Kristian Gjerding's Insights on Payment Orchestration

“Payment orchestration might sound like a complex concept, but in essence, it's the magic that happens behind the scenes when you make an online purchase or book a flight”

Kristian Gjerding, in a candid conversation with PayPod, gives his valuable insights that demystify the world of payment orchestration and offer valuable insights into the intricate ecosystem of airline travel and online commerce. Since 2019, PayPod has been the premier source for insights in the payments and fintech sectors, featuring interviews with influential figures discussing key trends driving the industry's future.

Here are the key takeaways Kristian shares with the readers:

Payment Orchestration Defined

Payment orchestration serves as the central hub that manages the complicated aspects of financial transactions, particularly in the realm of airline travel and online commerce. It acts as a control center, ensuring smooth and secure payment processes from start to finish, all while offering flexibility and transparency for both businesses and consumers.

The Evolution of Payment Orchestration

Kristian Gjerding highlights how payment orchestration has evolved with time. It's a concept that has its roots in the early 2000s when digital sales channels were on the rise. The goal was to simplify and streamline the complex payment ecosystem, providing merchants with the ability to control, optimize, and report on transactions across platforms.

The Complexity of the Airline Payment Ecosystem

Airlines operate in an incredibly complex environment due to the high volume of transactions, strict regulations, and diverse range of stakeholders. Managing airline payments involves dealing with numerous currencies, regulations, and payment methods, all while ensuring precision and security. The adoption of payment orchestration has been particularly significant in the airline industry, with early adopters reaping the benefits of efficiency and cost reduction.

The Rise of Alternative Payment Methods

The introduction of alternative payment methods (APMs) such as buy now, pay later (BNPL) is changing the game. Airlines are recognizing the potential of APMs to offer more flexibility to travelers. BNPL, for instance, allows passengers to secure their tickets and save up for their trip simultaneously. This innovation caters to a more diverse range of passenger preferences and financial capabilities.

The Future of Payment Orchestration

Looking ahead, AI and analytics are set to revolutionize payment orchestration. Airlines are increasingly utilizing AI for analytical purposes, including pricing models and fraud detection. AI will also enhance customer service by enabling quicker and more specialized responses. However, it's crucial to remember that privacy concerns will shape the future of payment orchestration. As consumers become more protective of their data, businesses will need to strike a delicate balance between efficiency and respecting privacy.

Collaboration and Expansion

Payment orchestration providers like CellPoint Digital are open to collaboration and expansion within the travel industry. The focus remains on deepening capabilities within the financial supply chain, enhancing back-office automation, simplifying consumer engagement, and improving the overall customer experience.

In summary, payment orchestration is a multifaceted, evolving concept that plays a pivotal role in ensuring seamless financial transactions in the airline and online commerce sectors. Understanding its significance can help businesses and consumers alike navigate the complex world of payments with more confidence and ease. As technology continues to advance, payment orchestration will adapt and innovate to meet the evolving needs of the travel and e-commerce industries.