What does a marketplace owner, marketplace operator, or marketplace partner do?

The terms marketplace owner, marketplace operator, and marketplace partner are virtually interchangeable.

A marketplace partner is a company that sells software or other technical services that enable merchants to process e-commerce transactions. A partner:

  • Often acts as the marketplace operator or owner
  • Earns revenue by selling their software and capabilities
  • Receives compensation from PayPal for enabling and influencing PayPal-branded payments
  • Provides e-commerce hosting services such as payment processing and shopping cart hosting
  • Facilitates the marketplace, drives consumer traffic to it, and recruits other merchants to sell on it
  • Chooses whether to manage the customer experience, control funds disbursement, manage disputes between customers and merchants, and assume the risk of losses.

The marketplace partner (or operator, if they're different from the partner) often charges the merchants a partner fee in exchange for supplying operation support services, such as a technology infrastructure, payment processing, fraud and risk management, and customer protection.

See also:
PayPal for Marketplaces