Marketplace Payment Split Features in Shopify: What’s Possible in 2025

If you plan to create a marketplace on Shopify, handling Shopify payment split is one of the most critical steps. Every order on your marketplace involves more than one person. Usually, it is you (the admin) and your vendors. If you work with multiple sellers, you must split payments accurately and promptly. Doing this by hand is not sustainable as your business grows. You need automatic payment systems that are fast and accurate.

Shopify has improved this process in the last few years. Shopify stores experienced a 9% year-over-year increase in Q2 2025. 

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Shopify Plus offers you even more opportunities to customize complex payment options. You can rely on third-party apps, integrate with Stripe, or develop your custom solution. The choices are better now than before.

Reports from Statista show that marketplaces will reach $5 trillion in sales by 2025. That growth depends on smooth payment systems between buyers, sellers, and platform owners.

Let us explain how Shopify manages payment splits today and outline the available options.

What Is Payment Split in a Shopify Marketplace?

A payment split in Shopify marketplace means dividing the money from each order between the admin and the sellers. When a customer makes a purchase, the money needs to be distributed according to your platform’s rules. Usually, this involves paying a commission to the admin while the vendor receives the remaining share.

There are two ways to handle this:

• Direct payouts: The seller receives payment automatically immediately after a sale.
• Indirect payouts: The admin collects all the money first. Then, the admin manually or through software sends the vendor’s share later.

Some new marketplace owners prefer to make manual payouts initially. However, if your platform grows, you cannot continue doing this manually. Automated systems are necessary for larger marketplaces.

Available Payment Split Methods in Shopify (2025)

There have been numerous additions to Shopify marketplace payment features and integrations over the years. Now, there are several ways to handle multi-vendor payment in Shopify. Let’s go through the most useful options.

1. Using Shopify’s Native Checkout Features

Shopify Functions and Checkout Extensibility enable Shopify to modify the checkout process. Such characteristics become particularly helpful to users of Shopify Plus. You can now add custom code during the checkout process. This code determines how the money from each order is split.

Key features:

• Allows you to create commission rules during checkout
• Fully works inside the Shopify checkout process
• Can be used with outside payment services

However, this method requires the use of Shopify Plus. You also need skilled developers to write Shopify Scripts or Functions. This option is best for platforms that have access to a development team.

2. Stripe Connect Integration

Stripe Connect is one of the most popular tools for automatic payment splitting in marketplaces. It handles complex tasks such as compliance, identity verification, and tax reporting. This saves time and reduces mistakes.

Features:

• Automatically divides payments at the time of purchase
• Sends the admin’s share directly to the platform account
• Sends the vendor’s share to their Stripe account

You can set this up with apps like:

• Webkul Marketplace App
• Multi Vendor Marketplace (MVM)
• PayWhirl Subscription App

This is a flexible option and works well for marketplaces that need to handle many vendors.

3. PayPal Adaptive Payments (via external apps)

PayPal Adaptive Payments is an older system, but it still works in some cases if you use connector apps. This feature allows you to send parts of the same payment to different people at the same time.

However:

• Shopify no longer officially supports PayPal Adaptive Payments
• You will need to use third-party apps or middleware
• PayPal may limit your use depending on where you are or how much money you process

This solution is best for stores that already use PayPal and need to support sellers who prefer it.

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4. Manual Payment Handling

If you are running a small marketplace or testing a new idea, manual payments might work in the beginning. With this system, the admin collects all the payments. Then, you check your sales reports and send the vendor their share.

Pros:

• Works easily for less than 10 sellers
• No need for special apps or coding

Cons:

• It does not scale well
• Mistakes are more likely
• Vendors might have to wait for payouts

Manual systems are okay for short-term use. But if you want to grow your marketplace, you need to switch to automated payments as soon as possible.

Shopify Plus Marketplace Setup: Is It Needed for Split Payments?

You can split payments in Shopify without using Shopify Plus. However, when you need to speed up the process and make it flexible, it is easy to do with Shopify Plus. It provides you with additional Shopify Plus marketplace setup features that are not present in the regular Shopify plans.

Here is why Shopify Plus is useful for marketplace payments:

So, is Shopify Plus required for payment splits? Not always. But if you want to build a large and automated marketplace, Shopify Plus is the better option.

Shopify Marketplace Development Services: What to Ask Before You Start

All Shopify developers can understand how to configure a Shopify marketplace payments system. To implement additional functionality, such as payment splitting or custom payment gateways, you must have the right skills within your team. It is essential to ask the developers some questions before hiring them.

Do You Support Stripe Connect or Custom Gateways?

Some vendors will want Stripe. Others will want PayPal. Some may ask for direct bank transfers. Your development team must be knowledgeable about setting up these systems and handling any associated compliance requirements.

How Do You Automate Commission Payouts?

The main goal of a multi-vendor marketplace is to save time. If your developers cannot create automatic payouts based on commissions, you should not work with them.

Will Vendors Have Dashboards to Track Earnings?

A professional marketplace gives vendors a way to monitor their earnings. Sellers should be able to:

• See orders in real-time
• Check payment statuses
• Review past sales

To offer this, you usually need to build custom dashboards or use apps like Webkul.

Partnering with a team to develop a Shopify marketplace is a good point, but ensure that they can also provide more than just store installation. They also need to understand payment automation.

Need Help With Shopify Marketplace Payment Setup?

Running a marketplace is not just about selling products. You need a way to move money between you and your sellers. That’s where CartCoders makes things simple.

Here’s what CartCoders offers when you partner with them:

• Stripe Connect and PayPal split payment systems
• Real-time payouts for admins and vendors
• Custom dashboards for vendor earnings and orders
• Works fully with Shopify and Shopify Plus
• API-based setup for easy growth in the future

Whether you want to launch a small marketplace or scale a big one, CartCoders helps you set up the payment system the right way. 

Conclusion

Shopify now supports split payments, but setting them up properly requires careful planning. Stripe Connect, Shopify Functions, and Checkout Extensibility give you the tools. The challenge is putting them together the right way.

Shopify has the capabilities you require, whether you want to begin taking payments manually at the grassroots level or are developing a full-scale, automated, multi-vendor merchant platform. It is all about developing it properly.

That’s where CartCoders comes in. We offer Shopify marketplace development services that ensure accurate payment handling from the outset. Our team sets up payment split logic, real-time payouts, and custom dashboards for vendors.

When you work with CartCoders, you get a payment system that works smoothly. No delays. No confusion. Just evident, automated payment splits between you and your sellers.