intermediary

An intermediary is a person or organization that acts as a link between two or more parties to facilitate a transaction, negotiation, or exchange of information. The term derives from the Latin intermediarius, meaning “between” or “in the middle.” Intermediaries exist in many domains, serving to connect buyers and sellers, lenders and borrowers, or disputing parties in a dispute resolution setting.

In commerce and finance, intermediaries include brokers, agents, distributors, wholesalers, and insurance brokers who connect parties and help transfer risk. In law and conflict resolution, mediators and arbitrators operate as intermediaries to facilitate agreement or a binding decision. In the digital economy, online marketplaces, payment processors, logistics providers, and content platforms function as intermediaries between users, buyers and sellers, or service providers, often creating environments where exchanges can occur with reduced friction.

Economically, intermediaries reduce information asymmetry and search costs, improve liquidity, and enable scale by pooling demand and coordinating supply. They add value through screening, standardization, logistics, credit provision, and after-sales service. While some markets move toward direct-to-consumer models, many economies continue to rely on intermediaries to manage contracts, trust, quality control, and compliance.

Legal and regulatory landscapes for intermediaries vary by jurisdiction. Intermediaries are often afforded limited liability for certain third-party actions or content (safe harbors) but may bear duties to moderate material, verify information, or disclose certain practices. Privacy, data handling, and competition considerations also influence intermediary obligations and market dynamics.