Business Case

Identify the right use case for your business

Before adopting the KOMOJU Platform Model, it’s crucial to determine which business case applies to your operations.

Platform Model supports two kinds of businesses - Platform Business and Marketplace Business. Here're the concise definitions of them:

  1. Platform Business: If your business connects buyers with sellers and empowers the sellers to directly accept online payments from customers, you likely fall under the Platform Use Case. (Examples: Shopify, WooCommerce...etc)
  2. Marketplace Business: If your business overseas the entire checkout journey and accepts online payments from customers directly on behalf of your sellers, you likely fall under the Marketplace Use Case. (Examples: Airbnb, Uber...etc)

Determining which use case applies to your business

To identify the correct use case for your business, start by determining who is the Merchant of Record (MoR)—the entity responsible for accepting payments directly from customers. The MoR is also accountable for complying with relevant commercial regulations, such as the 特定商取引法 (for Japanese entities). The key difference between Platform and Marketplace Businesses lies in the MoR:

  1. Platform Business: The Merchant of Record is your seller, who utilizes your service to accept payments from customers directly.
  2. Marketplace Business: The Merchant of Record is you , as your business accepts payments directly from customers through your sales channel

The figure below will help you identify which use case applies to your business:

Identify use case

If Platform Use Case applies to your business, refer to the details below:

If Marketplace Use Case applies to your business, refer to the details below: