More than 54% of millennials make purchases online, and often do not consider the payment platforms that power these transactions. As these marketplace companies become more popular, the more important it is for robust payment solutions. In marketplaces the payment process is more complex, and these complexities are reflected in chargebacks. This occurs when a seller is forced to return funds to the buyer, which can be manipulated by fraudsters. On a global aspect, these marketplace companies also have to deal with varying legislations. Many marketplace companies, such as AirBnB and Uber, use financial technology to provide a secure platform for consumers. Not only do these companies process transactions, they also ensure security and legal compliance.

With the complexities of online transactions, I think it is important that marketplace companies have a reliable platform to provide secure payments. With millions of vendors having to be paired with millions of users, transactions can be vulnerable to attacks on security. It is important to use financial technology that can carryout the general business of the company, and specialize in security online. It is also helpful that financial technology companies know the tax codes and laws of other countries, to ensure marketplace companies are within regulations.

 

Source: How Fintech is Bridging the Gap With Marketplace Companies