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Thursday, May 23, 2024
HomeTechnology NewsThe role of fintech in the growth of second-hand trade

The role of fintech in the growth of second-hand trade

Gone are the days of flea markets and flea markets: we have entered the digital age of recommercea term that refers to the sale of second-hand through platforms such as Milanuncios or Wallapop which have spread to a large layer of consumers, which previously only a few did through classified ads.

Mangopaya provider of modular and flexible payment infrastructure for marketplaces and platforms, believes that this market will experience great growth and that fintech companies may have great opportunities in it.

The loss of purchasing power due to growing inflation means that more and more Spaniards sell items you don’t need before purchasing new ones, although this second-hand market was already booming and constantly growing even before inflationary tensions. According to data from the Bank of Spain, in 2022 alone the second-hand market generated 5.2 billion euros, 60% of Spaniards say they use this type of marketplaces, and 45% say they sell products through these services.

Increased security and open door to innovations

Of course, the expansion of this market will have its challenges, such as, for example, avoid mistrust between sellers and buyers. But as intermediaries in these transactions, fintech companies are in an unbeatable position not only to facilitate payments, but also to build that crucial trust. Fraud prevention and customer protection are the cornerstones: implementing know-your-customer (KYC) and anti-money laundering (AML) controls becomes essential. And monitor the items being sold to protect customers against online counterfeits.

In addition to this, innovations such as payment orchestration, which has been the preferred option for many e-commerce, It can be within the reach of second-hand marketplaces thanks to the fact that there are fintechs that can free them from traditional limitations and chart a path towards innovation.

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There is a boom in second-hand trade. As a payment infrastructure, we are in a privileged place to offer solutions to businesses,” has explained Nicolas Fournié, Country Manager in Spain of Mangopay. ““Both when it comes to improving security and providing avenues for innovation, at Mangopay we are prepared for the opportunities that are increasingly emerging in this sector.”

The role of fintech

It is not just that fintech facilitate transactions for usersbut that they can help and contribute to creating innovative and integrated products that not only improve the usability of the platforms, but also open the doors to marketplaces to diversify their sources of income.

And this can happen in multiple ways: facilitating instant payments, cash advances for regular sellers, partnerships with banks for online wallets that offer interest on balances… This is the playing field of fintech, which can be combined with commerce opportunities. secondhand. Exchanging advertising revenue for a percentage of transaction volume drives, for example, the growth of a marketplace. It would be an extra speed in the engine of these businesses.

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