How payment orchestration changed the game for modern businesses

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These days, merchants have access to many payment processors and payment methods to suit all of their needs.

Nevertheless, having so many alternatives actually complicates their lives. A decade ago, customers who paid for goods online had two main payment options: either MasterCard or Visa. The same applied to the available payment providers: they could almost count them on their fingers.

Currently, the situation has changed dramatically. Merchants struggle to choose between multiple payment methods, protect against online fraud and chargebacks, optimize their payment processing and improve customer experience, all while simply seeking to get paid. The good news is that payment processing doesn’t have to be so complicated. Payment orchestration is primarily designed to make transaction processing simpler and more efficient.

Payment Orchestration 101

Merchant demands for simple and cost-effective payment processing have paved the way for the emergence of payment orchestration platforms. To paint the full picture, let’s first define what payment orchestration is, then move on to why merchants have more to gain by using the platform instead of multiple payment service providers (PSPs) distinct.

Payment Orchestration Platform is software that integrates multiple payment channels on a unified layer, packed with advanced features to optimize your transaction flow. One of the main objectives of the platform is to provide merchants with full control over payment operations in an easy-to-understand manner, relieving them of multiple operational tasks previously done manually. Simply put, a merchant who transitions to a payment orchestration platform moves from the passenger seat to the driver’s seat, receiving access to all available tools to create an enjoyable customer experience, increase conversion, and save on treatment costs.

What merchants gain from payment orchestration

As modern life accelerates, the value of the multi-acquirer approach increases dramatically. But, working with one or two payment providers, merchants are limited in their opportunities for growth. First of all, being tied to a PSP, they are affected by its development capabilities, payment processing speed, strength of fraud detection filters, chargeback prevention capabilities, and much more. The payment orchestration platform, however, puts everything in place. Let’s examine the advantages of the payment orchestration platform over other payment solutions, using Akurateco’s payment orchestration platform as an example:

  1. One integration – several payment connectors

With a payment orchestration platform, you have an almost limitless range of payment connector options. For example, Akurateco’s 200+ payment connectors include the most popular local and global acquiring banks and payment providers that work with traditional and alternative payment methods and various currencies. They are integrated into the platform and ready to use. Payment connectors that are not in the system can be requested and integrated by developers within two weeks.

  1. Reduced costs on transaction fees

Smart routing is one of the features that differentiates the payment orchestration platform from a typical payment service provider. The goal of payment routing technology is to select the most efficient payment provider with the lowest transaction fees for each transaction, thereby significantly reducing the cost of payment processing.

  1. More transactions approved

Powered by payment routing, the platform’s cascading technology reduces the number of failed transactions. In case of refusal, an automated system sends the same payment request during a payment session to another payment provider to obtain a successful result.

  1. Advanced analytics

For merchants, the orchestration platform involves the ability to drive a payout strategy that will help them achieve their desired results. The platform offers built-in analytics tools to consolidate cross-channel transaction flow into a unified dashboard and monitor sales data, customer geography, and transaction decline reasons.

  1. Protection against internal and external fraud

Akurateco’s in-house advanced anti-fraud tools are designed primarily for the needs of online payments, are created by payment experts, and are tested by many companies that use this white label software. Additionally, the company relies on third-party risk scoring technology.

  1. Improved customer experience

Customers typically leave the cart if their transaction fails or the available payment methods don’t match their payment preferences. The payment orchestration platform aims to solve these kinds of problems. As a result, a pleasant and error-free checkout experience encourages customers to come back and buy more goods from the merchant.

The Rise of Payment Orchestration in Modern Enterprises

It is extremely difficult to assess the full benefits of payment orchestration without actually using it. Indeed, merchants who process transactions through standard payment solutions are accustomed to performing many processes manually. For them, automating these processes may not even be on the cards. However, the arrival of payment orchestration has radically changed the game, allowing merchants to focus on strategic tasks. Imagine managing all your payments through a centralized platform with a clear understanding of internal transaction processing flows that you can use to build your own business development strategy, the center of which will be a customer-centric approach. When it comes to payments, it’s all about getting to know all of your customers by sight and understanding their needs and preferences in order to increase customer conversion.

Additionally, payment orchestration provides merchants with nearly limitless opportunities for growth. For example, suppose you are an online merchant in a European country. The amount of time, effort and manpower you would need to enter the US market and connect the necessary payment providers and popular payment methods yourself would be considerable. In turn, payment orchestration already offers many global and local connectors integrated into the platform as well as traditional and preferred alternative payment methods. As a result, global expansion takes much less time and effort.

After all, the days of online transactions via outdated feeds will soon be over. Outdated solutions will be replaced with up-to-date payment orchestration platforms. With a multi-acquirer approach and advanced technologies at the stack level, merchants will be able to increase conversion, reduce processing costs, and grow their business across borders.

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Elaine R. Knight