How platforms and marketplaces can leverage multi-split payments to boost growth

Platforms and marketplaces constantly seek innovative strategies to drive growth and remain competitive. One such strategy is the adoption of multi-split payments, a sophisticated payment solution that offers flexibility and efficiency in distribution of funds. Let’s explore the potential of multi-split payments, diving into how this advanced payment technology can help marketplaces and platforms propel growth, enhance user experience, and unlock new opportunities for expansion.

What are multi-split payments?

Multi-split payments, also known as split payments, is a feature where a single transaction amount is automatically divided and distributed among multiple recipients or beneficiaries. This service is typically provided by highly specialised Payment Service Providers (PSP’s) and can be particularly useful in various scenarios, including online marketplaces, crowdfunding platforms and leisure platforms that incorporate revenue-sharing agreements.

In a multi-split payment scenario, when a buyer makes a payment, the total amount is automatically divided according to predefined rules or percentages and distributed to the respective recipients in the right currency. Each recipient receives their designated share of the payment directly into their account, streamlining the process of revenue distribution and eliminating the need for time-consuming manual calculations or numerous separate transactions that are prone to error.

7 ways how leverage multi-split payments can contribute to growth

Besides being able to work more cost-efficiently and accurately and ensuring that every beneficiary gets its fair share, implementing multi-split payments also has other important advantages that can help you boost the growth of your marketplace or platform.

1. Attract more sellers
   Multi-split payments enable platforms to offer flexible payment options to sellers, allowing them to receive their share of revenue directly and instantly. This can attract more sellers to join the platform, as they appreciate the convenience and speed of getting paid.
2. Encourage large sellers and merchants
   Platforms can use multi-split payments to accommodate larger sellers or merchants who may have complex revenue-sharing arrangements or multiple beneficiaries. By offering a seamless way to split payments among various parties, platforms can appeal to these entities and encourage them to partner with them.
3. Improve user experience
   Multi-split payments enhance the user experience for both buyers and sellers by simplifying the payment process. Sellers don't need to manually calculate revenue splits or manage payments to multiple parties; instead, the platform handles this automatically in one transaction. On the other hand, buyers can pay for the products they purchase from different sellers on a platform and pay for these all at once upon check-out. This streamlined process improves satisfaction and encourages repeat transactions.
4. Expand offerings
   Platforms can use multi-split payments to expand their offerings and attract a wider range of sellers. For example, they can accommodate service-based businesses who may have unique revenue-sharing needs. This diversification of offerings can attract new audiences and drive growth.
5. Increase revenue streams
   Multi-split payments allow platforms to monetize transactions by charging fees or commissions on each split. By facilitating a large volume of transactions and automatically distributing revenues, platforms can generate additional revenue streams while providing value-added services to users.
6. Build trust and loyalty
   Transparent and efficient revenue distribution through multi-split payments can build trust and loyalty among users, as they have confidence that payments will be handled fairly and accurately. This trust can lead to increased engagement, referrals, and long-term loyalty to the platform.
7. Support Global Expansion
   For platforms operating in multiple countries or regions, multi-split payments can simplify cross-border transactions and accommodate different currencies and payment methods. This flexibility is essential for supporting global expansion efforts and attracting sellers and buyers from diverse markets.

Do you want to know more about how multi-split payments can help you grow in a competitive landscape? Contact us!