Thanks to the widespread adoption of the internet and smartphones, we frequently use a variety of matchmaking solutions in our daily lives. Many of these services, such as flea market apps, job recruitment networks, skill-sharing programs, and dating apps, are supported by a system known as a matching platform.

If you can properly understand and operate such services, you can expect to see a stable income, so some businesses might consider setting one up. In this article, we’ll explain how matching platforms work, the different types, how to create one, and keys to success, providing straightforward and understandable Japanese case studies.

What’s in this article?

• What is a matching platform?
  
• Types of matching platforms
  
• The matching platform business model
  
• How to make a matching platform
  
• Keys to a matching platform’s success
  
• Some successful examples of matching platforms
  
• How Stripe Connect can help
  

What is a matching platform?

A matching platform is a system that connects people looking to offer goods or services with those who want to use them. Generally speaking, the term “platform” is used to broadly refer to a place where individuals can share information and conduct sales. Matching platforms are characterized by their ability to enhance the balance between supply and demand. Secondhand marketplace apps, such as Mercari, recruitment services like BizReach, and peer-to-peer rental offerings like Airbnb are expected to continue growing and remain central to the modern digital economy.

Types of matching platforms

Let’s take a closer look at the different types of matching platforms:

• Flea market apps: Individuals buying and selling goods amongst themselves (e.g., Mercari, Yahoo! Japan Auctions, eBay)
  
• Human resources: Linking companies and job seekers (e.g., BizReach, Wantedly, Rikunabi NEXT)
  
• Sharing services: Joint use of assets such as housing and transportation (e.g., Airbnb, Uber, Times CAR RENTAL)
  
• Food delivery: Connecting restaurants, customers, and couriers (e.g., Uber Eats, Demae-can)
  
• Marriage and romance: Providing a place to meet people and find a spouse (e.g., Pairs, Omiai)
  
• Skill sharing: Pairing people with knowledge and skills to those who need them (e.g., Coconala, Lancers)
  
• Finance and investment: Linking individuals who lend money with borrowers, and matching investors with companies (e.g., Crowd Bank, Funds)
  
• Business-to-business (B2B) matching: Supporting business transactions and partner searching between companies (e.g., J-GoodTech, Alibaba)
  

As you can see, there are numerous types of matching platforms. While the mechanisms and characteristics differ for each field, they all share the common feature of creating new value by efficiently aligning supply and demand.

The matching platform business model

In this section, we’ll examine the revenue streams of matching platforms in detail.

Fee income

In models that collect fees from sellers or buyers upon a deal’s closure, services tend to earn commission-based income.

Examples: Sales commission for Mercari, booking fee for Airbnb

Listing and store opening fees

Models that charge sellers when listing products or services on the platform or launching a store tend to generate revenue in the form of listing fees, store opening charges, and other similar costs.

Examples: Shop setup charge for Rakuten, posting fee on recruitment sites

Ad revenue

A model in which the platform offers advertising space, and businesses pay to increase their exposure, resulting in ad revenue.

Examples: Sponsored job listings on Indeed, paid ad slots on Rakuten

Subscription revenue

Revenue from a subscription-based business model where members and corporate clients pay monthly or annually to gain access to additional features and perks.

Examples: Paid membership plan for Pairs, premium plan for LinkedIn

Data utilization and related service revenue

This includes income from analytical services based on transaction data and customer information, as well as ancillary functions such as payment processing and logistics.

Examples: FBA (Fulfillment by Amazon), delivery system fee for Uber

How to make a matching platform

There are various ways to create a platform. We’ll cover the typical ones in this section.

• Building one in-house from scratch: This is suitable for large-scale development. The estimated cost ranges from approximately ¥5 million to ¥30 million.
  
• Package development: Building one by modifying an existing package. The estimated cost ranges from approximately ¥3 million to ¥5 million.
  
• No code / low code development: Teams are able to build and launch tools quickly without needing programming expertise. The estimated initial cost ranges from ¥1 million to ¥5 million. Separate monthly operating expenses will also arise.
  

Keys to a matching platform’s success

Simply launching a platform does not guarantee success. To gain the support of many users and achieve sustained growth, it is key to focus on several core elements. Let’s take a look at those points here:

The balance of supply and demand

It is integral to strike a balance between the businesses utilizing the framework and its members. During the startup phase, focus on acquiring one, and then balance things out as you grow.

Consider user-friendliness

Establish a platform that audiences can trust by implementing a review feature, identity verification, and a refund guarantee system. It is also necessary to create an environment that facilitates stress-free use, including a search function, accurate matching, and responsive app performance.

Diversification of payment methods

You must offer a variety of ways to pay, such as credit card, debit card, bank transfer, convenience store payment, e-money, PayPay, and LINE Pay. If you plan to expand overseas, it’s also a good idea to consider a payment agent that handles currency conversion and supports international cards.

Some successful examples of matching platforms

Matching platforms can take many different forms, but there are representative instances that clearly demonstrate their common mechanism of directly connecting people and services. Let’s examine some notable examples that have achieved widespread recognition and success, primarily in Japan:

Coconala

This service links individuals seeking specific knowledge and skills with those offering them. From creating illustrations to providing business consulting, it has broadly expanded its menu of offerings and popularized a culture where specialized expertise is bought and sold as professional services.

BizReach

A job-hunting network that brings together enterprises and job seekers ready and eager to work. By adopting a scouting approach where companies proactively approach aspiring employees rather than waiting for traditional job applications, efficient matching is possible. This enabled BizReach to develop a high-class talent market successfully.

Pairs

This dating platform connects individuals seeking romance, long-term relationships, or marriage. Pairs expanded its user base by utilizing Facebook authentication to create a sense of security and by using strong network effects. It is now widely regarded as one of Japan’s leading matchmaking apps.

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.