Rules for choosing your Marketplace payment solution

When you want to launch your marketplace, the question of payment service provider known as PSP arises. New players have emerged and are making proposals that should be taken into account. Note that some of these new players are tied to traditional banks. This can reassure those who are more cautious. To choose some elements well.

Main one: Payment methods offered

The main thing is to choose one of the payment solutions in the market which provides your customers with the preferred means of payment. Of these, the bank card is privileged. According to FEVAD, it is by far the most used means of payment in over 80% of cases.

Some payment players do not hesitate to go ahead and offer means like bank transfer, instant payment or even payment in installments. By multiplying the payment options offered, you increase the likelihood that your customers will make their purchases. The type of customer you have will determine whether this option is relevant as shopping cart abandonment is one of the major issues in online selling.

The security and compliance of your business: an essential element.

Customer insecurity (in 17% of cases) remains one of the reasons for non-transformation of sales. So security is an element to carefully consider, especially if your site doesn’t have a strong reputation. In this area, you can play it safely by opting for solutions involving traditional banks as banks have relative confidence in the matter.

You must also ensure that the solution allows your market activity to comply with the regulations on the management of financial flows and payment services: if your company is not itself a payment institution (ACPR, approval from the Prudential Control and Resolution Authority – French Banking and Insurance Supervisory Body), call a payment service provider that is itself approved by the ACPR, to guarantee compliance with financial regulations.

The presence or not of a VAD contract.

This should be considered while choosing an online payment solution. A VAD or VADS contract is a safe distance sale contract between a bank and a merchant. It allows you to offer an online electronic payment terminal and collect payment flows from your customers securely by bank card, benefiting from the bank’s payment guarantee. The VAD contract also makes it possible to define the amount of the electronic payment commission deducted from each transaction.

This VAD contract can induce an order setup cost of a few hundred euros, the amount varies depending on the bank. In addition, the bank must examine its own risk with respect to your company and the products it offers, so it may refuse to sign a VADS contract in certain cases.

commission model

Another point of analysis is the commission model. While some charge only a percentage fee on a transaction, sometimes paired with a fixed fee, others have a subscription fee as well. Of course, your choice should take your revenue projections into account in order to calculate the most profitable solution. Beyond a certain transaction limit, it may be more interesting to opt for a solution with a subscription, provided the commission rate is more competitive. Conversely, if your online transaction volume is low or difficult to predict, it may be more interesting to choose a solution without fixed costs with a higher commission rate.

PSPs charge around 1.5 to 3% on average, but they can reach as high as 10%. Some people also ask for installation fee

Internationalization and Fund Recovery

If your business is international, you need to look into this question. It is clear that many new parameters will be considered. These can be quite complex and are responsible for the failure or abandonment of 60% of international transactions. You should also consider that customs and traditions of each country may be different and that your supplier will need to take into account local currencies and means of payment.

Last but not least, you need to check how you can get your money back. In some cases, you will only be able to transfer your funds by a certain amount, for example, which can complicate your management. In this case, the quality of the dashboard may affect the difficulty of managing transactions or transaction history.

Related Stories


Zen by LegalStart: An anti-scam shield for entrepreneurs

Created almost ten years ago with the aim of simplifying and digitizing the legal...

social network, an opportunity

Social networks have invaded our world. Facebook, Twitter, LinkedIn, YouTube, Pinterest, Instagram... and...

Self-employment in France: revival of activities and income

At the end of 2021, France will have no less than 3.9 million self-employed...

fundraising fashion

Fundraising has become a major trend in the business world. Whether promising startups,...

Ten Mistakes Entrepreneurs Shouldn’t Make

Almost every day, we learn that new laws are coming,...

Which tools for more efficient management?

There are many responsibilities involved in managing a DSI (Department of Computer Services). ...

Popular Categories



Please enter your comment!
Please enter your name here