Payment gateway options avail to marketplace web apps?
Hi everyone! Non-technical founder here, working on a web-based 'marketplace app', sort of like Task Rabbit. (I'll explain more below)
I am having the HARDEST time identifying a viable payment gateway to use for our site that is convenient and user friendly. I really don't like the UX of PayPal! Anyway, understanding the different payment gateways (PayPal/Stripe/Dwolla/Plaid/BBVO) has caused me so much confusion and anxiety. I don't even know what's what!
I feel like a total idiot, because I just can't figure it out!
We are a startup, working on a slightly upgraded MVP. We are very critical of design and UX/UI and feel that re-directing someone to PayPals website is awful. Safe, but awful. We want this to be a smooth, easy transaction. Is it very difficult to institute a payment gateway and be PCI compliance. (this question is what brings us back to PayPal).
When I say we are similar to Task Rabbit. What I mean is, we are a platform where Sponsors register and sign up, they would then use their debit/credit card to Create a challenge/task for any amount, $5, or $50. Whatever they feel like.
At this point, they would challenge a "Participant" (i.e., family/friend/stranger) to complete a task. If the Participant completes the task, they should receive the money right away.
Currently, the Sponsors payment is paid directly to our, call it, 'house account'. (Is this the proper lingo?) We want it to go to our account, because it shows commitment on the Sponsors behalf ,and the Participant knows it's available if they complete the task - meaning, the Sponsor can't back out and not pay them - once the challenge/task is accepted.
Regarding Stripe Connect: Is it true that the user must have a Stripe account to get paid out? And that it also requires someone to upload their ID's - is this true? I also saw something where it's like $2.50 per user/month?
Please, is there anyone who would be willing to help explain the options available to me?
Stripe is the default option nowadays, i'd say.
I have a marketplace and I use Stripe. I believe Stripe is your best option. With Paypal and Plaid the user will be redirected out (in case of Plaid to a bank selection page) and this will hurt your conversion. With Stripe, even though a customer has to authenticate, they are not being redirected in and out of your app/webpage. Go with Stripe, I've used them for years. Only issue with Stripe is they are very weak when it comes to protecting you from fraud.
@MassageJoy I appreciate your feedback! Does Stripe charge a $2.xx/user/month fee? And will the Participant (receiving payout) need to show drivers license or other forms of identification?
At the end of it all, you basically get a ‘Connect with Stripe’ button in your Participant admin. When they click on that button, if they are logged in to Stripe in the same browser , they will see ‘TheBossMan would like to use your Stripe account for...’ .
When they accept it, u get some sort of ID which allows you to perform actions like charging customers on behalf of their Stripe account. If they are not logged in, they will be asked to register with Stripe.
I think identification / verification is based on what countries they are in / risk profile? I’m not 100% sure.
Once you grow, they are other options to provide a better flow using different options in the Stripe Connect group of products. Just get started first and worry about these later on.
When you first launch your marketplace, you will be on boarding initial batch of users which are your early adopters that should really love your product. If a ‘slightly bad’ UX prevents them from being a Participant, then it’s not just a UX/conversion rate problem with getting their payment options set up. There might be a core value proposition problem with your marketplace that needs to be solved...
Excellent advice. I really appreciate you speaking some light into this.
Are there some websites you can recommend that are using Stripe to see what it would look like as a User?
Hi, I recommend you contacting Stripe Connect sales, Stripe, in general, is a super responsive company. There is some info about their pricing here:
https://stripe.com/en-es/connect/pricing
Regarding redirecting the user to a payment site, Stripe has required this in the last version because it's SCA (Strong Customer Authentication) compliant, this is a European regulation where the user can be asked to additional proofs (like 3dsecure, etc) to approve the payment.
I would suggest you move forward quickly, choose whatever works now, Stripe connect I think it's one of the best platforms for marketplaces.
Start choosing what's ok enough and go ahead :)
Best of luck!
@arielc Thank you Arielc. When I consider a long term strategy, is there a lot of investment/development in being PCI compliant?
I think forget about being PCI compliant.. it’s not worth it to think about that for the foreseeable future.
Agree with using Stripe connect.
BlueSnap.com have flexible marketplace payment, with an option to pay to the marketplace vendors with wire-transfer or other means. They also support different methods like rev-share if I remember correctly (I looked at their marketplace model long time ago)
@Danbars thanks! I'll check them out.
This comment was deleted 7 years ago