As per a recent study report, around 59 percent of website users of ecommerce marketplace are known to stay loyal to a single online multi-vendor unit due to the overall speed of payments. At the same time, it is observed that around 13 percent of the sellers have considered switching to another form of virtual multi-vendor shopping unit because of the clumsy online payment process.
The manner in which you are processing the payments on the virtual or ecommerce shopping marketplace aims at influencing your overall ability to retain both the buyers as well as the sellers. For the creation of an effective online payment system for the marketplace, you are required to be aware of all the essential elements that remain crucial to the seamless functioning of the given system.
Elements of Online Payment System for a Virtual Marketplace
It is referred to as the transactional channel that exists between a buyer & a seller –the online equivalent of the physical POS (Point of Sale).
A payment gateway is known to authorize the online payments while preventing frauds. A payment gateway is known to authenticate the credentials of the customers before presenting the provided information to the processor of the payment. Then, the same transmits the approval code along with other confirmation details to the end customers. A payment gateway can help in providing following features:
- Fraud prevention solutions
- Payment reporting services
- Multi-jurisdictional or multi-currency systems through a single interface
- Multiple payment options –debit cards, credit cards, cross-border payments, e-wallets
It could be referred to as the equivalent of the grocery cart –buyers go forward with putting goods into the shopping cart and then proceed for the checkout process.
A shopping cart for the virtual marketplace is capable of performing specific functions as:
- Defining the total costs of the purchased items
- Adding delivery fees
- Subtracting discounts
- Defining sales tax
- Supporting the refund process
- Providing the ability to pay for specific orders for multiple vendors at a time
Attributes of a Successful Payment System for the Marketplace
There are some specific characteristics of the payment system that remain vital for marketplace users. These are:
- Flexible options for payments
- A shorter turnaround time for money transfers
- Capability of receiving payments every time a vendor sells a product
- Added security
Additionally, it is also recommended to take into account the paying preferences of the clients along with the e-commerce marketplace model.
Acceptable Payment Methods
As per a recent research report, cash-on delivery and debit cards are regarded as the most common forms of online payment methods that are acceptable.
Cash & debit cards are known to allow the users to get instant online payment confirmation. At the same time, these payment modes tend to have a wider global presence as well. Direct debit is known to allow e-commerce multi-vendor providers to gather online payments from the customers who present the necessary bank information while authorizing the virtual shopping marketplace for debiting the same.
Digital payment systems deliver the benefits of reduced risks as well as reduced transaction costs. This is because the given method is known to allow the customers to store as well as use money online. They are not required to enter the card details upon every shopping instance. Moreover, the overall risk of any fraud also gets reduced as the payments tend to be authenticated with the login credentials of the customers.
Cash-on delivery is known to impose no risks on the customers when it comes to losing money in case of issues related to product delivery.
Make the most of the right payment systems for your virtual marketplace to enhance the overall user experiences.