International P2P Marketplace - Payment Systems

June 4th, 2013

We're building our alpha and are challenged right now with payment.

Our marketplace is international and allows users to earn income selling their products on our site. We've built in Stripe to accept payments internally as a company and then to disperse them out on a monthly basis. I haven't found a good third party solution that is compliant to execute on that. I'm not looking forward to using PayPal if that's the only solution.

Someone who knows what Airbnb, ETSY, 99Designs or others did in the early days would be the best solution, but I haven't found too much yet as they have more robust systems at the present.

Could anyone help recommend something they have used or looked into? Any help would be greatly appreciated.

Warm Regards,

Derek

Anonymous

June 4th, 2013

For bulk dispersal of funds to multiple accounts checkout Hyperwallet - http://www.hyperwallet.com/

Derek Bugley

June 4th, 2013

Everyone's comments and help is very much appreciated - it brings me back to my financial analysis / broker days which I was trying to forget, ha.

Michael L - Answers:

(1) They could be both - We're based here in Boston our first market is going to be South Africa so our users are going to be producing content for a global audience of purchasers. There will be example of people within South Africa buying their content and also people from other countries purchasing their content. I'm assuming that we will need to find a third party payment / PCI compliant provider to escrow those payments and then payout minus our transaction cost.

(2) We are focusing on one country to start, but our platform is going to allow us to scale everywhere and we will allow for other people in other countries to build their own content and sell it from the very beginning.

(3) Typical ticket size is around 10$

(4) 20% transaction fee on each purchase of the digital content

Thank you for your assistance, this is a big pain for us at the present, the only thing really stopping us from launching. I want to ensure we're doing things right and legal on day one.

Richard Gilbert Director, SME Partnerships & Business Development, North America at Payoneer

July 27th, 2016

Hi Derek,

Are you familiar with Payoneer? You mentioned AirBNB, 99Deisgns, etc. I think Payoneer powers their international payments to all of the contributors to those marketplaces. I was working on an early partnership with them and know some folks there if interested.

Richard

Anonymous

July 18th, 2017

Payoneer seems to be a good option for international marketplaces but still difficult to understand the implementation for a non-tech.

Anonymous

July 3rd, 2013

Good overview.

Jacob Kojfman Experienced technology and corporate lawyer, focusing on SAAS

June 4th, 2013

Hi Derek, Might I recommend hyperwallet? hyperwallet.com Please help me find a cure for breast cancer. Donate here: www.runforthecure.com/goto/jacob Jacob Kojfman 604 318 4539

Eric Rogness Technical Product Manager

June 4th, 2013

Unfortunately, Balanced Payments is US only.

Juston Brommel Growth Strategist & Advisor to CEOs

June 4th, 2013

Hey Derek, We should talk. My company built an ewallet solution on top of a massive international payment system. Are you planning to be at the Founder Dating event tonight at V-lounge in Santa Monica? Feel free to reach out directly. My contact info is in my sig file. http://members.founderdating.com/profile/2760/juston-brommel Cheers, Juston

Michael Levinson Product Executive, Marketplaces and Payments

June 5th, 2013

So for now you have sellers only in SA, so you only need to solve remittance there? PayPal is expensive (2%) but it will work. Wells Fargo supports FX Wire into South Africa, and I think HyperWallet may support SA.

As for escrow, depending how you structure your marketplace, you might not need to do it this way. If you're selling services, could you subcontract your guides? If you're just paying your contractors, then it's not payment. Of if you're selling digital goods, could you take inventory and then resell it as an e-tailer? e-commerce is not payment.

As for PCI compliance, you're already using Stripe - I assume with a token implementation - so you're not seeing the credit cards anyway. You bill your customers, take the money, and turn around and pay your vendors to fulfill your promise to the customer. Of you could use PP chained payments but there is complexity there.

$10 ticket size is...small. It costs at least a few bucks just to get a payment from the US into SA.

Anonymous

June 4th, 2013

Hi Derek, We also have an international P2P marketplace and as far as we could ascertain, Paypal Chained payments was the only secure, compliant global solution. I'm assuming you're taking a percentage of each transaction? It was actually easier than expected in some ways, and Paypal's support is quite good. Best, Cynthia Founder & CEO AbbeyPost

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