How Instamojo works
Instamojo works by creating payment requests.
For example: Superstore wants to accept payments, they create a payment request which looks like this:
They can share this link with their customers and receive payments online.
The Instamojo Marketplace flow is an extension of the above. You can create payment requests on behalf of a merchant in your marketplace/system, facilitate payments and payouts to them.
The Marketplace API can also be used to debit your commission from your merchants. While creating payment requests on behalf of merchants in your marketplace/system, you can receive a certain commission from each sale, while automatically transferring the rest of the amount to your merchant’s bank account.
Marketplace API use cases
The marketplace API is used by aggregators where sellers are charged a certain commission for each product sold on the platform. This split of commission is automatically done with the marketplace API.
Eg: Superstore registers on the marketplace Mojocart. Mojocart uses the Instamojo marketplace API to create an account for Superstore on Instamojo. Mojocart then proceeds to use Instamojo for all payments, compliance, payouts, security, risk and fraud-protection for Superstore.
The marketplace API allows the parent to set a commission for each transaction and hence, automates the process of reconciling payments with its branches.
Eg: SuperStore HQ has branches like SuperStore Mumbai, SuperStore Bangalore, etc.
Each branch will collect payments, however a small commission of each transaction should go to SuperStore HQ too.
The API can also be used by an agency to collect commissions from payments collected by a product/software that was customised and built for a client.
Eg: InvoiceWrite has an invoicing solution where they would like to integrate online payments and also collect a small percentage of each transaction processed.