Need to Scale Efficient Online Transactions? Payment Orchestration Platforms Are Your Answer

Innovative businesses are using payment orchestration for high-growth payment solutions.

Payment orchestration platforms are a new technology developed to tackle the growing complexity of payment processing, particularly for global businesses handling multiple payment gateways, methods, and currencies. These platforms are essential for improving operational efficiency and financial performance. They go beyond individual transaction optimisation to enhance the overall reach, adaptability, and performance of the payment processing stack.

What is Payment Orchestration

Payment orchestration involves managing and optimising a business’s payment processes, including processor integrations, contracts management, transaction routing, and retry logic. The goal is to streamline operations, maximise financial performance, and maintain payment flexibility. As businesses increasingly view payments as a strategic lever to enhance both revenue and profitability, the concept of payment orchestration has gained traction. For many enterprises, managing these processes in-house is resource-intensive, leading to a growing interest in third-party platforms to simplify the complexity

The Purpose of Payment Orchestration Platforms

Payment orchestration platforms were created to address the challenges of managing multiple payment processors. These cloud-based solutions optimise payments across various partners, including gateways, acquirers, and alternative payment methods. Serving as a centralised hub, they integrate and manage different payment service providers (PSPs), gateways, and payment methods through a single platform. By intelligently directing transactions through the most efficient paths, they aim to improve payment routing, reduce costs, increase acceptance rates, and ensure a seamless customer experience.

Key benefits include:

• Increased revenue: Improve online sales and revenue by simplifying the payment process, enhancing customer experience, and enabling acceptance of various global payment types.
• Reduced payment processing costs: Automate routing through the lowest-cost channels, eliminate added fees, and enable better rate negotiations with payment providers.
• Smart payment routing: Dynamically route payments based on predefined rules, such as customer risk level, transaction costs, or preferred payment methods, to optimise acceptance rates and costs.
• Real-time data analytics and reporting: Access to real-time data on payment trends, consumer behaviour, and fraud detection, promoting better decision-making. 
• Easy adaptation to consumer preferences: Adding new payment methods is simplified through a single API integration, enabling businesses to scale and support cross-border sales more easily.
• Increased authorisation rates: Orchestration platforms can significantly increase successful payment authorisations by routing transactions to the best-performing processors and or alternative providers in case of declines.
• Enhanced payment security and compliance: Orchestration platforms adhere to standards like PCI DSS, ensuring secure handling of sensitive data and regulatory compliance.

Adopting a Multi-Processor Approach

Adopting a multi-processor approach offers businesses several advantages. It provides adaptability by reducing vendor lock-in and giving greater control over payment stacks, supporting specific business needs and offering redundancy in processing. This approach enhances reach by supporting global expansion through local and alternative payment methods and enabling local acquiring, essential for entering new markets. Performance is improved as sophisticated logic in transaction routing and retries across multiple partners increases success rates and financial outcomes. Additionally, reliability is strengthened by integrating with multiple acquirers and providers, ensuring resilience and preventing customer loss in case of disruptions.

Choosing the Right Platform

When choosing a payment orchestration platform, businesses should consider several key factors to ensure it meets their specific needs. Important aspects include uptime, scalability, and the platform’s modularity, with the significance of each varying based on the merchant’s requirements and use cases. For example, a beauty retailer might prioritise a platform with seamless integration to various payment providers, offering a rich set of features that would be costly to develop internally. Conversely, a multinational merchant would require robust support for diverse global payment methods to effectively operate across multiple markets

For businesses looking to enhance their payment operations, adopting a robust payment orchestration platform like Rapyd can provide the necessary tools and support to navigate the complexities of global e-commerce effectively.