Split Payments

What are split payments?

Split payments, or divided payments, are a payment-processing method used in marketplaces where transactions involve multiple parties. Instead of the full payment going directly to the seller, split payments automatically distribute the amount between several recipients — such as sellers and the marketplace platform — according to predefined rules.

How do split payments work in a marketplace?

With the growing popularity of marketplace business models, where consumers buy products or services from different providers, the split payment solution has become essential.

Managing payments from many sellers can be complex and time-consuming. A split payments system makes it easier by dividing earnings automatically between all parties involved.

How do split payments work in collaborative economy platforms?

Platforms within the collaborative economy — like Vinted or Wallapop — face similar challenges. Their operations involve multiple buyers and sellers, plus commissions from the platform itself.

Because of these specific needs, they can’t rely on just any payment provider. Only specialized payment platforms can handle such complex payment flows efficiently and smoothly for all participants.

Benefits of split payments for businesses

Here are the main benefits of using split payments:

• Transparency: Provides a clear, transparent breakdown of payments among all participants.

• Efficiency: Automates payment distribution, reducing administrative workload.

• Scalability: Allows marketplaces to grow and add more sellers without increasing operational burden.

If you want to explore more payment methods, you can find them in the marketplace section of our website.