When accepting credit and debit cards, you must find the right payment solution that fits your needs and goals. While many people have heard of payment orchestration, it's not clear how it can help businesses grow. This article will help you navigate the various features and functions this solution offers to find the best one for your business.
What is payment orchestration?
A payment orchestration platform is a framework that enables banks, credit card companies, and other financial institutions to manage the entire payment process from start to finish. It allows them to connect to various payment service providers and banks on a single software layer.
Why payment orchestration
Accepting payments online is very important for businesses as it allows them to continue to grow. Proper processing capabilities are also essential to ensure that customers receive the best possible service.
One of the most important advantages of a payment orchestration platform is connecting to multiple payment service providers. This can help businesses reduce their transaction costs and improve their conversion rates. By sending payments to various payment processors, they can also increase their number of authorised transactions.
One of the most essential features of a payment orchestration platform is its ability to create reports that merchants can use to monitor their payments. This eliminates the need to leave the platform to manage their entire payment process.
Benefits of payment orchestration
Before you start considering a payment orchestration platform, one of the most important questions you will have, is whether it's worth your time and money. There are many advantages and competitive factors you should consider when choosing a payment orchestration platform.
Improving business scalability
Getting into new markets can be a challenging task, especially when it comes to integrating various payment providers and currencies. A payment orchestration platform can help you quickly launch new payment options and manage the different aspects of your business. Its flexible architecture can help you integrate third-party providers' APIs and provide a more efficient and streamlined payment system.
Smart routing
One of the most important features of a payment orchestration platform is its ability to route payments. This allows merchants to control the flow of their transactions through various channels. For instance, they can easily choose the appropriate channel for their high-risk customers.
Improved customer experience
Studies have shown that about half of e-commerce customers abandon their cart due to a lack of convenient payment options. You can prevent this with a payment orchestration platform by creating a consistent and secure checkout process. For instance, you can set up an embedded function that allows customers to remain on your site or your app instead of being sent to external pages.
How does payment orchestration work?
When a customer makes a purchase on e-commerce site, they are presented with a list of payment methods from which they can choose. They can also click the "Checkout" button to complete their transaction.
Once a customer places an order, their payment details are automatically sent to a payment gateway. This platform can also help merchants set up rules to send certain types of transactions to a particular gateway with the lowest possible fee or approval rate.
The payment gateway then encrypts the customer's information and sends it to the bank and the payment processor for secure processing.
The banks and the payment gateway then exchange information regarding the pending transaction. Usually, when a transaction is submitted, the acquiring bank will send an authorisation response code to the merchant and the payment gateway. With a payment orchestration platform, instead of sending the transaction to the bank, the subsequent transactions are routed to another payment processor to prevent fraud.
If a transaction is approved through a payment orchestration platform, the customer doesn't have to deal with the frustration involving failed payments. The merchant gets paid, and the customer doesn't have to deal with a failed transaction.
