At first glance it is simple: the buyer pays the marketplace, the marketplace keeps a commission and transfers the rest to the seller. But if the platform receives and holds money on behalf of third parties, many countries require a payment license for that. That is why payment architecture should be designed before development — a key part of our marketplace development projects.
In short: use marketplace solutions from licensed payment providers with split payments: they run seller KYC, split each payment into the seller's share and the platform's commission and handle payouts. You do not hold other people's money and do not need your own license at launch.
Marketplace payment models
| Model | How it works | Risks and requirements |
|---|---|---|
| Platform collects all funds | All payments go to the platform's account, then payouts | Often requires a payment license; demanding accounting |
| Split via a provider | The provider splits the payment between seller and platform | Needs a provider with a marketplace product; seller KYC |
| Direct payments to sellers | Buyer pays the seller; platform invoices its commission | Simpler, but weaker control and user experience |
How a split payment works
- The seller onboards with the provider: company details, bank account, verification.
- The buyer pays for an order on the marketplace site.
- The provider splits the amount: the seller's share to their balance, the commission to the platform.
- Seller payouts follow a schedule or occur after order fulfilment is confirmed.
What to plan in advance
- Payout timing: immediately, after delivery or after the refund window.
- Refunds and disputes: who compensates and how commission is handled.
- Currencies and countries of sellers and buyers.
- Tax and documents: commission invoices, reporting for sellers.
- Chargebacks and rules for sellers with high dispute rates.
Frequently asked questions
Does a marketplace need its own payment license?
Usually not at launch if you use a licensed provider with a marketplace solution. As turnover grows, your own license may pay off — that is assessed separately, see financial licenses.
How should sellers be vetted?
The payment provider handles basic KYC/KYB, but the platform should add its own rules: documents, product or qualification checks, ratings.
Which provider should I choose?
One that operates in your sellers' and buyers' countries, supports the payment and payout methods you need and accepts your category of goods or services. We help choose under payment gateways.
Designing payments for a marketplace? Send a request on the marketplaces page and we will design money flows, select a provider with split payments and integrate seller onboarding and payouts.
This article is for information only and is not legal advice.