Due to rapid technological change, the world today is more connected and digital than ever. Digital platforms facilitate online connection and collaboration, playing an important role in the digital economy. Do companies need a digital platform to succeed? What are the advantages and disadvantages of this approach? How can businesses create compliant digital platforms in France?

This article addresses the most common questions about digital platforms. You will learn important concepts related to this type of platform and how Stripe can help you create one.

What’s in this article?

• What is a digital platform?
  
• What are the differences between digital platforms and websites?
  
• What are the different types of digital platforms in France?
  
• How are business activities on digital platforms regulated?
  
• What are the advantages and disadvantages of digital platforms?
  
• Launching a digital platform
  
• How Stripe Connect can help
  

What is a digital platform?

A digital platform is a dynamic online interface designed to facilitate interaction, collaboration, and business among different actors in specific markets. The platform serves as an intermediary for making connections and exchanging information, content, services, and goods. Social media, marketplaces, and cloud services are some of the most commonly used digital platforms in France.

What are the differences between digital platforms and websites?

A digital platform offers access to content, goods, and services that it does not create. A digital platform functions as an intermediary, facilitating and hosting offers and interactions on the platform. Businesses active on digital platforms see multiple advantages, including the high visibility and access to new markets that a platform's network effects generate.

Conversely, traditional websites highlight information, services, goods, or content provided by a single entity. In general, websites are less interactive than digital platforms.

What are the different types of digital platforms in France?

There are many types of digital platforms in France operating in diverse industries, such as media, ecommerce, and cloud services. Each web platform has its own specialized features.

There are also specialized digital platforms, such as Uber and BlaBlaCar for transportation, Deliveroo in catering, Doctolib in health care, and Airbnb and Booking.com for lodging.

Note: Platforms usually earn money through a combination of commissions, subscriptions, sales of additional features, ads, and partnerships.

How are business activities on digital platforms regulated?

Business activities on digital platforms are strictly regulated by multiple French and European legislative texts. These include the Consumer Code, General Data Protection Regulation (GDPR), Digital Services Act (DSA), Digital Markets Act (DMA), and more recently, the Security and Regulation of the Digital Space (SREN) law.

If you are planning to launch a digital platform, you must do the following:

• Comply with the GDPR when collecting and processing personal data (e.g., include all legal information, maintain a written record of all processing, facilitate individual rights).
  
• Draft clear and transparent general terms of service for your platform.
  
• Create a listing contract that addresses the relationships between businesses and the platform (as applicable).
  
• Moderate content published on your platform.
  

What are the advantages and disadvantages of digital platforms?

Compared to traditional websites, digital platforms have a number of advantages for all parties concerned, including the following:

• Businesses can access new markets and increase visibility.
  
• The network effect the platform produces can facilitate interaction, connection, collaboration, and commerce among all parties.
  
• Data collected by the platform helps predict changes in demand and customer behavior. This can help the platform improve its algorithms and the relevance of its recommendations.
  
• Platforms are easily accessible using a mobile application or web browser and adapt to changes in internet users’ habits, which are increasingly turning toward m-commerce.
  
• Centralizing offers and processing payments directly on the digital platform helps simplify the sales process, which can increase productivity and customer satisfaction.
  

There are also disadvantages, which can include the following:

• Data security
  
• Technical maintenance
  
• Dependence on constantly changing algorithms
  

Launching a digital platform

To launch your digital platform, you should follow these steps:

• Conduct in-depth market research.
  
• Define your project, target market, type of platform you want to create, its profit model, etc.
  
• Select the technical tools and software needed to create an intuitive and efficient platform.
  
• Offer various payment methods, such as buy now, pay later and payment in installments.
  
• Ensure your platform is secure and in compliance with current laws.
  
• Create a strategic launch plan (e.g., content, community creation, unified commerce).
  
• Establish high-quality customer service.
  

How Stripe Connect can help

Stripe Connect orchestrates money movement across multiple parties for software platforms and marketplaces. It offers quick onboarding, embedded components, global payouts, and more.

Connect can help you:

• Launch in weeks: Use Stripe-hosted or embedded functionality to go live faster, and avoid the up-front costs and development time usually required for payment facilitation.
  
• Manage payments at scale: Use tooling and services from Stripe so you don’t have to dedicate extra resources to margin reporting, tax forms, risk, global payment methods, or onboarding compliance.
  
• Grow globally: Help your users reach more customers worldwide with local payment methods and the ability to easily calculate sales tax, VAT, and GST.
  
• Build new lines of revenue: Optimize payment revenue by collecting fees on each transaction. Monetize Stripe’s capabilities by enabling in-person payments, instant payouts, sales tax collection, financing, expense cards, and more on your platform.
  

Learn more about Stripe Connect, or get started today.