The key role of Payment Orchestration for Ecommerce growth
With the massive rise of online shopping in the past years and the steep increase in retail sales around the world, it has become vital for Ecommerce to ensure a flawless buying experience to their customers. In order to achieve this, merchants are actively looking for the right infrastructure for their Ecommerce in order to maximise conversion, reduce failed transactions and increase sales.
When looking at the customer journey, payment processing and a quick and secure check-out are important factors that lead to successful transactions. Therefore, you are probably searching for the best solution to maximise your Ecommerce sales while reducing payment processing costs. This – together with a reduction in system maintenance - is made possible by orchestrating different payment solutions and methods within the same access point.
In fact, with many different tools and payment integrations available at the moment, costs can quickly start to pile up, issues between different systems can arise and by lacking a single reporting system, data can be fragmented and more difficult to access and therefore analyse as a whole. On the other hand, relying on only one payment provider can result in a high number of failed transactions in case of technical issues.
This is why payment orchestration platforms are increasingly popular amongst medium, large and enterprise-level companies: a single point of access with multiple payment gateways and varied integrations for payment processing is the solution to many problems companies are facing.
We know Payment Orchestra™ can be the key for your Ecommerce growth, but how does it work?
Payment orchestration meaning and how it works
The meaning of payment orchestration comes from the analogy to music, where the maestro orchestrates different instruments in order to achieve the perfect symphony. The same idea works for payment processing. Each integration works within the system in order to allow the most efficient route for a quick and secure transaction. This simplifies the process, allowing your company to save on multiple integrations, while delivering a frictionless check-out experience for customers.
Moreover, the importance of data reporting and analysis has been increasingly recognised by brands and this aspect has become one of the decisive factors when choosing the right payment platform. One of the issues with having multiple integrations is that reporting is fragmented into different providers and what is missing is a holistic integrated reporting system. A payment orchestration layer tackles this problem by being the collecting platform for data and its analysis.
Therefore, it comes as no surprise that these platforms are becoming more and more popular. In fact, the global payment orchestration market has been rapidly expanding: according to a new market research report published by Global Market Estimates, it will grow at a CAGR of 20.2% from 2021 to 2026.¹
What are the benefits of payment orchestration platforms?
In the nowadays growingly competitive digital landscape, factors like transaction speed, access to preferred payment methods and guarantee of security can be decisive for customer purchases. With new websites and options available online, Ecommerce need to be able to offer what your customers are looking for. Not only in terms of product, but also ensuring a quick and easy customer experience – which in return translates to increased conversion for the merchant.
Here are the main benefits of adopting a payment orchestration platform:
- Increase conversion rate
Customer experience is key. Everything that can be done to help customers successfully carry out transactions must be of high priority. Smart routing, alternative payment methods at checkout and local currencies availability are only some of the aspects that influence conversion rates. - Never miss a transaction
Smart routing and artificial intelligence work together to ensure that in case of issues with one of the payment providers, the transaction can be carried out by an alternative one. The same goes for payment methods. - Expand to international audiences
Choosing to sell to a global audience means being able to understand different customers and cultures and providing their preferred payment method for their purchasing habits. Offering country-specific alternative payment methods and local currencies can put you on the map for foreign markets. - Helps merchants scale faster
Digital payment orchestration is completely customisable, giving you the opportunity to quickly integrate new solutions and options that accompany your business growth. This will allow you to reduce time to market by making it easier to adapt new solutions when expanding or changing your product or service offer. - Reduce fraud
Having a single platform that integrates all the steps of the transaction with multiple payment methods and providers makes it easier to prevent fraud. - Automatic reconciliation
Payment orchestration automatically reconciles all your Ecommerce transactions, which allows you to save time and money to carry out manual reconciliation of every acquirer, while ensuring an error-free process.
International businesses
For international businesses a global payment gateway aggregator means having an Ecommerce that effectively orchestrates payments from different countries in the customer’s preferred currencies and offers local payment methods. One example are favourite payment methods in China, which, as we analysed previously in the blog, are alternative payments like Alipay, PayMe and WeChat. Giving customers the option to pay with them is of utmost importance for companies that wish to carry out Ecommerce business there.
In short, payment orchestration can be the key to unlock your Ecommerce growth and take it to the next level.
