While the multitude of payment systems allows merchants to extend their target audience, it also creates multiple challenges for businesses:
- ‘Scattered’ management – the multitude of payment gateways creates a whole bunch of vendors, contracts, and interactions to deal with. It requires a whole team of managers, to handle the amount of workload.
- Failover logistics – when one of the gateways fails, the transaction should be re-routed to a different gateway. Thus, there is a need to implement the failover logistics to proceed with the payments.
- Data fragmentation – the data comes from different sources, in different formats and standards, requiring more time to consolidate everything.
- Multiple gateway integrations – different APIs require specific coding per each, becoming a load for developers.
- Fraudulent risks – businesses become dependent on providers and their compliance with security demands.
Online payment gateways allow businesses to enter the global market and compete for foreign customers, yet, the multitude of providers puts pressure on the management and developers team, creating a demand for a more unifying business payment solution – the payment orchestration platforms.
What Is a Payment Orchestration Platform?
A Payment Orchestration Platform (POP) is a single source of truth and an integrated payment system that collects and merges payment data and makes it available through one payment dashboard. In other words, the payment orchestration platform is like a control panel that allows for instant multiple online payment management. Its functions include:
- User and merchant account management.
- Payment fraud detection services.
- Initiation, validation, routing, and transaction processing
- Payment reconciliation, billing, settlement, payout, and reporting.
The platform is a helpful tool for any cross-border E-commerce or online service, as they can capitalize on a unified API of payment orchestration platform, thus, reducing the complexity of multiple integrations.
Payment orchestration platforms cover all possible forms of ‘financial interaction’ in commerce. Take Corefy, one of the leading orchestration platforms; they offer solutions for E-commerce, Forex, iGaming, Gambling, ISO/MSP, B2B SaaS, Crypto, PSP, Dating and adult, Marketplace, and Financial institutions.
Irrespective of the business type, the orchestration platform will keep you covered.
Benefits of Payment Orchestration Platforms
1. Scalability potential
With the help of payment orchestration, businesses can expand their network of performance, attracting new markets and audiences.
The orchestration platform allows merchants to manage region-specific regulatory compliance, acquire local payment methods, and simplify payment processing. New payment options can be launched within short timeframes, speeding up time to market.
2. Dynamic routing
The platform automatically selects the payment route depending on customers’ preferred payment options, transaction fees, gateway failovers, processing speed, etc.
Payment orchestration provides more control over the transactions and reduces the downtime and failover rates.
3. Improved shopping experience
Customers appreciate the smoothness of the shopping journey; however, if there are problems with the payment procedure, more than 50% of customers are likely to abandon the cart, bringing financial loss instead of profit.
The orchestration platforms offer the shoppers various payment gateway solutions, thus, making the shopping experience convenient till the checkout.
4. Lowered maintenance costs
When taken separately, conventional payment systems are affordable and rather cheap to maintain. Yet, in the long run, when adding every new system, the expenses get much higher, exceeding all the possible limits.
The orchestration system provides an up-to-date and secure infrastructure, smart rerouting, automated reporting, and unified management through a single platform.
5. Upgraded security and safety
Payment orchestrators improve transaction security and fraud monitoring according to local and international regulations. They include multi-factor authentication, credit card data tokenization, potential risk detection, risk management tools, etc.
Payment Orchestration Platform Implementation Guide
The implementation of an orchestration system is a complex approach as there are many aspects to consider:
1. Business requirements
As with any software, unified payment management software requires a clear vision and requirements from the business. It is important to outline the major aspects – payment methods to accept, regions and countries to serve, currencies to accept, extension needs, etc.
2. The platform
When choosing the payment management software make sure it meets the basic requirements – a wide selection of payment gateway solutions, integration with processors and acquirers, ability to integrate new payments gateways, split payments and refunds, ability to handle complex payment flows, etc.
3. Reliability of gateways and banks
When selecting the gateways and banks, consider their costs, security, and reliability. It is worth integrating with multiple gateways and banks to ensure a quick and secure payment process when there is an unexpected outage of one of the providers.
4. Security and Compliance
Payment security is critical for overall business performance. The platform should follow the latest security standards and upgrades and the local regulations for business functioning.
5. Across-channel support
Commercial presence usually includes various forms of B2C interaction – mobile apps, brick-and-mortar stores, E-stores, and social media sales. It is important to ensure that the platform provides across-channel support of payment management, to introduce consistent performance of all the points of commercial presence, thus, elevating shoppers’ experiences.
Summary
Multiple payment gateway usage is a staple in the commercial world; yet, the more gateways are used, the more difficult it is to manage them…unless you implement a payment orchestration platform.
Payment orchestrates platforms introduce a simplified payment management mode:
- Centralized platforms for multiple gateways
- Quick and secure payment procession
- Timely reports and automated data consolidation
- Smart transaction routing and re-routing
- Unlimited scalability opportunities
- Across-channel management
- Security compliance, and more.
Payment orchestration is a new form of payment management efficiency, don’t hesitate to introduce it to your business.
