Marketplace Payments Automation
Online marketplaces must pay their digital partners – often thousands at a time – with efficiency and by mitigating risk, reducing compliance burdens, and maintaining profitability. Only then can they scale their growth. And growth is the only path for a marketplace to succeed. It’s very nature requires scale.
An automated payment operation goes beyond sending wire transfers and making PayPal payments. How does automating payments drive the business forward?
- Global Positioning – A robust payments competency expedite marketplace growth to take advantage of global partners.
- Platform Agility – Operational scalability and efficiency reduce friction across the board, but particularly with partner relations.
- Strategic Insight – Real-time payment reporting provides the intelligence needed to drive financial decisions.
- Operational Focus – Strategically and analytically focused finance personnel can step away from transactional activities to more business-critical analysis.
Does our marketplace have a payments issue?
Here are some common issues online marketplace face regarding payments process to their partners.
- Time spent onboarding or emailing an ever-changing partner population.
- Siphoning resources to populate partner bank account data.
- Complying with IRS FATCA and international tax compliance requirements.
- Investigating and resolving payment errors and issues.
Global partner challenges
- Validating that partners are legally payable.
- Paying in preferred methods and local currency.
- Adhering to local banking and regulatory issues.
- Reporting on payments across multiple accounts takes hours or days.
- Kludgy in-house systems built from proprietary code must be maintained like an off-the-shelf product.
- Hiring additional staff to meet payment needs of growing marketplace.
- Mitigating fraud risk.
Marketplace Payments Automation Checklist
Looking to automate online marketplace payments? Here’s what every system should have in place to ensure a future-proofed, scalable process.
For more insight, including real-world perspectives from senior finance and operations teams at online marketplaces, download our ebook.