Marketplace: how is payment between individuals processed?

Consumer-to-consumer marketplaces have grown considerably in recent years, offering consumers fast and convenient access to a variety of products and services. However, one of the most important aspects of the shopping experience on these platforms is the payment process. In this article, we'll take a closer look at how payment works on marketplaces.

The different payment options on marketplaces 

The payment process on a marketplace between individuals can vary depending on the platform. Most marketplaces offer various secure payment options to protect buyers and sellers. 

• Payment methods available on marketplaces:
• Payment by credit or debit card
• Bank transfer
• Payment in instalments
• BNPL (Buy now, pay later)
• Electronic wallet

One of the most common payment options on marketplaces is payment by credit or debit card. 7 out of 10 Europeans use bankcards for everyday purchases.

However, technological advances have played a key role in the evolution of deferred payments by facilitating the payment process for a better user experience. In order to meet the different needs of consumers, payment in several instalments and BNPL are two methods that are appreciated by them, as they help to build customer loyalty and encourage them to return to the marketplace.

It's no longer a surprise that the payment experience is an essential criterion for completing a user's purchase on an online platform. Offering a smooth, secure, fast and transparent experience encourages long-term loyalty and triggers online purchases, with no break in the sales process. Payment therefore becomes a conversion lever.

The steps involved in buying between private individuals on a marketplace

When buying between private individuals on a marketplace, there are several steps to follow to ensure that the transaction runs smoothly. 

• The seller places their item online on the marketplace and sets a price. This may include a description of the item, images and delivery information.
• The buyer browses the available items and selects the one they wish to buy. They can also ask the seller questions before making their purchase.
• The buyer pays the seller's asking price, plus marketplace fees, which may vary depending on the platform used. Payment methods may include credit cards, bank transfers, e-wallets, cash in advance or BNPL.
• The seller sends the item to the buyer. The choice of delivery may vary depending on the marketplace and the seller. Some sellers may offer several delivery options, while others may have strict delivery policies.
• The buyer receives the item and checks that it matches the description and is in good condition. If the item is damaged or does not match the description, the buyer can contact the seller to request a refund or exchange.
• If the item conforms to the description, the buyer confirms receipt of the item on the marketplace. This allows the seller to receive the money from the transaction, minus the marketplace fees.
• It is important to note that the steps may vary depending on the marketplace and the seller. It is also important to choose a secure payment method to avoid fraud and to check the marketplace's returns and refund policies before making a purchase.

Payment security on marketplaces

Payment security is a crucial aspect of the shopping experience on consumer marketplaces. Marketplaces put security measures in place to protect buyers and sellers during transactions. One of the most common security measures on marketplaces is the use of secure payment systems. Secure payment systems are systems that encrypt buyers' payment details to protect them from fraud and hacking.

Marketplaces may also use identity verification systems to ensure that buyers and sellers are who they say they are. They can also offer money-back guarantees to protect buyers in the event of a problem with their purchase.

For added security, there are transactions with blocked funds. The funds are blocked until the buyer receives their parcel and validates the transaction.

Transaction fees on marketplaces

Marketplaces often charge transaction fees for each sale made on their platform. These fees can vary depending on the platform and the amount of the transaction.

Transaction fees can have an impact on both buyers and sellers. Buyers may be discouraged from buying on a marketplace if the transaction fees are too high. Sellers may also be discouraged from selling on a marketplace if transaction fees reduce their profit margins.

Payments with Obvy 

Obvy secures your marketplace or ad site customers' funds in a digital safe until the transaction is finalised. You can therefore ensure optimum satisfaction for your sellers and their customers, by putting trust back at the heart of the transactions that take place on your platform.

Obvy is a trusted third party able to support you in monitoring, setting up and managing all the transactional elements to ensure optimum satisfaction for all those using your platform.

Obvy also allows transactions with immediate transfer of funds, without a blocking stage, and payments on dispatch or receipt of order.