Marketplace Definition.

A platform that connects buyers with third-party sellers and collects payments on the sellers’ behalf. Collecting funds for third parties is a payment service: it requires a license (as a payment institution), agent status, or a specialist PSP that safeguards the funds and handles payouts. PSD2 closed the old “commercial agent” exemption that platforms had been abusing.

See also

→ PayFac→ Safeguarding→ Payment institution (PI)

Where this term appears

GuideMerchant, acquirer, PSPGuidePayment regulationGuideFrench fintech: an overviewGuidePayments in the Netherlands and BelgiumGuidePayments in Hungary, Czechia, and SlovakiaGuideLuxembourg and Europe’s licensing hubsGuidePayments in BrazilGuidePayments in MexicoGuidePayments in IndiaGuidePayments in JapanGuidePayments in Japan and KoreaGuideMobile money in Africa

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