Dec 27, 2023
What is a marketplace payment service provider or payment gateway?
This article will describe the meaning of payment service provider in the context of online marketplaces and two-sided platforms. It will give a definition and some examples where possible.
Definition of payment service provider
A payment service provider or payment gateway is a third-party service provider that facilitates monetary payments on your platform. Examples of marketplace payment providers are Stripe, PayPal, and MANGOPAY.
Providing online payments is a heavily regulated field where security and technical reliability are of the essence. Third-party providers take care of compliance and security for you. The providers usually charge a fee per transaction and/or payout. Maintenance fees may also apply.
When evaluating payment service providers, you should compare their marketplace-specific features, pricing, customer service, and ease of integration to find the right one for your marketplace.
Learn about other marketplace concepts
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