Discogs is going down the same path as Etsy and eBay by becoming a payments intermediary, and will use the same payments processor to power Discogs Payments that eBay chose.
Discogs is known for its user-created catalog of “physical” music – vinyls and CDs as opposed to digital: “With more than 23 million items available and thousands of sellers, this is the premier spot from new releases to hard to find gems. Because the Marketplace is built on top of the accurate Discogs database, it is easy for sellers to list their inventory and buyers are able to specify the exact version they want.”
Interestingly it is using Adyen to power the new Discogs Payments, the same company eBay is using.
By centralizing payments, these marketplaces can offer buyers a wide choice of payment methods (including PayPal) while gaining greater control over the checkout process, and profiting in the process.
There are pros and cons for sellers: on the one hand, they may get more sales given that buyers may prefer to pay the marketplace rather than an individual, unknown seller. And Discogs promises to charge sellers lower payment-processing fees than standard rates they get through PayPal or credit card merchant accounts.
On the other hand, sellers lose some financial benefits: they must wait for disbursement from the marketplace, and they no longer can get credit-card rewards for paying seller fees. That’s because the marketplaces provide disbursements to sellers less selling fees (that’s how Etsy Payment works, presumably that’s the case for Discogs as well). Those two points may matter less to consumer-to-consumer sellers, however.
Announcement follows:
Today, Discogs announces Discogs Payments, an improved centralized payment experience for customers using the Discogs Marketplace platform. Discogs Payments simplifies the checkout process with integration directly on Discogs.com giving Buyers and Sellers the freedom of using multiple credit card brands as well as continued support of Paypal as payment options. The Discogs Payments integration launches in the U.S. Market today and will involve a continuous rollout as Discogs moves to advance the Discogs Payments platform into additional countries by 2019.
At the foundation of the Discogs Marketplace is the relationship between Buyer and Seller. The Discogs Payment integration will undoubtedly improve this relationship by keeping transactions within the Discogs ecosystem and empowering sellers to positively impact their economics by lowering the costs of transactions and making the management of these transactions more efficient.
Buyer/Seller Benefits:
• Reach new Buyers. New Buyers choose Discogs Payments 3x more often than repeat customers.
• Get lower fees. Take advantage of low fees at 2.7% + $.25. Compare to the standard U.S. PayPal rate at 2.9% + $.30.
• Experience more ways to pay with direct onsite checkout. No PayPal account required.
“The growing customers that are using Discogs Payments to pay are saving us money and time. The rates are lower than PayPal, and if a customer uses Discogs Payments, we aren’t having to take those extra steps to verify payment through PayPal. And getting the money from Discogs is convenient with no hassle. It is also more convenient for the customer.” – Mike Batt – Silverplatters – Discogs Platinum Seller – Seattle, WA
The Discogs Payments product will continue to grow, building a more efficient, localized payment process tailored to Buyers and Sellers alike. Future improvements include opening up cross border transactions, enabling functionality in the Discogs apps, eventual expansion to European countries and more.
Discogs is the user-built database of music; with a catalog of more than 9,900,000 recordings and 5,250,000 artists, Discogs is the largest physical music database and marketplace in the world. Discogs connects buyers and sellers across the globe. With more than 40 million items available, 4.9 million active registered users, and thousands of sellers, this is the premier spot for new releases to hard to find gems. Download the Discogs App for iOS (HERE) and Android (HERE). Join the Fastest, Largest Music Community on the Planet. Get Started. More on Discogs, including logos and brand guidelines at discogs.com/about. Media resources at discogs.mediaroom.com.
SOURCE: Discogs Announcement
