Split Payment Providers for UK Marketplaces 2026

Split payment providers divide customer transactions amongst sellers, platforms, and third parties automatically. UK marketplaces need providers offering FCA licensing, unlimited escrow, real-time splits to 50+ sellers, and volume-based pricing.

For a comprehensive explanation of how split payments work, read our complete guide to split payment processing.

This guide covers core split payment requirements for UK marketplaces, top providers, pricing models, implementation timelines, and selection criteria to help you choose the right solution.

What UK marketplaces need from split payment providers

Split payments divide a single customer transaction amongst sellers, platforms, and third parties automatically. A customer pays £100 on your marketplace. The system instantly splits £85 to the seller, £12 to your platform commission, and £3 to a delivery partner. This happens without manual intervention.

Standard payment gateways process transactions as single-party flows. Split payment providers handle multi-party distribution whilst maintaining PSD2 compliance. They manage seller KYC verification and provide transparent reporting to all parties.

‍

Core requirements for marketplace split payments

Real-time split processing:

Funds distribute instantly at transaction completion. Your sellers receive payment immediately after the customer completes checkout.

Flexible commission structures:

Configure percentage-based fees (15% platform commission), fixed amounts (£2 per transaction), or hybrid models. Apply these on a per-seller, per-category, or per-transaction basis. This flexibility supports diverse business models across different marketplace verticals.

Unlimited sellers per transaction:

Multi-vendor basket functionality requires splitting single transactions across 10, 50, or 100+ sellers simultaneously. A customer buys items from five different sellers in one checkout. The system distributes funds to all parties without transaction limits.

Escrow integration:

Hold funds until delivery confirmation, dispute resolution, or milestone completion before releasing payment to sellers. This protects buyers whilst ensuring sellers receive payment once contractual obligations are met.

UK regulatory compliance:

FCA licensing ensures adherence to PSD2 Strong Customer Authentication, KYC/AML requirements, and UK Payment Services Regulations. Without proper licensing, marketplaces risk regulatory penalties and payment disruptions.

‍

Top 5 split payment providers for UK marketplaces

Stripe Connect serves large enterprises with international expansion plans. Their global infrastructure supports 135+ currencies and payment methods across 47+ countries. However, flat-rate pricing means costs don't decrease as transaction volumes grow.

Ryft specialises in UK and European marketplace payments with FCA licensing. Volume-based pricing typically delivers  cost savings compared to flat-rate models. Real-time splits support with unlimited escrow functionality. Dedicated 24/7 UK-based human support team.

Adyen for Platforms targets enterprise organisations processing £50M+ annually. Their unified commerce approach connects online, in-store, and mobile payments through a single integration. Interchange++ pricing provides transparent breakdowns of card scheme fees, interchange costs, and processing charges.

Mangopay focuses on European marketplaces requiring e-wallet functionality. Sellers receive funds into digital wallets, enabling instant peer-to-peer transfers and reducing payout fees. Multi-vendor basket support handles complex split scenarios across unlimited sellers.

PayPal Braintree leverages PayPal's brand recognition to reduce checkout friction. PayPal One Touch enables customers to complete purchases without re-entering payment details. This familiarity increases conversion rates, particularly for consumer-facing marketplaces.

‍

Split payment pricing models explained

Understanding pricing structures helps UK marketplaces evaluate total cost of ownership beyond headline transaction fees.

Volume-based pricing:

Transaction fees decrease as monthly volumes increase.

Flat-rate pricing:

Fixed percentage per transaction regardless of volume.

Interchange++:

Transparent breakdown of interchange fees, card scheme fees, and processing fees.

Custom enterprise pricing:

Negotiated based on processing volume, transaction types, and platform requirements.

‍

Implementation: API integration essentials

Implementing split payments requires API integration, seller onboarding configuration, and split rule definition. The typical timeline spans 4-6 weeks from initial integration to full production cutover.

- Week 1-2: Integration and configuration Integrate the payment provider's API with your marketplace platform. Configure split rules defining how transactions distribute amongst sellers, platform, and third parties. Set up seller onboarding flows including KYC verification and bank account validation. Define escrow conditions specifying when funds release to sellers.

- Week 2-4: Testing and validation Test split accuracy across various transaction scenarios including single-seller, multi-seller, and multi-vendor baskets. Validate refund handling ensures proportional reversals across all parties. Verify edge cases such as partial refunds, cancelled orders, and disputed transactions. Confirm reporting accuracy provides transparent visibility to sellers and platform administrators.

- Week 4-6: Parallel running and cutover Run the new system alongside your existing payment processor without switching live traffic. Gradually increase traffic percentage from 10% to 50% to 100% over two weeks. Monitor for split errors, failed payments, and seller complaints. Complete full cutover once validation confirms 99.9%+ accuracy across all transaction types.

‍

How to choose the right split payment provider

Five factors determine the optimal split payment provider for UK marketplaces in 2026.

Geographic focus:

Choose UK/European specialists (Ryft, Mangopay) for domestic operations or global providers (Stripe Connect, Adyen) for international expansion. Regional expertise ensures regulatory compliance and optimal payment method support.

Pricing model alignment:

Match pricing structure to your growth trajectory. Volume-based pricing delivers savings as you scale. Flat-rate pricing provides predictability. Enterprise pricing suits large established platforms.

Seller volume capacity:

Verify the provider supports your current and projected seller count. Some providers limit connected accounts or charge per-seller fees that become prohibitive at scale.

Escrow requirements:

Evaluate escrow functionality if your marketplace requires holding funds until delivery confirmation or milestone completion. Not all providers offer unlimited escrow or flexible release conditions.

Support model:

Consider whether 24/7 human support or email-based support aligns with your operational requirements. Payment issues require immediate resolution to prevent revenue loss and seller dissatisfaction.

‍

Why choose Ryft?

Ryft is a leading Payment Services Provider (PSP) that specialises in marketplace payment solutions, ensuring full compliance and offering 24/7 support from humans. Using Ryft, businesses can accept payments anywhere, automate split payments, onboard sellers, set up delayed payments and recurring billing, earn commission from payment escrow, and much more.  

‍