Payment Orchestrators serve to enhance the overall transaction process to drive merchant sales and improve profitability. In the world of payments, the priority is to be frictionless – the last thing that should be on a consumer's mind is the technical processing of their payment.
Therefore, as ecommerce transactions account for $8.1 trillion US dollars worldwide, smooth and effortless payment is crucial for improving customer experience, efficiency and revenue. Here are just a few of the benefits of payment orchestration, and why they matter:
Better customer experience
The goal of Payment Orchestration is to create a frictionless consumer journey at every juncture. With embedded checkout and broader availability of relevant payment methods, consumers encounter fewer hurdles to clear in order to complete their purchases. What’s more, recent reports revealed that lack of preferred payment methods contribute to 40% of customer abandonment. If the end-consumer experience can be improved to decrease the level of payment abandonment or failures, this will significantly enhance revenue per every transaction.
Optimised transaction flow
In the scenario where a customer is lost due to a failed payment, it can be because of processing failures on the side of either the acquirer or issuer. The intelligent routing function of Payment Orchestration allows pending transactions to be sent to the best-performing processor in order to avoid this outcome. In addition, if one payment processor is down, the transaction can automatically be routed to another processor without any interruption to the customer, which is especially important as customers expect a frictionless payment process.
Since Payment Orchestration functions by integrating all processes and aspects of the transaction flow under one API, the time required to set up new payment options and add-ons is reduced. Consequently, a merchant can take its product to the market quicker and reach more potential customers with a wider range of payment options – offering the right payment type at the right time.
Enhanced security and compliance
With traditional payment processors, cardholder data is shared between multiple Payment Gateways and providers, weakening protection against potential fraud. The automatic data routing provided by Payment Orchestration lets you control transaction routing, helping identify data inconsistencies in real time.
The architecture of Payment Orchestration also allows merchants to assess a number of providers while maintaining consistent fraud and compliance management across all providers, helping to make online transactions smooth and secure in a shorter amount of time. This is especially useful for executing smooth cross-border payments, as the integration lets merchants adjust payment systems, services and software (the payment stack) to accommodate international transactions. These would otherwise require dealing with region-specific compliance and regulations like PCI DSS, PSD2 and GDPR.
As merchants grow their business and need to enhance payment performance, developing new features or integrating further payment options may be required. In turn, this requires investment in maintenance, IT, resource, development, and licensing – all of which incur costs that add up. With full integration of Payment Orchestration total expenses can be reduced by up to 20% by consolidating costs under a single platform.
A Payment Orchestrator is built to integrate with existing cloud software, helping merchants to reduce the cost of storage and bandwidth. It enables them to aggregate data and share data with other merchants and fraud detection services to spot, and thereby reduce financial risk. This way, the payment stack incurs fewer fees for setting up integrations and add-on costs for providing services like automated transaction routing.
Finally, additional cost savings can be found in using multiple acquirers and routing payments to the lowest cost or local payment providers.
Centralised reporting and analytics
Besides integrating with existing systems for smoother transactions, Payment Orchestration platforms adapt to the payment preferences of each merchant. Payment Orchestrators gathers transaction information spread across multiple Payment Gateways and PSPs in a single view allowing merchants to make alternative strategies driving transparency and efficiency. These analytics and insights make it easier for merchants to better manage their payments ecosystem through more informed decision-making.