{"id":17571,"date":"2022-06-21T14:00:45","date_gmt":"2022-06-21T12:00:45","guid":{"rendered":"https:\/\/www.wannme.com\/?p=17571"},"modified":"2024-09-03T12:45:48","modified_gmt":"2024-09-03T10:45:48","slug":"what-is-split-payment-and-how-does-it-work","status":"publish","type":"post","link":"https:\/\/www.wannme.com\/en\/what-is-split-payment-and-how-does-it-work\/","title":{"rendered":"What is Split Payment and How Does it Work?"},"content":{"rendered":"

SPLIT PAYMENTS<\/strong>: Payments tailored to your various needs.<\/p>\n

Different business models have unique requirements when it comes to managing their payments.<\/p>\n

Have you ever wondered how Amazon or Aliexpress pays the millions of stores on their online sales platform? When a user buys a bicycle, a camera accessory, and a book from an e-commerce site, the amount for each product\/service must be credited to each supplier\u2019s account. This type of payment is known as Split Payments<\/strong>.<\/p>\n

While split payments are often associated with marketplaces or e-commerce platforms, their applications have expanded, opening up new possibilities. If your business needs to split payments after they have been collected, keep reading.<\/p>\n

What Are Split Payments?<\/h2>\n

Inherently, a marketplace involves three main players: the owner (e.g., Amazon), the merchants (e.g., Nintendo, P&G, or VANS), and the customers (e.g., Juan, Marco, or Clara).<\/p>\n

The customer places an order and makes the payment\u2014that part is well-defined. But what happens behind the scenes?<\/p>\n

The process of paying all the suppliers is a challenge for companies. They need an online payment platform, a system that helps them manage collections, recurring payments, or their marketplaces. This is where Wannme comes in\u2014a customizable, modular, and flexible online payment and collection platform.<\/p>\n

One of our key features is Split Payments<\/strong>. This solution manages the division of payments, assigning and transferring funds between the accounts of merchants or participants automatically, simply, and securely.<\/p>\n

So, how is the payment split in a marketplace?<\/p>\n

If the total cost of buying a bicycle, a camera accessory, and a book is \u20ac400, the buyer pays with a credit card and just waits for the order to arrive at their home. The marketplace receives the total payment but must distribute the funds among the suppliers. The Split Payments<\/strong> tool does this automatically and effortlessly: \u20ac250 for the bicycle, \u20ac100 for the accessory, \u20ac25 for the book, and the remaining \u20ac25 goes to the store\u2019s account.<\/p>\n

Simple, right?<\/p>\n

In cases where commissions are charged on a sale, Split Payments<\/strong> divide the already-made payment between the percentage that belongs to the seller and the rest that goes to the company. For example, from \u20ac100, the seller gets 5%, which is \u20ac5, and the remaining \u20ac95 is given to the company. This ensures control and transparency of the operation.<\/p>\n

Another new use is in franchises. For instance, if a sale is made at a franchised location, part of the profit goes to the parent company, and another part goes to the franchise that made the sale. Does your business have several franchisees? No problem\u2014the payment can be split among multiple franchises.<\/p>\n

A powerful application is in debt collection agencies, which handle collecting from debtors on behalf of creditor clients. Split Payments<\/strong> greatly facilitate retaining the agency\u2019s fee or commission, with the rest going to the creditor client.<\/p>\n

Additionally, split payments can also be used personally. A freelancer or self-employed person who charges for a service can distribute their earnings\u2014some to a personal account and some to a savings account.<\/p>\n

Split Payments: Perfect for the B2B Sector<\/h2>\n

Due to its features, split payments have become an essential tool in the B2B ecosystem.<\/p>\n