The emergence of more and more digital Marketplaces and the general growth of e-commerce has triggered a rethink of transactional networks. The role of these providers is increasingly decisive for the success of the platforms and for the satisfaction of consumers and sellers.
The theme was at the centre of one of the most recent digital events on which easypay took part.
The growth of e-commerce and Marketplace payment solutions
Most likely, you have already made at least one purchase in an Online Marketplace. These direct-to-consumer online platforms are growing solidly around the world.
More and more stores and merchants make their products available in Marketplaces. After all, price comparison and bargaining attract a lot of consumers.
However, at the heart of all these operations, there are intrinsic transaction networks that support the entire process. From the moment of payment until receiving the receipt, there are dozens of steps and exchanges of information that must be successful for everyone to win. This process involves the seller, consumer and, of course, the Marketplace itself where the transaction takes place.
These transactional platforms manage the payment networks, the funds themselves and their distribution among the parties involved. It sounds simple, but it is a work of extreme responsibility that gave impetus to our most recent Talk on the subject.
Security is key for Marketplace payment solutions
Marketplaces need to operate with fluidity and confidence. For the developers of the transactional network behind the Marketplaces, that requires understanding the legal, technical and commercial requirements involved.
Only in July of this year did a diploma come into force, which regulated the relations between merchants and consumers in these stores. These major rules aim at protecting merchants with an online store and those who shop on these platforms. This is especially true once you consider these platforms wield significant power and existing regulations are very fragmented.
The current e-commerce landscape
The e-commerce landscape represents about 25% of the world economy, according to a study by the European Commission. But only in 2022 will Member States need to have legislation to regulate the use of guarantees of products purchased in Marketplaces, for example.
This solution will provide security and trust to both consumers and sellers. It ensures a solid transactional process, which separates the roles of all those involved.
Consumers want multiple products, but a single payment
According to the current legislation, the marketplace is not responsible for the transaction. In this context, the payment element provides a key safeguard for the shopper. This allows for the intervention of a payment institution in the transaction’s structure, thus separating the user from the platform.
For those who manage the transaction platforms, a vital question emerges: who assumes the risk? If the merchants perform the billing, that means they assume the payment risk. However, in this case, there are situations in which the store invoices, but in which it is the Marketplace that promotes and becomes responsible for the transaction.
Ultimately, what a consumer wants is to buy several products, but make a single payment. Then, the Marketplace will have to distribute this money across multiple stores and keep its share of the profits. It is platforms like easypay that help to execute this process in real-time.
This means that marketplace payment solutions need to receive from the customers, divide the money, deposit it in the accounts and ensure that it stays there until the delivery of the good or service. And this is only possible if the consumer feels confident enough to buy.
easypay as a reliable partner
Consumer confidence is decisive for success, and this is where easypay chips in. Marketplace are not new, but in Portugal they are still growing.
Paulo Pimenta is the Owner and CEO of KuantoKusta, a portal that emerged “as a price comparator” and that today is one of the most visited Digital Marketplaces in the country.
This business evolution “came almost by nature”, assumes Paulo Pimenta. We found a solution that provided security and trust to the customer” and for this reason, we entrusted easypay with the management of the transactions”.
“It is important to help clarify the added value of Marketplaces”, confesses the entrepreneur, but it is also vital not to forget that the user/consumer is at the centre of the operation. “The user is the centrepiece. Everyone wins when a transaction goes through. We have stored as partners and our goal is for them to sell as much as possible”, he explains.
But throughout this growth process, KuantoKusta had difficulties in finding anyone who wanted to risk and coordinate transactions. “Many partners did not want to take the risk of withholding the money until the purchase was confirmed. But easypay has devised a strategy that works really well,” says Paulo Pimenta.
He also stressed that it is crucial to guarantee that “we are sure that the money is well distributed and that users can make a single payment. It is also critical that we can ensure that, in cases of returns or delivery problems, our partners return the money quickly to the user. ”
There are no foolproof methods, but there is a desire and commitment to perfect processes in all parts of the transaction. And there is a strong demand for clear, complete and effective regulation to ensure the best possible operating conditions.
Read the full interview here.