Effect on Marketplaces

The NYSE, the Tsukiji Fish Market, Art Basel, the Khan el-Khalili Bazaar, the Bharat Diamond Bourse, the Consumer Electronics Show, eBay, Amazon – the world's full of marketplaces.

What do they do and why do they exist?

Primarily, they're "central spots" that enable buyers and sellers to find each other. They also provide communication, trust, and transaction services. They exist because they’re less expensive than the alternatives. If you want to sell 293 shares of IBM stock, you could try to locate people who are interested in buying them, or you could go to the NYSE.

Paybuyer’s technology can potentially affect some marketplaces, especially those that charge high fees, because it lets sellers hail/find buyers without a central transaction spot.

Payment-for-attention offers can be listed in an independent directory, like Paybuyer, that does not transact sales. For example, rather than use AirBnb (~11% transaction fee), a homeowner in Flagstaff could list his home under "vacation rental Flagstaff."

Electronic marketplaces can adapt by letting sellers pay buyers for viewing listings.