Payment safety when building your own marketplace on social media

Commerce on social media topped US$500 million in 2023 and is set to top US$1 trillion by 2028. This runaway growth has happened as social media platforms continue to evolve into thriving online marketplaces, enabling widespread buying and selling opportunities.¹ But as the trend of selling on social media gains momentum, online payment safety becomes increasingly crucial.

This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.

This article explains the payments process within social media marketplaces and how to start selling with PayPal for secure online marketplace transactions.

The rise of social media marketplaces

Social media platforms are becoming increasingly popular venues for buying and selling goods. Social media marketplaces are now a mainstream way for people and businesses to sell goods and services to the same extent as physical shops and markets.

However, anyone venturing into this arena should rely on secure payment processing, both to guard themselves against theft and fraud and to reassure their customers. PayPal's security technology protects both sellers and buyers by ensuring safe and efficient transactions.

Understanding marketplace payments

Payments within social media marketplaces can take different forms, ranging from direct transactions between buyers and sellers to more secure options like escrow services.

Unlike traditional marketplaces, social media platforms may not always offer built-in payment systems, and that can introduce certain challenges. A clear understanding of how marketplace payment processing works is essential to overcoming these challenges and facilitating secure transactions.

Building trust with secure payments

Trust is a key component of successful transactions within social media marketplaces. Secure payment methods, such as those offered by PayPal, play a critical role in building this trust.

By prioritizing secure payments, customer confidence in online transactions is strengthened, ultimately contributing to a safer and more reliable marketplace environment.

How PayPal benefits social media marketplace sellers

For sellers on social media marketplaces, PayPal offers several key advantages.

First and foremost is security. Ease of use is another significant benefit — PayPal's platform is intuitive, making it simple to send and receive payments with minimal hassle.

Additionally, PayPal's strong reputation as a trusted payment processor can help build customer confidence, which is vital in online transactions.

To experience these benefits of secure payment methods, download the PayPal app.

Setting up PayPal for your social media marketplace

Setting up PayPal to accept payments on a social media marketplace is straightforward. The steps to create a PayPal account and start receiving payments include:

1. Signing up for an account. Visit the PayPal website or download the app. Click on Sign Up and choose between a personal or business account, depending on your selling needs.
2. Providing necessary information. Fill in the required details, including your name, email address, and a secure password. You will also need to link a bank account or card for withdrawals.
3. Verifying your account. PayPal will send a verification email. Click the link to confirm your email address and complete the setup process.
4. Customising payment preferences. Set up payment preferences, such as preferred currency, and review PayPal’s seller protection policies.
5. Integrating with social media. Share your PayPal link or embed payment buttons directly on your social media profiles to start accepting payments.

These steps ensure a secure and efficient way to manage transactions on social media marketplaces.