Online Marketplace Model

Well-known online sales companies, such as Amazon, Uber, AirBnB, and others represent a relatively new business model called online marketplace model. The difference between the traditional model and an online marketplace is a more complex transaction processing mechanism. When a transaction is processed, the processor withholds a certain fee. However, in an online marketplace, certain amounts (from the overall transaction amount) also have to be funded to the marketplace owner and various affiliates. In order for online marketplace to function effectively, split funding logic needs to be embedded in the online marketplace software. So, to become a successful online marketplace operator, you have to find a payment platform, in which split funding functionality is implemented.

To learn more about online marketplaces, read the respective article on Paylosophy

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