By: Mariah Young,

From ease of integration to automated processes, this post outlines three examples of marketplaces which have previously integrated an ACH API for payouts.

As online marketplaces have boomed over recent years, various payments pain points have emerged:

  1. Many payments partners present unsustainable processes alongside the growth of the marketplace, heaping large percentage-based transaction fees onto a business and cutting into profit margins.
  2. Documentation, the API, and integration process of payment providers easily become out-dated or clunky, if not well-maintained.
  3. Payouts processes for online marketplaces can become cumbersome for the internal teams, like customer support, to manage.
  4. Transfer times to bank accounts when facilitating a transfer aren’t compatible to the speed at which the business operates.

With that in mind, a quality solution for marketplace payouts should seamlessly integrate with the existing payments process and technical infrastructure. Furthermore, onboarding needs to be easy and secure for the recipients of payouts.

The best marketplaces differentiate themselves by offering payout transfer times that are as speedy as possible. Finally, the payments solution should come with cost and functionality that are appropriate for your specific marketplace’s needs and your P&L.

To paint a clearer picture of how these “needs” impact a marketplace, consider these case studies…

1. GOAT Case Study

GOAT is online marketplace for high-end and luxury sneakers. In true marketplace fashion, sellers list their certified authentic sneakers on GOAT’s platform and GOAT handles the rest.

blog-goat-situation-marketplace-payouts

As the volume of product moving in and out of the marketplace grew, GOAT needed a payouts provider that could offer faster payouts at a sustainable price point and reduce the number of support tickets. Its team chose to integrate Dwolla’s ACH API for payouts and saw an immediate benefit.

With a simplified funds flow and better notifications to payout recipients, GOAT’s cashout-related support tickets decreased by 80% and time to resolution went down 50%.

2. GetMyBoat Case Study

GetMyBoat connects owners with those looking to rent boats of various sizes from around the world.

getmyboat-situation-graphic-dwolla-case-study

When GetMyBoat’s team was searching for a payouts partner, they compared 8+ different options. They chose Dwolla for a few reasons, but most notably was the modern, up-to-date API documentation.

As outlined above, any good platform needs a quality API. This marketplace integrated Dwolla’s scalable, RESTful API in less than 14 days to deliver numerous daily payouts to its large and growing base of boat owners. Event-driven notifications and simple administrative tools helped automate and manage its operations, saving valuable time and resources.

3. Popular Pays Case Study

The third case study to consider is Popular Pays—this platform isn’t your traditional marketplace, however, it does connect buyers and sellers. Brands use Popular Pays’ platform to partner with “creators” to produce original content that aligns with the brand’s narrative. In turn, those brands pay Popular Pays and Popular Pays pays out to those creators.

situation-diagram-popular-pays-marketplace

In the introduction, we mentioned that one of the key elements in a good payouts partner is the ability to make processes easier for your internal team. This Popular Pays case study paints a very clear picture of this.

Popular Pays used Dwolla’s White Label API to link creators’ bank accounts and designed its integration so its accountants could initiate payouts in just a few clicks. Reconciliation occurred more seamlessly and quickly, leading to a 50% decrease in accounts payable tasks.

As a cherry on top, payouts time to creators was reduced from 10 business days down to 1-2.

When you’re searching for a partner in payouts, the guess and check process could cost you. Learn from these examples—look for a partner that has a proven track record of exhibiting the hallmarks you need.

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Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.