Would PayPal work as a solution for a peer to peer marketplace where the marketplace (the website ) takes a percentage of each payment. The company being the middleman here taking a percentage when user 1 pays user 2. I know that braintree would work here but as we are based in Germany it is not an option. So I'm wondering if PayPayl could facilitate these payments after reducing them by the percentage the company takes. Thanks for the help!
You're not going to be able to do a real-time split, but you could setup a billing agreement with the vendors selling on your site so that you can pull your commission from them when necessary.
For example, when a new vendor signs up to sell on your site you can send them through the Express Checkout flow to create a billing agreement for them, and keep the billing agreement ID you get for them on file.
You can use Express Checkout to handle payments for all the orders on the site, and have the payment sent directly to the vendor PayPal account. When orders take place you could keep a running balance of the amount they owe you in commission.
With a billing agreement on file you could then use the DoReferenceTransaction API to process the commissions due any time you need to. Of course, you'll want to make sure this is clear with your vendors. You could trigger commission payments daily, weekly, monthly, when a certain balance is reached, or whatever works best for you.