Know Your Clients and Business Success: The Way of Trusting Online Marketplaces

Roobykon Software
  • Date Published
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KYC is a necessary condition of business. In the article, we tell about the bases of this system in relation to the narrower sector – to an online marketplace.

Payment Solution for a Marketplace: BlueSnap

Choosing a reliable payment system is an extremely important step for any e-commerce project. However, with the different online marketplace payment solutions available now, you may get confused comparing various payment gateway vs payment processor tools.

Luckily, the experts of Roobykon Software have gathered some valuable insights about the features essential for good payment processing apps. BlueSnap is a great example of such software, and you can learn more about this online e-commerce payment system from our material.

Modern Tendencies in Payment Solutions

Before describing BlueSnap, we want to help you understand the key payment processing features you should look at when choosing a marketplace payment service provider.

Know Your Customer

In simple words, Know Your Customer, or KYC, is a process aimed to verify the identity of your clients. This procedure requires collecting information about any individual or company receiving payments. Usually, the collected data includes at least the person’s name, birth date, and address, but in some cases, KYC may require other legal documents and/or ID verification. The details may vary depending on laws in every individual country.

The KYC process may become challenging for a marketplace payment processing due to a large number of providers the platform cooperates with. Handling such verification for every client manually is inefficient. What is more, many individuals can leave the platform if they find the KYC process too complicated or time-consuming. Therefore, you should look for payment processing software that provides tools for KYC automation.

There are two approaches to KYC:

  • “White label” Process – this means that a user account is created from the data user provides to the marketplace. In this case, customers might not even be aware that they have an account for online payment processing.
  • Direct Interaction with the Provider – expects all users to manually create an account for a payment processing platform.

Both of these approaches have pros and cons. The white label will provide a smoother experience, but direct interaction can be beneficial in case you use a recognizable provider. BlueSnap adopts the first approach, so your marketplace will gather all the required KYC data and submit it to the provider. Notice that BlueSnap will verify all the information they receive, so make sure you have all the necessary data. This verification procedure is similar for all trustworthy payment processing companies.

Splitting Payments

In most cases, customer’s payments are split into three parts: provider’s price, marketplace commission, and a payment processing fee. This scheme may be effective for many e-commerce purposes; however, some payment solutions lack functionality when it comes to splitting money among multiple vendors.

It might seem an obvious solution to transfer all revenue to a single bank account and split it among the parties manually. However, being extremely challenging to scale well, this solution might also be illegal. In most jurisdictions, you cannot simply hold money on behalf of people that are not your direct employees – you need a license that is usually hard to get.

So, if you want to feature a multi-vendor shopping cart or a referral program at your platform, you should look for a payment solution with a payment splitting option. BlueSnap can serve as a great example here because it allows you to define splits for both one-time and multiple transactions. Furthermore, their solution has tools to keep your vendors informed, which makes the splitting process convenient and transparent for all parties.


There are some other modern trends that make the payment gateway process more convenient and effective.

Other Beneficial Features:

  • Delayed Payout and Escrow – this makes a platform able to hold the money until the customer confirms the transaction’s success;
  • Dispute Handling and Fraud Prevention – the chargeback costs can be covered by either the marketplace or the payment service provider to provide more value in transactions;
  • Tax Reporting – several payment apps have special tools to automate this process.

Talking about BlueSnap, they offer a full suite of reporting tools to help your vendors track their transactions. BlueSnap provides you with a possibility to define payment delay not just for a whole marketplace but also for each individual vendor. In the case of a chargeback, they automate a refund process so it will be split among the marketplace and associated vendors respectively to commission schedule. Notice that commission fees will be charged to the marketplace owner.

BlueSnap – Payments Around the World

Having been on the market since 2002, BlueSnap has become a global payment company that raised over $100 million in funding. Recently, they have created an online marketplace payment solution that combines all the modern trends. Unlike some other marketplace payment gateway, BlueSnap allows you to split payments between multiple vendors. Their solution offers resources to manage your vendors as well as reporting tools to control the transaction history. Finally, BlueSnap has a strong international presence, making it a perfect solution for a marketplace.


We recommend choosing a solution according to your needs, because even the best cryptocurrency payment gateway may lack features vital for your business. When it comes to the marketplace, the software should have the functionality to not only cut out the payment processing fee but also split payments among multiple parties. Effective payment gateways for marketplace also need KYC automation tools to help you easily manage the client’s data. The solution for marketplaces by BlueSnap combines these features with other reporting and control tools, so it is worth taking a look at.