a small business can make. PayPal for Marketplaces offers a flexible onboarding solution for a business’s customers. It gives businesses the option to offer onboarding upfront or upon customers getting paid. Or, if setting up accounts for customers isn’t right for a specific small business’s needs, PayPal can work with that too.
Payment disputes are an almost inevitable issue businesses of all sizes face from time to time. Investing the time, money and effort into handling payment disputes and chargebacks isn’t always an option for many cash and resource-strapped small businesses.
Again, this is where PayPal for Marketplaces can step in and prove invaluable. Businesses can take advantage of PayPal’s payment management expertise. They can let PayPal handle all payment disputes and chargebacks that may arise.
Alternatively, if small businesses feel comfortable dealing with chargebacks and payment disputes, they can take on the responsibility themselves. PayPal for Marketplaces gives small businesses the flexibility and freedom to choose their own payment platform solutions.
When it comes to getting paid, small businesses have greater control with PayPal for Marketplaces. They simply have to set up a transaction fee or request a voluntary tip-up. Whatever solution they opt for, a business can get paid on their own specific terms.
Similarly, when paying customers, small businesses have greater flexibility and freedom. They can either pay customer straight away, schedule a payment or wait until a goal has been met. It is entirely up to the small business when users get paid.
PayPal for Marketplaces gives small businesses have greater flexibility to have their payments run and managed more efficiently, allowing them to go global and act more like to multinational than a small regional business.