In today's rapidly changing business environment, companies often face new challenges as they expand into new markets and industries. In addition to the opportunities provided by technology, businesses must also navigate various unforeseen obstacles to succeed.
One way to overcome these challenges is through the use of payment orchestration platforms, which can streamline payment processes, improve customer experiences, and provide access to global and local connectors and payment methods. In addition, by effectively managing and automating payments through a centralised platform, businesses can free up resources and focus on more lucrative areas while positioning themselves for unlimited growth opportunities.
Payment orchestration can be helpful for businesses or organisations that need to manage large volumes of transactions, or that want to offer their customers a variety of payment options. It can potentially democratise transactions by making it easier for businesses and individuals to access a wide range of payment options and channels
The demand of the post-pandemic economy
The global economy faces many uncertainties and disruptions, including political tensions, supply chain disruptions, rising inflation, and a potential global recession. These factors contribute to slow economic growth in many countries, including Britain and the United States, and the trend will likely continue into the following year.
The payment orchestration platform market saw growth opportunities during the coronavirus pandemic due to the shift towards cashless payments and the acceleration of digital financial transactions. To stay competitive, businesses and financial institutions need to provide excellent customer experiences and continually innovate to retain customers in a challenging market. One rising trend is the digitisation of services and the growth of digital payments, which are expected to reach a total value of $15.17 trillion by 2027, growing at a rate of 12.31%.
Meanwhile, according to a recent report byKBV Research, the global payment orchestration platform market is expected to reach $3.7 billion by 2028, with a compound annual growth rate of 22.4% during the forecast period from 2022 to 2028. North America currently holds the largest market share due to the presence of several major players in the region and the need to combat fraudulent activities due to increased cybercrime. Key companies in the market include CellPoint Digital, IXOLIT Group, Payoneer, APEXX Fintech, Rebilly, Spreedly, Modo Payments, Akurateco, BNT SOF, and aye4fin.
Payment orchestration is crucial in facilitating frictionless online transactions by integrating and managing a company's billing and payment processes through a single software solution that connects with multiple payment service providers, acquirers, and banks. It enables online merchants to focus on their core business by streamlining payment processes and providing real-time data analytics. Payment orchestration also allows merchants to optimise payment processes, reduce false declines, and improve payment acceptance rates through technologies such as dynamic routing.
In addition, it helps merchants to maintain compliance with regulations and keep payment systems secure while lowering operational costs and improving the customer experience.
The future of payment orchestration
Payment orchestration platforms (POPs) offer several advantages over payment service providers (PSPs) or aggregators. POPs allow merchants to manage their payment infrastructure, track centralised analytics in real time, and optimise their use of PSPs through automatic selection based on minimal transaction fees. With their comprehensive features, POPs can help merchants to grow more quickly and flexibly, reduce the number of unsuccessful transactions, lower operational costs, lessen compliance requirements, and streamline back-end payment processes. The ability to manage and coordinate multiple payment channels and methods to facilitate transactions between buyers and sellers, often using specialised software or platforms that integrate with payment gateways, banks, and financial institutions, makes POPs popular among merchants.
However, they are not without weaknesses, with the lack of agility becoming one of the most prominent. It often struggles to integrate new payment options quickly and faces difficulty analysing dispersed transactional data among multiple PSPs and gateways. Its current common functions, such as fraud detection and prevention, risk management, and reconciliation of payment transactions, can also see some upgrades. In such aspects, there are several innovations in the payments industry to look forward to, including:
Artificial intelligence in fraud detection: Improved capabilities that allow businesses to identify and prevent unauthorised and fraudulent activities.
Automation and robotic process automation: Programmable bots that can handle repetitive tasks such as data entry, calculations, audits, and invoicing, reducing the likelihood of errors and improving efficiency in payment approval, processing workflows, and handling orders.
Debt simplification: Platforms that help customers manage multiple credit cards and make better financial decisions about payments.
Reg-tech: Technologies that make it easier for businesses to comply with regulations and reduce non-compliance fines.
