[pt3530]

Keep in mind that unless you have the right licenses you can't be in the money flow between buyers and sellers. Meaning buyers money can't go to your bank account and then you pay the sellers.

For this you should use stripe connect, adyen marketplace or payaut.

[supermatt]

Why not? that restriction applies to financial services, not sale of goods. How do you think reselling works?

[pt3530]

sorry missed to reply.

Yes you can resell but reselling is different than a marketplace. A food delivery service like Deliveroo is not selling the food, so they can't collect money on behalf of the restaurant. In theory same with amazon 3rd party seller, in this case amazon has a licensed.

[mytailorisrich]

Which licenses would that be? I understand that this pulls extra legal and commercial obligations but it's not clear that this requires a license.

For instance, this does not seem to be an e-money activity. I know Stripe's pitch for Connect says that they have an e-money license (and money transmitter licenses in the US but let's focus on Europe), but to me that does not imply that an e-money license is required for a marketplace.

Edit: Ah, the licensing requirements seem to stem from PSD2.

The problem with Stripe Connect is that unless you have volumes to negotiate the standard fees are very high. And of course those regulations effectively mean that they own your business...

[rendaw]

Do you have details on this? What laws dictate this? I assume there's some criteria that qualifies a business as a marketplace where this becomes a restriction... All businesses receive money from buyers and pay suppliers on the other end but not all businesses need stripe connect.

[pt3530]

It's from PSD2.

Yes everyone has suppliers but in a marketplace the seller is not a supplier of the platform. They are a supplier of the buyer. The marketplace is only facilitating the transaction.

[raphaelj]

That's the correct answer.