This document discusses strategies for designing supplier pay-out processes for marketplaces. It begins by explaining how marketplace payment flows differ from traditional e-commerce, with buyers paying the marketplace operator who then pays multiple suppliers. This creates challenges around know your customer (KYC) onboarding of suppliers, international expansion, and respecting promised payment frequencies. The document then provides examples of how Mirakl Payout has helped marketplace operators by automating funds identification, streamlining KYC, offering secure cross-border supplier payouts in different currencies, and integrating with existing payment providers. It concludes with key considerations for building an effective marketplace supplier payout strategy.

1. How to design the
best supplier pay-out
strategy for your
Mirakl marketplace
Mirakl Payout

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Q&A
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Welcome to our masterclass!

3. Andy Barker Haanee Monem
EVP Financial Services Director of Client Success
PAYMENT EXPERT MARKETPLACE EXPERT

4. Takeaways
At the end of this Masterclass,
you’ll know
✓ How Marketplace payment differs from
traditional eCommerce, and why it’s
important
✓ How to build the best payment
workflow for your Mirakl marketplace
✓ Legal requirements & technical
challenges to be aware of

5. Marketplace supplier pay-out is
your most direct lever for
marketplace growth

6. The marketplace business model is a new norm
More platform growth
6x
Marketplace and dropship
platforms increased at
six-times the rate of
eCommerce – a wider gap than
the 2x growth in 2020 and 2021.
Source: Enterprise Marketplace Index by Mirakl, June 2023

7. 99
global
retailers
50k
sellers
$4B
gross merchandise
value (GMV)
120M
SKUs
Featured in the 2023 Enterprise
Marketplace Index by Mirakl
Source: Enterprise Marketplace Index by Mirakl, June 2023

8. But there’s a little problem
The payment industry wasn’t built for marketplaces

9. eCommerce payment flow
Buyer
Payment
Good & Services

10. Marketplace payment flow
Buyer
The North Face Patagonia Outdoor Research
Payment
Summit.com
Good & Services
1P Operator
3P Suppliers

11. Marketplace payment flow
Buyer
The North Face Patagonia Outdoor Research KYC
PAY-
IN
PAY-
OUT
MTL PSD2
Payment
Good & Services
Summit.com
1P Operator
3P Suppliers

12. We heard you say…

13. 26% drop
“We lose more than a quarter of our
suppliers during KYC onboarding”
Marketplace Operator, North America

14. KYC / KYB
acronym
KNOW YOUR CUSTOMER / BUSINESS
Know Your Customer are guidelines and regulations in
financial services that require professionals to verify the
identity, suitability, and risks involved with maintaining a
business relationship with a customer or business.

15. ~6 weeks
“We fail to respect our set supplier
pay-out frequency of one month, it can
take us up to 5, 6 or even 7 weeks”
Marketplace Operator, Italy

16. 5 month delay
“New local constraints delayed our launch
in a new geography by 5 months”
Marketplace Operator, North America

17. MTL
acronym
Money Transmitter License
A type of license that legally allows a business entity to
provide money transfer services. MTL registration is required
state-by-state as well as federally with FinCEN of the US
Treasury Department.

18. PSD2
acronym
REVISED PAYMENT SERVICES DIRECTIVE
The Revised Payment Services Directive is an EU Directive,
administered by the European Commission to regulate
payment services and payment service providers throughout
the European Union and European Economic Area.

19. 7 pay-ins
“We cannot afford to change all our
existing pay-in front-end integrations
for a specific pay-out provider.”
Marketplace Operator, Chile

20. Pay-out
noun
Marketplace supplier payment
In the context of marketplaces, a pay-out is a sum of money
that is owed to the supplier, that corresponds to the value of
goods sold via the marketplace minus fees or other charges.
Pay-in, on the other hand, is the amount of money paid by a
buyer to the marketplace for the whole order.

21. Your payment checklist
as a marketplace operator

22. YOU NEED TO YOU WANT TO
✓ Have all suppliers pass KYC
on-boarding
✓ Distribute the money from
buyers to different parties:
yourself and your suppliers
✓ Identify 1P and 3P funds
✓ Send money corresponding
to 3P orders to a segregated
bank account held by a
licensed provider
✓ Offer an easy & fast KYC
onboarding process
✓ Respect the payment
frequency you committed
on
✓ Let your suppliers choose
the pay-out currency
To build your marketplace supplier pay-out:

23. But you can’t afford to…

24. Increase administrative
burden on your team
Complicate supplier
on-boarding
Break front-end pay-in
integrations
Expand internationally with
no plan for pay-out

25. Summit.com
Remember…
Buyer
The North Face Patagonia Outdoor Research KYC
PAY-
IN
PAY-
OUT
MTL PSD2
Payment
Good & Services
1P Operator
3P Suppliers

26. Existing Pay-ins
Summit.com
Simplify supplier pay-out processes
Payment
Buyer
The North Face Patagonia Outdoor Research
Good & Services
Payout
1P Operator
3P Suppliers

27. MIRAKL PAYOUT CUSTOMER STORIES
Solving pay-out challenges,
one Mirakl marketplace at a time

28. The fashion brand continuing its
marketplace expansion to new geographies

29. CONTEXT
● B2C
● Fashion
● EU marketplace expanding to USA & UAE
● Global suppliers
CHALLENGE
● Expanding the marketplace to existing
websites selling owned product assortment
● Paying-out suppliers in their preferred
currency, irrespective of the shop currency
MIRAKL PAYOUT SOLUTION
● Easy cross-border KYC for each supplier
● Supplier can choose their pay-out currency
● One unique pay-out solution accessible from
the same Mirakl back-office
● Future proof solution: ready to scale when
adding new suppliers or geographies
The fashion brand expanding its marketplace to new geographies
Pay-ins
EUR USD SAR / AED
Mirakl Payout
Any currency

30. Store creation & KYC On-boarding made simple

31. The global home furnishings brand starting
a new marketplace on existing eCommerce
in multiple markets

32. CONTEXT
● B2C
● Home Furnishings
● Multi-geographies eCommerce switching to
marketplace with worldwide suppliers
CHALLENGE
● Launching a marketplace in multiple markets
● Each geography using specific pay-in providers
● Maintaining existing pay-ins while delivering a great
experience for all suppliers across geographies
MIRAKL PAYOUT SOLUTION
● One unique pay-out solution for all regions
● One KYC on-boarding per supplier, for all
geographies
● Pay-in agnostic: no need to change existing pay-in
front-end integrations, scalable with new pay-ins
● Secure supplier pay-out, leveraging segregated
accounts in line with MTL & PSD2 recommendations
The global home furnishings brand switching to a marketplace model
Mirakl
Payout

33. Adding a new pay-in PSP

34. The B2B marketplace with quick
launch & high growth ambitions

35. The B2B marketplace with fast launch & growth ambitions
CONTEXT
● B2B
● Pharmaceuticals
● US marketplace
● US suppliers
CHALLENGE
● Accelerating go-to-market timeframe 2 fold
compared to an in-house manual approach
● Adding a marketplace model to 1P ecommerce
with minimal impact on AR/AP team size
● Maintaining existing credit lines and payment
terms in place with buyers
MIRAKL PAYOUT SOLUTION
● Automation of 1P and 3P funds identification
● Automated supplier pay-out
● Supplier financing: increasing supplier loyalty
by paying them out on a set frequency, ahead of
buyer payment terms (60 days)
Pay-in
60 days
payment terms
Mirakl Payout
Monthly Supplier
payments
SUPPLIER 1
SUPPLIER 2
SUPPLIER 3

36. Takeaways

37. What you need to build your marketplace
supplier pay-out strategy
Automated 1P & 3P
Funds Identification
Easy & Fast KYC
On-Boarding
Secure Supplier
Pay-out
Pay-in PSP
Agnostic
International
Expansion Ready

38. Mirakl Payout
Q&A