Define Participant Model
Participant modeling defines the entities that operate within your platform ecosystem and the relationships between them.
Your participant model influences onboarding requirements, funds flow design, compliance obligations, access controls, reporting, and operational processes. Before selecting capabilities or designing integrations, identify who participates in your platform and how they interact.
Why Participant Modeling Matters
Participant modeling is one of the most important platform design decisions.
Defining participant roles and relationships early helps determine:
- Who accepts payments
- Who receives funds
- Who requires onboarding and verification
- Who accesses reporting and operational tools
- Who is subject to compliance requirements
- Who is responsible for servicing and support
These decisions directly influence onboarding, payments, funds flow, payouts, reporting, and platform operations.
Common Ecosystem Patterns
The structure of your participant ecosystem varies based on your business model, participant relationships, and operational responsibilities.
Marketplace
Participants - Buyer, Seller, Platform
Typical Flow
- Buyer purchases goods or services from Seller
- Platform facilitates onboarding, payments, and payouts
- Platform may retain a commission or service fee
Franchise Network
Participants - Customer, Franchise Location, Franchise Operator
Typical Flow
- Customer transacts with a franchise location
- Franchise operator manages reporting, onboarding, and operational oversight
- Funds and reporting may be centralized or distributed based on business requirements
Service Marketplace
Participants - Customer, Service Provider, Platform
Typical Flow
- Customer purchases services from a provider
- Platform facilitates participant onboarding, payment collection, and payout distribution
- Platform may provide scheduling, servicing, and reporting capabilities
Gig Economy Platform
Participants - Customer, Worker, Platform
Typical Flow
- Customer requests a service
- Worker performs the service
- Platform manages onboarding, earnings management, and payouts
Participant Relationship Considerations
When defining your participant ecosystem, determine:
- Who owns the customer relationship?
- Who accepts payments?
- Who receives payouts?
- Who controls pricing?
- Who manages participant onboarding?
- Who provides participant support?
- Who is responsible for compliance obligations?
The answers to these questions will influence funds flow, onboarding, reporting, compliance, and operational processes.
Participant Design Checklist
Before proceeding, define:
- Who accepts payments?
- Who receives payouts?
- Who owns the customer relationship?
- Who controls pricing?
- Who requires onboarding and verification?
- Who requires KYC/KYB?
- Who needs access to reporting and operational tools?
- Who manages participant support?
- Who owns dispute resolution?
- Who is responsible for compliance remediation?
Next Step
Once participant roles and relationships have been defined, determine how participants will be onboarded, verified, and managed throughout their lifecycle by selecting the onboarding approach that best aligns with your platform requirements.