Why Marketplaces Are Becoming Their Own Payment Processors

Episode 18 of The Platform Economy with Fexingo dives into the strategic shift where marketplaces like Uber, Airbnb, and Shopify are building their own payment rails instead of relying on Stripe or PayPal. Hosts Lucas and Luna break down the economics: saving 50-100 basis points per transaction, controlling the customer experience, and unlocking data that feeds better matching algorithms. Using Uber's 2025 move to bring payments fully in-house as a case study, they explore the trade-offs—regulatory headaches, fraud liability, and the massive upfront engineering cost. Lucas argues this is inevitable for any marketplace processing over $1 billion annually, while Luna questions whether smaller players can afford to follow. They also touch on how embedded finance is blurring the line between marketplace and bank. A must-listen for anyone building or investing in platform businesses. #Uber #Stripe #PayPal #Shopify #Airbnb #EmbeddedFinance #PaymentProcessing #Marketplace #PlatformEconomy #Fintech #TransactionCosts #NetworkEffects #DataMoat #Business #Technology #FexingoBusiness #BusinessPodcast #ThePlatformEconomy Keep every episode free: buymeacoffee.com/fexingo