5 Signs Your Marketplace Platform is Ready for a New Payment Partner

In the early days of setting up your marketplace, you probably went for one of the popular payment processors because they’re quick and easy to set up, and you weren’t processing much transactional volume. What you are likely now realising is that while these providers were good partners to get you off the ground, you have now outgrown them. You are probably looking for a solution which is tailored to your customers, your business, and the bottom line at the forefront of your mind. 

Here are 5 signs you are ready for a new payment partner:

1) Processing Fees Start Eating a Lot of Your Profit Margin

Growth in transaction volume beyond £250k per month will inevitably lead to higher processing costs. If you find that your current payment partner's fees are cutting into your profits excessively, it is time to consider a new payment partner. 

One important aspect to consider when evaluating payment partners is the transparency of their fee structure. Some payment providers may have hidden fees or additional charges that can significantly impact your bottom line. Ryft provides customisable fee structures, allowing you to tailor the fees to your specific business needs and optimise your profit margin. 

2) Increased Fixed Costs  

As your platform attracts more sellers and expands its reach, you may encounter a surge in fixed costs. These costs can include integration fees, monthly maintenance fees, and other charges. 

‘Multiple account-based fees’ have significantly increased - some marketplaces have to pay a monthly fee per seller. Once they have hundreds or thousands of sellers this can add up incredibly quickly. You can avoid this.

If these fixed costs are significantly impacting your margin, it’s an indication that your current payment partner is no longer suitable. 

3) Pressing Need to Automate Processes

Automation is key to streamlining the payment process on your marketplace platform. As the number of sellers grows, manual payouts and reconciliation become increasingly time-consuming and prone to errors. 

If you find that your current payment partner does not offer sufficient automation capabilities, it will hinder your ability to handle the growing demands of your platform. 

Automated payouts, tailored to your specific requirements, ensure that sellers receive their hard-earned money in a timely manner. No more tedious manual calculations or endless spreadsheets. 

Ryft can automate all your payouts and reconciliation, giving you a clear and accurate overview of your platform's financial health, and enabling you to make informed decisions and drive growth.

4) You’ve Outgrown the Original Signup Process

As your marketplace platform attracts more sellers, you may notice a drop-off in the signup process. This issue could be a result of your current payment partner's limitations. A complicated or lengthy signup process deters potential sellers from joining your platform.

Instead of sending sellers away from the marketplace and to a payment provider's website to sign up for payments, marketplaces can use Ryft to white label our KYC and build it into their own onboarding flow. This speeds up the sign-on process for sellers, reduces the number of people that drop off during onboarding AND gives the platform more credibility.

5) New Development Requirements

As your marketplace platform scales, you may encounter new development requirements that your current payment partner cannot accommodate. These requirements could include custom features, integrations with other platforms or systems, or enhanced security measures. If your current payment partner has limitations in meeting these development needs, it will impede your platform's growth and hinder your ability to offer an optimal user experience. 

Ryft can help marketplaces with specific development requirements!

Think You’re Ready for An Alternative Payment Partner?

Most businesses recognise they need to switch payment partners long before they actually do, the decision is always to delay - because the switching process is perceived to take too long.

Do these signs seem familiar to you? If you mention switching at board meetings and someone from the team constantly complains about processing fees and evaluating other PayFacs - you’re ready for the switch. 

Ryft is as easy to set up as other popular payment processors but is tailored and designed with your business in mind. 

Don't let payment processing hold you back—contact us today and unlock the full potential of your marketplace platform.