3rd party Payment Gateways For Markets

Markets
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Good Day

Payment gateways are currently restricted by store base currency, while Markets allows for each market to sell in its own currency. 3rd party payment gateways should rather be restricted by eligible markets pr by market currency instead of by store base currency.

The vision of Markets is to provide a convenient, feasible and efficient solution to selling internationally and selling from a single store is how this vision can be reached. However, without customers in certain markets being able to use their preferred payment gateway(s), it is not possible to sell from a single store since majority of sales will be lost due to unfamiliar gateways and methods being offered to customers.

  1. When will markets support this feature? @coleatkinson mentioned that it is being thought about a few months ago but I see no more news on this. It is such an important feature, especially to markets who thrive on local BNPL payment methods.

  2. Is there a workaround to using custom or 3rd party payment gateways for each market or can a solution be developed, even if it’s just for Plus users for the time being? HPSDK was deprecated and I think that was a solution previously.

I see no regulatory issues as long as the payment gateway is supported in that market. For example, a US based organization should be able to receive USD payments through Shopify Payments from customers who they service in the US Market under a US entity with a US bank account and they should be able to receive ZAR payments through a local South African gateway like Paystack from customers who they service in the South African Market under a South African entity with a South African bank account.

Anyone else had this issue and found a solution other than creating multiple stores which is not feasible and not convenient?

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Release of the new Shopify Markets: Changes to the Markets and Catalogs APIs
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As a follow up, gateways should in fact not even be restricted by Market currency. Each gateway has its own supported currencies, so we should simply be allowed to offer the gateway to any market that we decide to, and then if the customer chooses that gateway they get to pay in currencies supported by that gateway. For example, in Botswana the currency is Pula. However, If I am using South African payment gateways such as Yoco I must be able to offer it to the Botswana Market too even though the final payment may be made in South African Rands which Botswana Customers are familiar with although that is not their currency. I must also be able to restrict this gateway from being shown to customers who are not familiar with paying in ZAR such as the US Market.

Local gateways have their own sign up procedures which may require merchants to submit local company registration documents and banking details, and that is perfectly fine. We will open our accounts with each gateway for eligible markets and offer that gateway to customers who are familiar with it it.

In a nutshell :

ZAR Gateways (3rd party gateways) such as Payfast and Yoco to be available to markets of our choice, regardless of the store base currency or the market currency. Merchants should be able to choose which payment gateways to offer in each Market (Under Payments, every gateway should be available and under Markets we should be able to assign various gateways to each Market as long as the gateway allows merchants to accept foreign payments)

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Hi Again

Thank you so much Carla

I’ve taken the step and gone Plus anyway.

I see that, under organisation, I am able to create expansion stores but as you mentioned this is additional unnecessary admin.

Currently, each expansion store needs to be under an entity and all transactions and sales recorded for that store therefore fall under that entity.

However, each store should rather have a primary entity like this where the store billing is charged, but also “sub” entities which can be assigned to certain Locations as well as certain Markets.

Example

Brand : Zalemart

Organization primary entity : Zaletrade LLC (USA Company)
Store billing is therefore charged to this entity

Stock Locations :

USA Warehouse, under the Zaletrade LLC entity

SA Warehouse under an SA entity called Zaletrade Pty Ltd

Markets :

USA main market, under Zaletrade LLC - offering shopify payments

SA market, under Zaletrade Pty Ltd - offering local South African payment gateways such as Paystack and PayJustNow

Other Markets where an entity is not registered and goods are not stocked - offering payment gateways that are accepted in those markets (such as shopify payments to the UK market and Paystack to the Lesotho market) and offering international shipping from either US or SA warehouses.

Sale examples :

Sold from USA warehouse to USA Market - Paid in USD through shopify payments, inventory subtracted from US warehouse

Sold from SA warehouse to SA Market - Paid in ZAR through paystack, inventory subtracted from SA warehouse

Sold from USA warehouse to SA Market - Paid in ZAR through Paystack and credited to the account of Zaletrade Pty Ltd but inventory subtracted from USA warehouse that belongs to Zaletrade LLC… But with Zaletrade Pty Ltd now owing Zaletrade LLC the proceeds of that sale which it accepted on its behalf. Can be vice versa for goods sold from SA warehouse to USA Market

When sold from USA or SA warehouse to a market where we have no legal entity, it must be processed through a payment gateway like Shopify Payments (which will be linked to the LLC) or Paystack (which will be linked to the Pty Ltd) that supports multi currency so that it can be assigned to that market and accept payments on behalf of the entity.

I hope that makes sense.

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Hi @coleatkinson @Alan_G Just following up to see if there is any progress on this. Besides entities at store level, allowing entities to be changed at market level should provide a solution to this problem.

am facing a fundamental issue with Markets.

I intended on using plus to sell internationally from a single store in order to avoid managing multiple stores and apps.

I have managed to overcome multiple challenges and gone through learning phases to achieve this goal, and I am almost there, but there is a very basic problem even after upgrading to Plus.

Currency is not an issue, catalogues are not a problem and domains are handled properly by markets.

However, payment gateways seem to be restricted by store base currency/billing address instead of by Market. This almost renders the idea of selling globally from one store irrelevant because offering local payment gateways to customers is of utmost importance.

For example, if a store is based in the US it cannot offer the payment gateways PayJustNow and Payflex to the South African market and those two payments gateways are extremely important to have in South Africa. Similarly, a store based in South Africa cannot offer Shopify payments or PayPal to the US Market.

I understand that a US based entity will be unable to sign up for PayJustNow and a South African entity cannot sign up for Shopify payments, but a solution would be to allow entities to be managed at market level and catalogue/product level instead of store level.

In this way, products stored in the US will belong to the US entity, sold to US market through PayPal or shopify payments, with payouts to a US bank account. Products stored in SA will belong to the SA entity, sold to SA market through PayJustNow or Payflex or other SA gateways, with payouts to an SA bank account.

If SA customers want to buy products belonging to the US entity with international shipping, they must still do it through the local gateways and we will “sell” and “deliver” the item to our SA entity and then send it to the customer as an SA sale. Vice versa if US customers want products stored SA and owned by the SA entity.

Yes, if a customer from another country where we don’t have an entity places an order, I guess it will have to be paid for as an international sale through the payment gateways offered by the market where the product is stored and owned similar to how it currently happens (unless it is legally possible to sign up for local payment gateways in those countries while the funds are paid to a foreign entity).

At store level, we can still choose a main entity and base currency which will pay for subscriptions and store level fees.

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Hi @coleatkinson @Alan_G @Liam-Shopify Just checking if any progress on this?