Braintree Launches Mobile Payments for Online Marketplaces
By Ina Steiner
Global payment platform Braintree launched a new service called Marketplace designed to simplify how marketplace owners pay and manage sellers. The company announced that online marketplace TaskRabbit had signed on as its first Marketplace customer, enabling buying and selling within its marketplace to happen entirely from a mobile device.
Marketplaces work by either staying out of the transaction and letting buyers and sellers figure out payments between themselves, like eBay (at least before it made PayPal nearly mandatory); or by processing payments on behalf of customers and forwarding the payments (less fees) to sellers, like Amazon.com.
Braintree's new Marketplace solution is for the marketplace that likes the control of the latter model, but doesn't want to deal with the administrative and regulatory burdens of processing payments:
"With Marketplace, buyers are able to pay in a single touch and sellers can receive money directly on their mobile devices. The money flow is managed by Braintree so the marketplace operator never touches the funds, alleviating many compliance and regulatory burdens. Braintree also handles 1099 tax reporting, allowing the marketplace to focus on innovation and growth rather than handling IRS requirements."
Marketplaces can integrate with Braintree through its API and gives them some flexibility in how to set up the payment flow. "For example," according to the company press release, "Marketplace allows merchants to tailor payments according to their business models either by holding payments in escrow until goods are shipped or disbursing funds immediately."
Braintree already has customers including Airbnb, Angry Birds, Fab, Hotel Tonight and Uber.
Marketplace sellers can sign up to be paid out the next day through Venmo - without bank account and routing information - or to a bank account via ACH transfer within two days. Similarly, buyers can make purchases in one touch, without entering their credit card information, using Venmo Touch.
Marketplace is available immediately to Braintree customers at no additional cost. For additional details, visit Braintree's website.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to email@example.com.
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