What to Look for in an Embedded Payments Provider

Embedded payments are now standard infrastructure for UK marketplace platforms. The providers available vary significantly in how they handle marketplace-specific needs.

Choosing the wrong provider creates problems that compound over time: manual work, seller complaints, compliance gaps, and costs that rise as transaction volumes grow. This guide covers the six criteria that matter most when evaluating an embedded payments provider in 2026.

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What embedded payments actually involve for marketplaces

Embedded payments integrate payment processing directly into your platform. Buyers pay within your interface. Sellers receive payouts through your system. The payment experience carries your branding throughout.

For marketplaces, this goes beyond a standard checkout. Each transaction involves multiple parties:  the buyer, one or more sellers, and the platform taking a commission. The payment infrastructure must handle all of these simultaneously, automatically, and in compliance with UK regulations.

Generic payment processors handle single-party transactions. Marketplace operators need providers built specifically for multi-party payment flows.Our comprehensive guide unpacks everything you need to know about embedded payments.

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Six criteria to evaluate before choosing a provider

1. Marketplace-specific functionality

The most important question is whether the provider was built for marketplaces or adapted from a general-purpose payment solution.

Purpose-built providers offer split payment functionality as a core feature, not an add-on. This means automatic distribution of funds across sellers, commission collection, and multi-party reconciliation within a single transaction.

Look for support for escrow payments, where funds are held until conditions are met. This is essential for service marketplaces where work must be completed before sellers receive payment. Check whether seller onboarding is automated, including KYC verification and AML checks, or whether it requires manual intervention.

Ryft processes split payments to multiple sellers per transaction automatically. Tuft, a UK marketplace, reduced payment processing costs by 62% after switching from a generic provider to purpose-built marketplace infrastructure.

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2. Regulatory compliance and FCA licensing

UK marketplace operators must work with providers that hold the appropriate regulatory authorisations. The Financial Conduct Authority licences payment service providers under the Payment Services Regulations 2017.

An FCA-authorised provider handles compliance on your behalf. This covers PSD2 Strong Customer Authentication for card transactions, KYC verification for seller onboarding, and AML monitoring across your platform's transaction flows.

Providers operating without FCA authorisation in the UK create significant regulatory risk for marketplace operators. Verify any provider's licence directly on the FCA register before proceeding. Ryft holds FCA Licence.

European expansion requires additional consideration. PSD2 compliance, SEPA payment support, and multi-currency processing become necessary as platforms grow beyond the UK.

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3. Pricing structure

Flat-rate pricing models charge a fixed percentage per transaction regardless of volume. This works at low transaction volumes but becomes expensive as your marketplace scales.

Volume-based pricing reduces per-transaction fees as your monthly processing increases. The difference is material: at £500,000 per month processed, even a 0.3% reduction in fees represents £1,500 monthly — £18,000 annually.

Ask providers for a total cost breakdown that includes per-transaction fees, monthly platform fees, payout fees, currency conversion charges, and chargeback costs. Some providers advertise competitive processing rates but recover margin through ancillary fees.

Compare the total cost of ownership across comparable transaction volumes rather than headline rates alone.

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4. Implementation timeline and technical requirements

Integration complexity varies significantly between providers. Enterprise-focused platforms often require months of technical development before going live. Providers designed for UK marketplaces typically offer faster implementation through pre-built marketplace modules and dedicated technical support.

Evaluate the quality of API documentation. Sandbox environments should be available for testing before production deployment. Check whether the provider offers direct technical support during integration or relies solely on documentation.

Ask for realistic implementation timelines from reference customers with similar marketplace structures. A provider quoting two weeks should be able to point to case studies supporting that claim.

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5. Support quality

Payment issues affect your sellers and buyers directly. A failed payout or unresolved dispute damages seller retention and buyer trust faster than almost any other operational problem.

Assess whether support is provided by in-house teams or outsourced. Determine whether support is available 24/7 or limited to business hours. Test response times before committing — send a pre-sales enquiry and note how quickly you receive a substantive response.

UK-based support matters for UK marketplace operators. Advisors who understand the UK payment environment, FCA requirements, and the specific challenges of marketplace operations provide better support than generic ticket-handling services.

Ryft provides 24/7 support from a UK-based team with direct experience in marketplace payments.

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6. Omnichannel capability

Many marketplace operators begin with online payments and later add in-person processing for events, pop-ups, or physical locations. Switching payment providers mid-growth is disruptive and expensive.

Choose a provider that supports both online and in-person payment processing from the outset, even if you only need online payments initially. This preserves optionality and avoids the integration work of adding a second payment provider later.

Check whether the provider handles card terminals, virtual terminals, and payment links alongside standard online checkout flows. Unified reporting across all payment channels simplifies reconciliation and provides a complete view of your platform's payment activity.

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Questions to ask during a provider evaluation

Before committing to a provider, get direct answers to these questions:

• How many sellers can receive payouts in a single transaction split? 
• What is the seller onboarding completion rate and average time to verification? 
• Can you provide a full fee breakdown for our projected monthly volume? 
• What is your implementation timeline for a marketplace of our size? 
• Who handles our account day-to-day, and what are their hours? 
• Do you support both online and in-person payments from a single integration?

Providers who cannot answer these questions specifically are likely not designed for marketplace use cases.

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Choosing an embedded payments provider for UK marketplaces

The right embedded payments provider reduces costs, simplifies compliance, and improves the payment experience for your sellers and buyers. The wrong one creates manual workarounds, rising costs, and regulatory exposure as your platform scales.

Prioritise marketplace-specific functionality and FCA licensing as non-negotiable requirements. Evaluate pricing on total cost of ownership rather than headline rates. Assess support quality before signing a contract.

Speak to Ryft's payment experts to understand how purpose-built marketplace infrastructure compares to your current provider.