Today, online marketplaces account for 62% of all ecommerce spending as 
sellers embrace a more flexible, dynamic form of retail across multiple channels. 
But as ecommerce options expand, platforms will need to invest in payment methods that suit the diverse needs of sellers in different markets.

Online marketplaces account
for 62% of all ecommerce spending

7 out of 10 of the fastest growing
marketplaces are outside the USA

Growth in the number of
marketplaces since 2007

Sales value of the four largest
global online marketplaces by 2027

For sellers, payouts are the end goal of all their activity on the platform. Sales, growth, inventory – it doesn't matter if they can’t withdraw their earnings from the marketplace.

Transparent fees:
FX fees, withdrawal fees, funds transfer fees… sellers face costs from payment service providers at every turn, directly eating into their profits. What’s more, fees for international wire transfers and card payments can be as high as 5% per transaction. For marketplaces, providing upfront and lower payout fees mean happier sellers and longer retention, as well as giving sellers more resources to invest in their growth on the platform.

Flexible payout schedules:
Frequent and customized payout schedules can help sellers manage their finances more agilely, improve cash flow, and invest back into their businesses.

Simple FX management:
Sellers operating in multiple currencies have to consider FX fluctuations, too. Real-time, transparent foreign exchange rates that can be locked and held for longer help to reduce unexpected costs and mitigate risk.

Instant payments:
Faster payouts mean quicker access to funds, enabling sellers to operate more efficiently, react to market changes, and support their personal needs. Instant payments are a fast growing segment, with volumes expected to grow by 289% between 2023 and 2030.

Payout method optionality:
Sellers operating in multiple markets want to get paid in different ways in different places. Whether that’s via Swift, ACH, or Visa Direct to a bank account, card, or wallet, providing more payment options enables your sellers to grow beyond borders.

Fast and simple onboarding:
Sellers in emerging markets are often forced to sign-up with an external payout provider in order to get paid. This requires additional onboarding, managing multiple payment providers and limiting seller support. Ideally, global sellers want to have a direct relationship with the marketplace they interact with, be onboarded once, and have all funds in multi-currency wallets with the marketplace.

Reconciliation:
Automated reconciliation of payments data reduces complexity, making it easier to spot data anomalies, problems, or irregularities. It gives businesses more control over their data, resulting in safer management and an improved real-time picture of customer or company finances.

All of these challenges are made worse when working globally, with different compliance regimes, payment preferences, and technology integrations to consider.

International markets are a significant growth opportunity for platforms, with predictions that 33% of global ecommerce will be cross-border by 2028. This requires the ability to acquire new buyers and sellers anywhere and offer them a consistent experience. Each new region also brings unique dynamics and considerations – the speed at which platforms can adapt and serve these needs is effectively the time to market for new regions.

Payments drive acquisition
Where sellers may be skeptical about a new platform, consistent and prompt payouts 
can guarantee and enhance seller experience and encourage continued participation.

Adapting to local norms and preferences is a determining factor in success in 
new regions. For example, offering local currency payouts in markets with a high prevalence of unbanked users might mean paying out to apps rather than accounts.

Different regions also bring their own unique economic context, depending on the cash flow situation of your sellers, which may dictate particular payment schedules, methods, or advances. Your payment system in a new market is your seller promise – without the means to do so effectively, new market entries will flounder.

Local payments at speed
While access to the largest pool of buyers is a key advantage for marketplaces, 
sellers can only reap the benefits if they can also receive payments promptly, efficiently, and flexibly. Loyalty is only as good as the options available – sellers prioritize platforms that can offer the smoothest onboarding experience and fastest payouts. 

This means real-time payouts designed to deliver funds to sellers instantly or within a very short timeframe, providing immediate access to funds. This requires integration with payment service providers that support real-time payment capabilities and can
facilitate quicker payouts to keep sellers happy.

Cost efficiency

For businesses on your platform, international and FX fees cut directly into their profit from sales. By offering lower fees, platforms can acquire and retain more sellers, while also streamlining their back office operations. 

This is because costs rise in proportion to the complexity of your payment network. Working with a PSP or provider that routes payments through multiple partner institutions not only impacts the speed of transaction, but adds fees for every stakeholder that touches the payment.

Scaling payments and compliance
Managing multiple markets means handling a wide range of compliance scenarios region to region (KYC, AML, GDPR), with responsibility for managing risk and compliance sitting with financial teams. But many teams lack the tools and visibility to effectively execute on these obligations, opening up the business to increased risk of fraud or regulatory censure. It also puts global sellers through the burden to re-KYC with different providers if the marketplace is operating across 
several regions with different payout partners. Rapidly evolving technology, market fragmentation, and changing regulations make compliance more challenging.

• Between 31% and 60% of KYC review tasks are still being completed manually by over half of financial institutions, with 90% admitting that manual KYC impacts their ability to make better risk decisions. 

• Manual processes mean that any new seller acquisition or regulation brings new costs. Compliance budgets have increased 22% over the last three years, with global spend on anti-money laundering and KYC services costing billions of dollars every year.

Nium is the global leader in real-time cross-border payments, providing a white-labeled infrastructure for growing businesses to collect, convert, and disburse funds around the world instantly to accounts, cards, and wallets.

Our global payments platform offers a full toolkit for marketplaces to expand with confidence, addressing key challenges of cross-border transactions, currency management, and regulatory compliance for marketplaces operating in multiple countries.

Full control over seller experience:
With Nium’s white-labled infrastructure for marketplaces, platforms can manage the full customer experience in their own environment. Nium is fully embedded in the seller marketplace system, with no 
need for sellers to sign-up separately. Marketplaces have full control over FX, 
speed of payouts, and don’t share their seller user base with other competitors. 

Multi-currency payments:
Nium allows marketplaces to transact in multiple currencies, making it easier to distribute payments to a wider range of sellers worldwide in their own currencies, controlling FX fees and transaction costs.

Real-time payment processing:
Nium processes transactions in real-time, providing 
a smooth payment experience, no matter the region. Immediate payments enhance retention and seller satisfaction while also simplifying treasury management, with accessible funds and agile cashflow solutions.

Comprehensive regulatory compliance:
With 15+ payment licenses worldwide, 
Nium takes care of compliance with local and international financial regulations. This includes anti-money laundering (AML) and know your customer (KYC) regulations to handle checks on sellers in new regions quickly and efficiently.

Flexible payout options:
Nium enables marketplaces to continue using their preferred acquiring partner and offer sellers flexible payout options, including direct bank transfers and payment to cards and mobile wallets. This provides a significant advantage, especially when dealing with a diverse seller base, and gives platforms the tools to enter new markets and adapt quickly to local customs with split payments and variable schedules.

Nium is leading the way in creating a connected, global payment network, based on market-leading technology, robust licensing and end-to-end support. With our flexible architecture, marketplaces have the opportunity to redefine the seller experience, accelerating growth and market entry to tap into a thriving global community. 

This is not just an operational upgrade but a strategic evolution towards creating a more flexible, dynamic, and efficient ecommerce ecosystem for global business. Marketplaces can leverage Nium’s flexible tools to expand rapidly across borders, adding new revenue without incurring new costs and risks. 

To find out more about how the right payout infrastructure can support your growth, book a call with one of our payment experts today.