Payment orchestration is not new, but it's taking on an expanding role as companies and merchants try to keep up with customer demands and the ever-increasing number of payment options out there. Merchants are struggling to keep up as they add newer technologies, components, and elements to their existing legacy infrastructure, making them less efficient at processing payments.
These intricate and fragmented layers make it hard to plan for digital growth across the organization. Instead of focusing on product development, they've had to look at their backend systems and back-office processes to see how they can meet customer demands while still being efficient with their technology architecture.
The widespread adoption of payment orchestration across many industries is driving the digital transformation in the payments space. It's helping companies and merchants develop a more efficient payment ecosystem that can handle today's sales and deal with expansion in the future. From airlines and travel companies to retail and logistics firms, everyone's looking at payment orchestration to drive global expansion and grow into new market verticals.
Let's take a closer look at payment orchestration and the solutions or platforms that can profoundly impact your company and business.
What Is Payment Orchestration?
Payment orchestration refers to all the software, systems, and services that are involved in authorizing and processing payments. More specifically, payment orchestration optimises how these systems work together to ensure the most efficient route for a quick and secure transaction. It does this through a payment orchestration platform that sits between the external-facing technology and the backend software and processes your company uses to handle all transactions, settlement, reporting, and so on. For example, online education platforms use it to offer courses internationally, online streaming apps use it to manage digital payments and integrate new global payment options, and travel companies use it to offer and manage omni-channel, mobile-first payment options.
Whether it's deployed as a payment orchestration platform or layer, it bundles everything your company needs to initiate, validate, route, and process transactions into a single tech option.
Payment Orchestration Platform Architecture