StreetLib Market has an internal credit system and a personal wallet for each user in the marketplace.
Users wanting to buy services on Market have to purchase predefined amounts of credits that will be added to their personal wallet.
One StreetLib Market credit has the same value as one US Dollar.
When a professional provides a service, StreetLib Market bills the internal credit of the buyer and, after a clearing period necessary to guarantee the resolution of possible disputes, it transfers the corresponding amount of credits to the professional’s personal wallet minus the fixed percentage commission (10%).
The professional can ask to withdraw the dollar amount that corresponds to their internal credit from his personal wallet to his Paypal account whenever they like, and the system will pay within 30 days starting from the end of the current month.
Vasiliy, an independent author from Russia, wants to buy the proofreading service offered by Jeff, a very experienced publishing professional from Portland:
- Jeff usually sell this specific service for $1000 USD, so he prices it at 1000 credits on StreetLib Market.
- Vasiliy deposits $1500 USD in Market directly from his Paypal account -- because he wants to buy the proofreading from Jeff but he also needs some beautiful illustrations for his book -- and after a few minutes his Market wallet will contain 1500 credits.
- StreetLib Market will automatically generate an invoice for the payment made by Vasiliy.
- Vasiliy buys the proofreading service from Jeff for 1000 credits, and the system puts the 1000 credits from Vasiliy’s wallet on hold. Jeff receives the purchase confirmation from the system -- but not the credits yet! - and starts working on the book.
- Jeff finishes his work and sends the resulting deliverable to Vasiliy, who is happy with the results and confirms that the job can be considered successfully done.
- As soon as Vasily provides his confirmation, the system moves the credits: 1000 credits are cleared from Vasiliy’s wallet, and 900 credits deposited into Jeff’s wallet. The system keeps 10% of the transaction, a total of 100 credits in this case.
- Jeff now has 900 credits in his wallet. He can sell other services and collect more credits, or he can use this credit to buy services from other professionals.
- At some point Jeff wants to withdraw credits, perhaps 500. He can do that anytime from his profile, and the system will move $500 USD to his PayPal account within 30 days from the end of the month.
- StreetLib Market will automatically generate an invoice on Jeff’s behalf for the money he received from the marketplace, regardless of how many internal transactions Jeff had inside the marketplace. This means Jeff doesn’t have to worry about any other accounting details, even when dealing with clients abroad and from countries with different fiscal systems.