[bsa_pro_ad_space id=1 link=same] [bsa_pro_ad_space id=2]

Skip to Content

Interactive

UK – SafeCharge reveals research urging Fintech Innovation for payments

By - 22 June 2017

New research from Edgar, Dunn & Company, commissioned by Safecharge, the payments services partner for the world’s most demanding businesses, has revealed the challenges inhibiting the growth of marketplaces and is calling for fintech innovation to address them.

The report ‘Marketplaces Best Practices for a Successful Payments Strategy’ also identifies solutions to address the specific needs of the marketplace business model.

Marketplaces are seeing unprecedented growth. According to a study from the Ecommerce Foundation, almost 40 per cent of the world’s online retail market will be controlled by marketplaces by 2020. Despite this accelerated growth, the report highlights that marketplaces face complex challenges that fintech systems do not currently address.

“As the marketplace sector matures and scale, it has become clear that the payments technology required to keep these businesses running has not kept up,” said Pascal Burg, Director Edgar Dunn & Company. “From seller onboarding to regulation and fraud, marketplaces across Europe and beyond are constrained by existing systems. The fintech sector needs to rise to the challenge and deliver the technology these businesses desperately need.”

The core difference between traditional ecommerce merchants and marketplaces is in the relationship between buyers and sellers. Traditionally, there is one seller and many buyers. In the marketplace model, there are multiple sellers and multiple buyers, with each transaction involving three parties: the seller, the buyer and the marketplace.

“New business models, such as marketplaces, demand a new approach to payments. Money flow is shifting from one-to-many to many-to-many, as consumers flock to marketplace platforms where they can buy goods from a universe of different sellers,” said Yuval Ziv, COO at SafeCharge. “This research demonstrates that fintech isn’t meeting the needs of marketplaces today. In the coming days we’ll be revealing an innovative solution which addresses these challenges for marketplaces while enabling them to remain in full control of operations.”

Share via
Copy link