Payment orchestration is a hot topic in e-commerce and is innovating the world of digital payments. This software layer simplifies frontend and backend integration and involves working with multiple payment providers to optimize customer conversion, enhance cost savings and improve fraud prevention. According to PYMNTS’ Payment Orchestration for Global Commerce, the global market for payment orchestration platforms is expected to grow 20% annually between 2021 and 2026.
But how does it work exactly? In this article, we’ll take a closer look at payments orchestration, how it works, and the benefits of using a payments orchestration platform for your business.
What is Payment Orchestration?
Payment Orchestration is the process of integrating and handling different payment service providers, acquirers, and banks, all on a single platform. Payment Orchestration software executes the complete payment process from start to finish. In addition, it handles payment processes such as reconciliation, billing and settlement, payouts and reporting.
The Payment Orchestration layer acts as a facade and serves as a front-facing interface masking more complex underlying workflows. Online merchants use payments orchestration platforms to avoid integrating with multiple payment platforms. Instead, integrating with a payments orchestration platform lets you connect with and manage all your payment service providers from a single dashboard. This way you’ll have fewer integrations and 3rd party service providers to deal with.
How Payment Orchestration Can Help Your Business
No matter your company size, transaction volume, or product offering – payment orchestration is necessary for any payments team as a core strategy. One benefit of Payment Orchestration for your business is the ease of integration. You only need one unified API to enjoy the benefits of working with many payment service providers.
Another key benefit of payment orchestration is the ability to recover lost sales. Most businesses invest a great deal of time and money to acquire consumers attention and ensuring a successful transaction is key to keeping the customer coming back. If a consumer’s card transaction is declined, then that eliminates the entire future lifetime value of that consumer. Plus, payment orchestration allows consumers to pay in their preferred currency. This allows you to manage multiple currencies via many platforms in a single addition to your stack.
As your business grows, you want a solution that can grow with your business. With a payment orchestration platform, you can save money even when you add more payment service providers to your process. You’ll incur fewer setup fees for multiple integrations, avoid additional fees that stand-alone payment services providers charge, and because some payments orchestration layers send transactions to the lowest cost processors, it’s usually the least expensive option if you want to benefit from a robust payment facilitation platform.
Payment orchestration has become more necessary as payment transactions become more complex. Adding a payment orchestration layer to manage your payments workflow can optimize your business, reduce costs, and boost productivity.
How you can manage your payment workflow with a payment orchestration platform
One of the most important functions of the payment orchestration layer is the workflow management of transactions. As companies manage payments flowing through their service, they often turn to automations as a means of streamlining the process. When automation tools are selected and IT support is needed, the results can be complex and extremely hard to manage. With payment orchestration, you can connect different systems to ensure a cohesive flow of payments through a workflow from beginning to end.
Payment orchestration workflow ensures the steps of a payment system are occurring in the correct sequence and at the right time to successfully deliver a service. You should look for platforms that offer a single point of control for scalable, API-driven applications and payment workflow orchestration. This can help your company reduce complexity by automating the payment process end to end.
User interface (UI) workflow is also important to consider when choosing the right payments system. One of the best ways to retain the engaged users is by improving the experience they are having with the website. That is why when done right, responsive UI helps companies acquire users, encourage their activity, and increase retention rates.
Ready to start managing your payments workflow effortlessly? Amaryllis Payment Orchestration Platform can help scale your business and increase your business valuation by monetizing the payments flowing through your service.