Marketplaces shifting smoothly into PSD2
Since 13 January 2018, the implementation of the European Payment Services Directive (PSD2) overhauled payment regulation. The Directive is mainly known for the regulatory changes it has brought about for banks and FinTechs. Marketplaces are directly affected by these developments because they are most often required to entrust the management of payments on their platform to payment service providers.
Why PSD2 is necessary
What are the options available to marketplaces to comply
Marketplaces are platforms that connect buyers and sellers:
platforms that connect professionals with each other (B2B marketplaces like Metro), those that connect professionals with consumers (BtoC product marketplaces like Amazon or services like Uber), and those that connect consumers directly (CtoC marketplaces like Vinted or Drivy). Platform operators, as intermediaries, can collect the funds paid by customers and return them to the merchants for whom they are intended.
However, collecting sums due to merchants and then transferring them is considered to be provision of ‘payment services, which is governed by PSD2. This is why platforms as a whole are concerned by PSD2.