Dec 27, 2023

What are split payments in a marketplace?

This article will describe the meaning of split payments in the context of online marketplaces and two-sided platforms. It will give a definition and some examples where possible.

Definition of split payments

Splitting payments means that the customer’s payment is divided among multiple recipients. On marketplaces that use commission as a monetization method, this often means the provider and the marketplace. The provider receives the price of the listing with the marketplace’s commission deducted, if applicable. The marketplace collects its commission from the payment in the form of a fee from the provider, customer, or both.

Not all payment service providers offer the option to split payments between different parties, so it’s an important consideration in choosing the right provider for you.

Learn about other marketplace concepts

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