PayPal creates product purpose-built for online marketplaces
24 October 2017 | 3375 views | 1
Over the past few years, we’ve seen impressive growth in marketplaces and other platforms with unique payment needs.
Marketplaces have become the center of ecommerce activity. Today, more than half of consumers who shop online are making purchases on marketplaces, and global marketplaces are expected to own nearly 40 percent of the global online retail market by 2020.
PayPal has long served marketplaces — from its origins with eBay to Uber and Airbnb — but until now, we’ve supported these customers with a variety of different solutions. Today, we’re excited to share that we’ve launched PayPal for Marketplaces, an end-to-end global payment solution that can help businesses harness the capabilities of the world’s best known marketplaces. We’re beginning to roll this out globally and expect to be available to all markets in the coming months. Marketplaces like Grailed and Rocketr are already using PayPal for Marketplaces today.
PayPal for Marketplaces is a comprehensive and flexible payment solution for businesses accepting and disbursing funds — whether consumers pay using their PayPal wallet, credit cards or debit cards. Marketplace businesses—from ride sharing and room-rental platforms, to online crowdfunding portals and peer-to-peer e-commerce sites—have unique needs, like collecting commissions and fees, setting payouts and multi-party disbursements. And because of PayPal’s global reach, we can support buyers in more than 200 markets and sellers in more than 120 markets. We can also tailor our solution based on the marketplace’s need. For example, for marketplaces that don’t want to take on all of the risk, we offer solutions that allow PayPal to help manage the risk. But we also offer a solution for other marketplaces that want more control and risk ownership.
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. This includes One Touch, which enables more than 70 million of consumers around the world to skip logging in to PayPal at eligible merchant sites.
Grailed Founder and CEO Arun Gupta shared his experience using the platform. “We exclusively use PayPal for Marketplaces in our peer-to-peer marketplace,” Gupta shared with us. “By integrating with PayPal’s end-to-end solution, we are able to focus on building the best possible marketplace without having to worry about the headaches that come with payment processing and ACH payouts. It has allowed us to be fully international from launch while providing comprehensive Buyer and Seller Protection for our users. As a re-commerce marketplace, having PayPal on our side when it comes to Trust & Safety adds an invaluable sense of legitimacy to our brand. As an added bonus, the mobile optimization leads to increased conversion in our purchase funnel. Without PayPal we would have to significantly increase the size of our team and our business would likely be many years behind where it stands today.”
Rocketr.net CEO Saad Kothawala shared his experience using PayPal for Marketplaces. “We're excited for the adoption of PayPal for Marketplaces because it allows the Rocketr team to better service our own customers' needs. We believe the platform will be instrumental in the digital goods marketplace and we're beyond excited to see our users supporting it!"