Airline Payments: What is an Orchestration Layer and Should You Buy or Build?

In this article, we’ll attempt to provide an answer, by comparing the benefits of buying a Payment Orchestration solution from a third party versus the option of actually building one from scratch. We will discuss the challenges and advantages of each approach and consider factors that airlines should evaluate when deciding which option to choose, such as financial resources and scalability.

What is a Payment Orchestration Platform?

A Payment Orchestration platform is a pivotal component in managing transactions between customers, merchants, and payment providers, especially in the air travel sector. According to research from Condor, 148.3 million travel bookings are made online annually - so facilitating a quick and secure payment layer is becoming increasingly vital.

But what distinguishes a payment orchestration platform from traditional payment layers?

At its core, Payment Orchestration refers to the integration of various payment methods, channels, and providers into one unified platform. This integration offers businesses, like airlines, the opportunity to streamline payment operations, enhancing the customer experience.

Payment Orchestration Platforms (POPs) are typically licensed by third-party experts in the digital payments realm. In contrast, traditional payment layers are often developed in-house by brands with the necessary expertise.

With the distinction clear, a pressing question emerges: should an airline build its own payment orchestration platform or invest in an existing solution?

Building a payment orchestration platform from scratch may seem like a tempting option for airline merchants, but it comes with significant challenges and complexities.

One of the main obstacles is simply the level of technical expertise and resources that this onerous task requires. Building a payment orchestration platform, while juggling the day-to-day IT demands of a business, is not a mission for the faint-hearted. Pulling it off requires a team of highly-skilled developers, product managers, and architects who are well-versed in payment protocols, security standards, and integration techniques, all working through a lengthy development process fraught with potential delays and pitfalls.

Another factor to consider is the substantial capital investment required to build the platform effectively. Developing a payment orchestration platform can be a costly endeavor that demands financial resources for development costs, hardware and software infrastructure, and ongoing maintenance and support. Furthermore, building a payment orchestration platform takes time and may delay an airline's ability to enter the market, which could hinder its success.

However, despite these challenges, there are genuine advantages to building a payment orchestration platform. One significant benefit is the ability to customize and control the payment flows according to specific airline needs, without unnecessary options that aren’t relevant to their target consumers.

Additionally, airlines building their payment orchestration platform may have greater flexibility to adapt to market changes and regulatory landscapes as they arise, rather than being constrained by third-party solutions for the duration of licensing agreements.

Having covered the pros and cons of building a payment orchestration platform, let’s consider the benefits of buying one instead.

For airlines lacking sufficient build expertise or experience, buying an existing Payment Orchestration solution can be a more viable (not to mention less stressful and costly) option.

There are several benefits to buying a payment orchestration solution, including access to pre-built integrations with payment providers, pre-configured payment flows, and a user-friendly interface that streamlines the payment process. By leveraging an existing solution, airlines can accelerate their time to market and focus on other core areas of their business.

Moreover, buying a payment orchestration solution can prove more cost-effective than building one, particularly for smaller businesses or enterprises with limited resources. This is because the initial investment required is typically lower, and third parties often provide additional ongoing maintenance and support as part of their Payment Orchestration Platform package.

Lastly, Payment Orchestration solution providers stay abreast of the latest industry trends and regulatory changes, ensuring that airlines remain compliant and can adapt to market changes swiftly.

So, what exactly is a Payment Orchestration Platform when it comes to CellPoint Digital?

CellPoint Digital’s Payment Orchestration Platform (POP) is an all-in-one solution designed to simplify Payment Orchestration for airlines of all sizes. With its advanced features and capabilities, POPs offer various benefits, including streamlined payment flows, enhanced security, and increased efficiency.

POPs are particularly notable for their ability to future-proof connectivity, enabling airlines to adapt swiftly to changing payment technologies and regulations. By leveraging CellPoint Digital's expertise in payment orchestration, businesses can achieve faster time-to-market, cost reduction, and improved customer satisfaction.

If you’d like to get started then don’t hesitate to contact us via our website today.