Braintree Marketplace debuts
Braintree is launching a new service called Marketplace, which streamlines payments for your market-style business, enabling you to split payments between you and your providers, effortlessly.
Marketplace is transparent and built specifically with mobile devices in mind. It gives you the ability to create an elegant, custom checkout experience on any platform. Marketplace is different from other checkout platforms in that it manages the 1099K tax forms and can alleviate many of the compliance burdens associated with running a marketplace.
Also, there are no fees to payout your providers. You are charged 2.9% of the total plus $0.30 on the initial credit card transaction. You are able to pay providers right away or park funds in escrow until fulfillment is complete. Providers will receive funds in two days via ACH, or next day via Venmo.
New service already in use
The Marketplace platform is already being used by TaskRabbit. Braintree CEO, Bill Ready, states there are other companies using Marketplace as well, but TaskRabbit is the only one being disclosed as of now. This platform wants to target marketplace operators who would like to do a little outsourcing of their own, instead of being middlemen in transactions: getting funds from the buyer, holding them in escrow, validating the seller’s banking information, sending funds on to the seller when the transactions, and so on.
To get started, the sign-up process is the same for a Marketplace operator as it is for Braintree’s instant applications. Marketplaces are approved and running in around an hour, while sellers within the Marketplace are instantly approved. This platform comes at an ideal time, since Stripe’s just moved toward this very thing in June. Both companies launched an API which allows for ACH transfers at the flat rate of $0.25 per payout in addition to the standard pricing.
Braintree wanted to address many of the collaborative companies’ biggest problems and worked with its customer base to develop the new Marketplace service. Ready states, “collecting checking account information is now just a mobile number, escrow in handled by Braintree and funds are delivered faster than PayPal and others that can take three to seven days.” The bottom line: Braintree’s Marketplace offers faster payments, multiple platform support, tax report handling, and easy, fast service. It is definitely worth a look.