What is Payment Orchestration?

Unifying all these components under a single control layer enables end-to-end management of payments processing instead of dealing with multiple, individual systems. Companies can monitor, optimise and automate key elements of their payment operations such as acceptance rates, chargeback disputes and reconciliation, more efficiently, helping to reduce operational costs.

Many Payment Orchestration layers and platforms also have robust integration features such as APIs that make them easily integrable with existing software and architectures, including cloud-based platforms and solutions. Implementing Payment Orchestration makes it simpler for merchants to build and operate the sophisticated payment ecosystem needed for today's online world.

5 Benefits to Payment Orchestration Today

1. A Better Customer Journey that Serves a Global Audience
   
   The top benefit to Payment Orchestration is its ability to improve the customer journey at every touchpoint. Simplifying the payment process with features like embedded checkout, integrated biometric validation, and less intrusive fraud rules removes many of the obstacles consumers face before completing their transactions.
   
   Additionally, the ability to offer consumers a wider range and choice of payment methods helps you meet the increased demands of the modern customer and maximise conversions. Digital Payment Orchestration makes it easier for you to adapt to new payment solutions as they're released or integrate existing ones as you expand into new markets.
   
   
2. Increased Fraud Protections
   
   One reason merchants may hesitate to add new payment methods is the increased risk of financial fraud. And there's a good reason for that. So far this year, global fraud losses grew by 18% to $2 billion, with 86% of global consumers becoming victims of payment fraud and identity theft. Merchants cannot afford to rely on a patchwork of legacy systems that can't detect fraudulent transactions no matter where they occur during the process. Without Payment Orchestration, transaction data is spread over multiple payment gateways and providers, making it difficult to analyze from an insight perspective, much less to detect fraud.
   
   With Payment Orchestration, however, data is routed automatically and dynamically based on predefined routing rules. These rules give you greater control over how the transaction routing is done and makes it easier to spot inconsistencies and risky transactions because you've got real-time visibility into the data in one spot.
   
   For example, you could automatically route transactions to the channels that provide the best conditions for both you and your customers. That could mean offering low-risk payment methods to the highest-risk customers or choosing the lowest transaction cost channel for the highest volume customer. Your Payment Orchestration platform gives you access to the data in real-time, so you can spot the risky transactions and then adjust your response accordingly before placing your business at risk.
   
   
3. More Resilient Payment Ecosystem
   
   The way most merchants combine separate payment channels and systems leave them open to single points of failure. Implementing Payment Orchestration improves the payment ecosystem's resilience by layering redundant systems that can take over processes if there's a failure. By connecting multiple PSPs or acquirers, there's a more robust failover process for transactions.
   
   Merchants will enjoy a higher transaction success rate, and a lower per-payment cost as the backend automatically reroutes to a second or third alternative processor to complete the transaction. Customers will be more satisfied with the payment experience as they can complete the transaction with their preferred payment method. No more mysterious payment failures that were out of their control.
   
   
4. Lower Total Payment Costs and Higher ROI
   
   The high cost of ownership of separate payment system solutions makes it difficult to develop new features or integrate new payment options. The maintenance, IT, resource, development, and licensing costs can add up quickly when you're dealing with multiple systems. A Payment Orchestration solution or platform leverages modern infrastructure and architecture to reduce those costs by upwards of 20% while consolidating many individual expenses.
   
   A Payment Orchestration platform is designed to work with existing cloud infrastructure such as AWS, Google, and other cloud software, reducing storage and bandwidth costs. It aggregates data and can easily compile data reports for multiple PSPs, making it possible to share the data with other merchants, fraud detection services, or financial authorities to identify and reduce overall financial risk. Plus, a Payment Orchestration platform uses automated services and processes that optimise back-office functions and uncovers transactional efficiencies that make it less expensive than conventional payment processing.
   
   
5. Access to a Wider Selection of Payment Solutions
   
   While some businesses choose the best payment solution for their needs, others are restricted by their current vendor agreements. This can lead to choosing an option that doesn't quite fit your business or your consumer's needs, which leads to frustration for everyone involved.
   
   On the other hand, a Payment Orchestration solution is a scalable, flexible solution that works with whatever you or your consumers need. It provides easy access to the ever-growing payment processing ecosystem, so you can pick and choose the PSPs and acquirers you need to offer the best payment options to your consumers. You're not dependent on a singular partner or vendor but instead can choose the ones that work best for your business.
   
   You'll have access to fallback providers that'll increase your resiliency and give you the option to switch providers in case of payment outages, feature updates, or policy changes that don't suit you. Finally, you'll be in a more favourable position when it comes time to negotiate pricing and charges with your vendors and other integrated partners.
   
   Unlike other initiatives that provide a temporary boost in profitability or revenue generation, Payment Orchestration allows businesses to prepare for and adapt to the ever-evolving payments landscape. Payment orchestration is one way to future-proof your business, enabling a scalable, resilient, and cost-effective solution to end-to-end payment processing.