Profile PictureFiona MacDougall

Transaction Flow Diagram - for Marketplace Businesses

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Transaction Flow Diagram - for Marketplace Businesses

Fiona MacDougall
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Template transaction flow diagram for a classic service-based marketplace business.

By Fiona Macdougall, ex-marketplace founder and UX designer for early-stage marketplaces

What a Transaction Flow diagram?

A transaction flow diagram documents how payments are made and received. It’s an important part of the design process and you will need to share and discuss this with your developers. They can provide input on what is possible and make recommendations on how to simplify the build (making it quicker and cheaper).

Why do I need it?

This template will help you to think through the mechanics of how transactional payments should work in your marketplace. 

It's a complex process and very difficult to get right, particularly if you're doing it for the first time. For example, you'll need to understand what triggers (e.g. fitness class is complete) create automated actions by your payment provider (e.g. payout to the fitness instructor).

I've done a lot of the hard work for you by replicating two classic transaction flows that you might find in a service-based marketplace like Airbnb - instant bookings (where a booking is automatically accepted by the supplier) and reviewed bookings (where the supplier needs to review and accept/decline each booking request). 

This document will also help you to communicate how transactions should work with your developers.

How should I use it?

All you need to do is sign up duplicate this template and tailor it to your own business.

Who is this for?

+ You're a marketplace founder, entrepreneur or side-hustlers

+ You have an awesome marketplace idea

+ You're in the early stages of designing or building a marketplace

+ You're using a no-code or low-code tool such as Sharetribe, Bubble or Webflow

Who am I?

I'm a UX designer with over 8 years of experience. For the last two years, I have specialised in designing marketplaces. I founded my own marketplace and I've helped six founders design theirs.

Learn more about me and my services at

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