The rapid growth of e-commerce has encouraged many merchants to establish virtual storefronts and online marketplaces. As the number online sellers grows, these merchants require digital tools to collaborate and simplify payment systems on online marketplaces. To meet this need, Payza developed a split payment feature for all of our merchants. Here we take a closer look at the feature to explain how Payza merchants can benefit by incorporating the split payment feature into their online checkout process.
What are split payments and why would I use them?
Payza’s Split Payment feature enables an online store or marketplace to receive a single payment from a customer for multiple goods and then “split”, or redistribute, that payment to the multiple merchants selling their products through that marketplace. This feature simplifies payment systems for online marketplaces because it automatically distributes the payments to the individual merchants who sell goods on this marketplace.
The ability to split payments means you can tailor your Advanced Integration Tokenized Payment Button so that payments will be distributed instantly and automatically to multiple merchants selling goods on your online store.
Consider the following example
You sell items from multiple businesses via your online marketplace; for instance, an online marketplace selling goods from a diversity of manufacturers and re-sellers. A customer can add several items to their virtual shopping cart and pay for all their items at once using the Payza payment platform.
The split payment feature immediately splits this payment to credit the original sellers of the product purchased, and to credit you, the owner of the online marketplace, with a commission for the sale.
How to set up Split Payments on your online store
In order to have the split payment feature, your online store must first have Payza’s secure tokenized payment feature for Advanced Integration Payment Buttons set up on your websites; we provide an explanation of this feature in our previous blog here. You can then setup the split payment feature by adding basic code to your website; we explain the process and provide the necessary code here.
With a small investment in time and effort, we are confident that your online store will benefit significantly from our split payment feature.