SPLIT PAYMENTS: Payments tailored to your various needs.
Different business models have unique requirements when it comes to managing their payments.
Have you ever wondered how Amazon or Aliexpress pays the millions of stores on their online sales platform? When a user buys a bicycle, a camera accessory, and a book from an e-commerce site, the amount for each product/service must be credited to each supplier’s account. This type of payment is known as Split Payments.
While split payments are often associated with marketplaces or e-commerce platforms, their applications have expanded, opening up new possibilities. If your business needs to split payments after they have been collected, keep reading.
What Are Split Payments?
Inherently, a marketplace involves three main players: the owner (e.g., Amazon), the merchants (e.g., Nintendo, P&G, or VANS), and the customers (e.g., Juan, Marco, or Clara).
The customer places an order and makes the payment—that part is well-defined. But what happens behind the scenes?
The process of paying all the suppliers is a challenge for companies. They need an online payment platform, a system that helps them manage collections, recurring payments, or their marketplaces. This is where Wannme comes in—a customizable, modular, and flexible online payment and collection platform.
One of our key features is Split Payments. This solution manages the division of payments, assigning and transferring funds between the accounts of merchants or participants automatically, simply, and securely.
So, how is the payment split in a marketplace?
If the total cost of buying a bicycle, a camera accessory, and a book is €400, the buyer pays with a credit card and just waits for the order to arrive at their home. The marketplace receives the total payment but must distribute the funds among the suppliers. The Split Payments tool does this automatically and effortlessly: €250 for the bicycle, €100 for the accessory, €25 for the book, and the remaining €25 goes to the store’s account.
Simple, right?
In cases where commissions are charged on a sale, Split Payments divide the already-made payment between the percentage that belongs to the seller and the rest that goes to the company. For example, from €100, the seller gets 5%, which is €5, and the remaining €95 is given to the company. This ensures control and transparency of the operation.
Another new use is in franchises. For instance, if a sale is made at a franchised location, part of the profit goes to the parent company, and another part goes to the franchise that made the sale. Does your business have several franchisees? No problem—the payment can be split among multiple franchises.
A powerful application is in debt collection agencies, which handle collecting from debtors on behalf of creditor clients. Split Payments greatly facilitate retaining the agency’s fee or commission, with the rest going to the creditor client.
Additionally, split payments can also be used personally. A freelancer or self-employed person who charges for a service can distribute their earnings—some to a personal account and some to a savings account.
Split Payments: Perfect for the B2B Sector
Due to its features, split payments have become an essential tool in the B2B ecosystem.
- The company receives the total payment. The division occurs after the payment.
- Multiple recipients. Split Payments automate the disbursement of funds based on the specifications previously agreed upon by the parties.
- Process acceleration.
- Less human and financial effort. A single API handles splitting and sending the amounts.
- Secure process. Protected by several security measures, Wannme employs technologies that keep your payments safe online.
- Transparency and clarity. The distribution of funds first passes through an escrow account, ensuring the funds are secure in a financial institution before executing the disbursement.
- Flexibility. The company has complete control over which payments are made and how (bank transfer, QR payment, Bizum, credit/debit card). With Wannme, choose the payment methods that suit you best without limits.
- Smart Payments. With Wannme, you can combine different payment methods and types, customizing each payment and sub-payment to the client’s preference, reaching a broader spectrum of situations and clients.
Split Payments: The Ultimate Solution for Dividing Payments
“The e-commerce sector in Spain is growing at an annual rate of 6%, while the rest of the world records an average decline of 3%, according to data from Salesforce for the first quarter of 2022.
These figures make the Spanish market one of the few globally—and the only one in Europe—on the rise.” – The Objective.
E-commerce continues to grow in popularity, leading to the creation of more online commerce platforms and increasing the need for tailored payment and collection solutions. Wannme simplifies collections with its unique API that integrates everything: 4 solutions with thousands of combinations.
Create a payment system tailored to your needs, your clients, and your market.
Stay tuned for our next blog, where we’ll discuss the evolution of Split Payments.
Would you like to know how Wannme can help your marketplace? Request a demo. It’s completely free and without obligation. Contact us.
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