What is payment orchestration and how does it help merchants to optimize online payment traffic?

Introduction

With Innumerable payment options to choose from and 100 providers & banks, providing customers their favourite way to pay is a headache for merchants. On top of this are Payment Operations, Costs, and Payment Success Rates, which if not optimised, lead to lost revenue. This is where Payments Orchestration comes into play.

Payments orchestration is about maximizing payment conversion in the most cost effective way. It involves working with multiple payment providers, acquirers and banks to optimize the customer experience, increase conversions, ensure regulatory compliance, enhance fraud prevention and enable global payments coverage. It’s a concept that’s rapidly gaining popularity, particularly in the eCommerce space.

Orchestration platforms (POPs), also known as payment orchestration layers (POLs) simplify front-and back-end integration. But do merchants need them and is there more to payment orchestration than these platforms are built to offer? We’ll answer those and other questions in this article.

What Is Payment Orchestration?

Payment Orchestration or Routing refers to integrating and managing the entire payment process, including payment authorization, transaction routing, and settlement. This involves connecting to different payment service providers (PSPs), acquirers, and banks on a single, unified software layer.

Payment Orchestration entails efficiently managing your payment stack within one platform rather than handling possibly dozens of integrations with different PSPs, enabling efficient scaling. Enterprises can expand into new markets, integrate multiple payment providers, and accommodate every Payment Method under the sun without worrying about compliance with relevant regulations. Payments orchestration is about maximizing payment conversion.

How does Payment Orchestration/Routing work?

Payment Processes are nothing short of intricate mazes with multiple legs involved. At any given time, there’s a possibility of a Payment getting lost. Payment Orchestrators essentially act as a guide, using automated transaction routing to detect the best routes to direct payments through. Consider it the shepherd of Payments. Payment Orchestration Platforms (POPs) shepherd payments to the best payment service providers that reduce failures and boost conversion.

The Benefits of Payment Orchestration

Payment Orchestration Platforms ensure that you get the most out of every transaction. Let’s look closely at how Payment Orchestration platforms drive growth for your business.

Increased revenue

Payment orchestration platforms simplify end-to-end payments and enhance customer experience leading to a boost in online sales and increased revenue. More Transactions cross the finish line, customers are delighted with their experience, and businesses enjoy higher conversions and profits, all leading to a growing Topline.

Seamless Payment Integrations

By using a payment orchestration layer, merchants can work with multiple local and global PSPs via a single integration, allowing for drastically faster integration times. For example, a business that needs to offer an alternative payment method can easily connect with a PSP offering these customer payment preferences.

Diversity in Payment Methods

A major advantage of payment orchestration platforms is that they give merchants access to a wide range of Payment Methods. As business needs change, they can easily add numerous payment methods. This is ideal for companies with customers who have diverse payment preferences, such as credit or debit cards, mobile wallets, or “Buy Now, Pay Later.”

Bespoke Customer Experiences

Customers tend to abandon their cart if the checkout process is too difficult or time-consuming. Payment orchestration platforms can help prevent cart abandonment by creating a streamlined checkout experience for customers - from Diverse payment options, Saved Cards, and Intelligent retries, to automatically inputting OTPs. Everything that makes a transaction frictionless for consumers. That’s a tall order for merchants without a Payments Orchestration Layer.

Lower Payment Processing Costs

Growing organizations will likely need to connect to multiple providers as they expand. Unfortunately, the cost of implementing and maintaining these connections can quickly add up, but a payment orchestration platform can decrease payment processing costs by routing transactions to processors with the lowest costs.

Understanding front-end and back-end orchestration

Front-end orchestration starts with the payment source and enables it to easily integrate into payment gateways. Examples of integration include multiple shopping websites, mobile shopping apps, call centers and kiosks.

The goal of front-end orchestration is to;

Minimize integration effort and complexity for the merchant.
Enable easy submission of payments authorization request during checkout.

A unified interface can ensure a simplified integration with those storefronts while gaining access to multiple payments, fraud management and additional services offered by payment gateways and other service providers.

Back-end integration offers the greatest value to online merchants. It focuses on encouraging customers throughout the shopping funnel, which is important because a lot of ecommerce customers abandon their cart. Enabling shoppers to use their preferred payment method — be it card; wallet; direct-to-account; cash-on delivery; buy now, pay later or others — is a critical factor in maximizing conversions.

Transfi provides a full support payment orchestration platform by providing payment assistance to globally acceptable payment options at checkout, with easy to integrate payment gateway, transparency and cost effectiveness, Transfi provides an ultimate solution to the entire payment pipeline.

Payment orchestration with Transfi

Multiple Payment Processors, Multiple Payment Gateways, Integration Time and Costs, a dedicated team to manage Payments, fragmented analytics, and broken and frustrating checkout experiences - Payments are hard to get right. But this should not come in the way of your Growth Story.

Enter Transfi, a fintech solution between you and your customers, powering everything from the time your customers land on a checkout page - from laying out payment options to allowing you to 'save a card for future use to automatically inputting OTPs. Everything that makes a transaction frictionless.

Conclusion

As you build, refine and grow your business, it is imperative to have a payments partner who understands the complexities and challenges that come in the journey and can help you navigate the same.

Transfi is the payments platform of choice of many freelancers, ecommerce platforms and businesses all over the world, who have partnered with us right from their early days. We provide a future-proof end-to-end infrastructure connecting directly to 250+ Payment Gateways, Networks like Visa, Mastercard,etc and your customers’ favorite payment methods. Transfi’s innovative products have transformed the payments experience, turning payments into a growth lever for your business.

Frequently asked questions (FAQs)

What is payment orchestration?

What is the best payment system for orchestration?

The best payment system for your online business will depend on your unique needs. We encourage you to do your research to find the system that fits your goals and requirements. Our platform, Transfi, offers businesses the most comprehensive, end-to-end financial operations system with global reach. We offer multi-currency accounts that make it quicker and more cost-efficient to help you accept, hold, and make payments internationally.

How does payment orchestration work?

How can payments orchestration benefit the business?

Payments orchestration helps manage multiple payment providers while putting in place a framework for optimization, enabling payment managers to shift their focus from operational to strategic tasks.

Key benefits include:

Streamlined connectivity into multiple payment partners
Optimized routing rules/decisioning to lower transaction costs
Reduced risk by implementing improved fraud prevention processes
Boosted acceptance and checkout conversions
Enhanced cost savings through reduced authorization and chargeback costs

What’s the best way to keep conversation rates healthy?

Conversion is all about getting the shopper to complete the payment. They need to click and pay, and then the payment has to be processed successfully. This is the job of payments orchestration. To increase conversion rates, merchants must offer the right payment methods, improve their user experience, offer one-click purchasing, work with multiple banks and acquirers and ensure dynamic routing is turned on.

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