The main features of the payment orchestration solution. Why you should start using a payment orchestration platform right now? How did this help solve the payment challenges of merchants?

Payment orchestration solution – what it is and how it will help in the development of your business

Integrating new methods into legacy systems can be very resource-intensive and time-consuming, and payment processing is very expensive nowadays. For this reason, more and more people are choosing the payment orchestration platform today. The cost, complexity, and resource-intensiveness of the fast-growing payment environment poses a  challenge not only to large international giants but also to merchants selling goods or services over the internet to different customer segments and in many countries. Choose the best payment orchestration solution for your business right now with Corefy.

It may not seem convenient for a business owner to ask them to sign up for another set of vendors and add another intermediate layer to the process, but it can be a solution. Let’s quickly review a few basics:

  • Payment orchestration outsources the processing of various methods and allows to connect through the application program interface. This is a bit like the promise of open banking, which allows customers to access multiple financial service providers through a single platform of their own bank account without having to create multiple new accounts.
  • While it takes a large company six to eight months to integrate a new method, a payment orchestration platform can set it up in about eight minutes. 
  • By connecting this platform, a business owner can reduce time to market with a new solution, incorporate the payment methods its customers prefer in different countries, deploy them all almost on the fly, avoid resource leakage when integrating each new solution, optimize processing costs, and efficiently collect all valuable underlying data.

Lately, this industry has been talking louder and louder about payment orchestration platforms, which just now going into production. It looks like the leaders will be corporate IT providers, not the leading banks in transactional services, although that remains to be seen.

What is payment orchestration and how can it help your business

Ever-changing shopping trends have forced merchants to use a more complex infrastructure that can support different pricing models, accept multiple PSPs, and perform hundreds of integrations for scalability. However, not many providers can support such complexity. This gap is particularly painful for merchants that operate internationally and must manage multiple providers and methods. But there is a solution to these problems. This is a payment orchestration platform that helps merchants support and build an end-to-end payment collection process, from processor deployment to invoice reconciliation.

It’s an innovation that’s designed to help merchants protect their payment flows in the future. Using a payment orchestration platform, merchants can get a single integration to manage multiple providers and methods. This eliminates the need for disparate integrations and transaction data for each provider, enabling a more flexible payment architecture that promotes cost optimization and revenue growth. Today’s business has to adapt to the ever-changing demands of customers. There is a constant need for new innovations to support better service of payment orchestration platforms, resulting in more sales while lowering the cost of payment transactions. But what does a good paying function look like? Let’s take a look at the main goals of orchestration:

  • Providing a seamless checkout process and increasing sales by optimizing approval rates.
  • Scale up and increase conversions by supporting the type of methods customers prefer
  • Reduce transaction and payment costs and increase company profits.
  • Use existing third-party applications to optimize business operations.
  • Store and manage charge data from multiple providers in a single ledger.

These overarching goals provide guidance for developing the function that will have the greatest impact on your revenue growth. Large, well-funded companies typically have their own team of engineers to develop and continually improve the payments function, but this heavy effort is scarce and costly. Best-in-class payment orchestration platforms solve this problem by providing a virtually code-free solution that helps you easily create flows that best fit any business need.

Payment orchestration vs payment gateway

Let’s talk first about the first aspect. This is a software and a service that works as a technology layer between a merchant and its payment infrastructure, helping businesses simplify and optimize processes on a global scale. The ultimate goal of the payment orchestration platform is to help expand market presence and reduce payment costs while providing customers with a compelling experience. Now let’s take a closer look at payment gateway issues and how the payment orchestration platform can offer an effective solution.

  1. High prices for payment setup. It often takes a lot of effort and expense to connect to payment gateways. This involves setting up integration and maintenance, managing risk and fraud protection, and ensuring uninterrupted payment flows. A new orchestration platform not only handles integration for merchants but also provides a suite of end-to-end payment optimization tools available from a single portal. This saves the merchant precious time and money by allowing them to invest their resources elsewhere.
  2. Substandard checkout. Consumer willingness to buy is not enough for successful sales. Companies must make sure that every purchase is successfully completed and that the customer is happy with the payment process. However, something can go wrong if the checkout process is confusing and does not provide a seamless user experience. Modern orchestration platforms will simplify the payment process by reducing the number of steps in the checkout process and providing a more attractive payment page. Regardless of where the customer is in the world, the best combination of payment options is provided with an orchestration platform. In addition, payment orchestration ensures that consumer payments are in safe hands thanks to the highest level of PCI DSS compliance and tokenization processes with maximum fraud protection.
  3. Slow transaction flow. Optimizing payment flow is critical to ensure successful transactions. If a merchant’s payment mechanism is not set up, the buyer may be prone to reject transactions. Imagine that a payment gateway suddenly fails for technical reasons. If the merchant doesn’t have a backup provider, every transaction will fail, resulting in lost revenue. Vendors need to make sure their payment transactions are secure and processed quickly. A new orchestration platform routing capabilities can ensure smooth transaction flows, routing them through the most profitable payment systems.
  4. Lack of risk management. Not all payment gateways offer a complete risk management package. Chargeback fraud, known as “friendly fraud” is one of the biggest problems for merchants – it occurs when a consumer makes an online purchase and then requests a chargeback from their issuing bank after receiving the goods. Payment gateways will charge the merchant a penalty every time a chargeback occurs because of the high risk. And that’s just one example.

So why risk revenue? Instead of dealing with the consequences of fraud, merchants can simply address the root of it. Having developed a sophisticated risk orchestration, the orchestration platform has connections with multiple providers to analyse and mitigate the risks in the most efficient way.

Why payment orchestration platform is a perfect solution?

People want to see a preferred payment method at checkout, and if there isn’t one, they can quickly backpedal. Keep in mind that trust is the most important factor in determining payment method preference, speed comes second. In addition, it’s important to shoppers that they have a choice of payment method and are looking to use solutions for a more convenient and flexible process.

With an orchestration platform, it’s easy to simplify the payment system for customers. Your business deserves a seamless and hassle-free payment experience. It can be solved quite simply Whether you own a large or medium-sized business, the orchestration platform simplifies the payment acceptance and payment process. You’ll have the following benefits:

  • Global coverage is a versatile and cost-effective payment solution a simplified way to support payments. In addition to streamlining your existing payment needs, the orchestration platform allows you to safely enter new markets without the need for complicated integration. You can help pay your customers from one part of the world to another and (virtually) everywhere. A variety of payment methods – there are many partner banks and payment service providers to find the best fit for your payment needs, and recent access to merchant servers allows us to offer more payment options.
  • Fraud Protection. Fraudulent activity in any business ranges from fake accounts and account takeovers to the sale of real assets obtained through shady means and phishing schemes. Innovative fraud protection starts from identifying and verifying transaction information to tracking corporate cash flows and profiling user behavior patterns. This is how you ensure that payments to your recipients are made through a fully compliant, secure, and regularly audited orchestration platform that is known and trusted by financial regulators around the world.
  • Optimize payment processes. Automate your payment processes with an orchestration platform from within, while optimizing end-to-end payments. This way you can significantly increase your coverage. There is also the flexibility to use new payment methods and providers to meet your client’s preferences.

The orchestration platform gives you the opportunity to enter new markets and grow your business. The flexible payment solution offers you the opportunity to connect with a wider international audience, and the advanced technology will protect your business from potential fraud.

How the payment orchestration platform helps solve payment challenges

It helps reduce payment fraud by allowing merchants to implement and test different fraud service providers without having to create multiple integrations for each fraud service provider. A special orchestration platform also contributes significantly to reducing the cost of payments. 

Payment processing fees are costs that merchants incur for processing transactions. These include interchange fees, network fees, merchant account provider fees, and fees arising from the way the card is processed. Innovative developments of the orchestration platform reduce the minimization of card scheme fees. 

You can track all authorizations at various providers in real time, allowing you to perform analytics and improve reauthorization logic. Another PSP is needed to identify and adjust interchange fee reductions. You’ll appreciate all the benefits of the payment orchestration platform from day one.

This way the merchant can detect the possibility of a downgrade to take corrective action. It will also be very easy for you to expand into new markets and accept alternative payment methods. Using the payment orchestration platform is always a good solution. Expanding into new markets is not just about selling your products to a new audience. Offering local payment methods that customers prefer is very important to secure sales. 

The next benefit of the orchestration platform is increased conversion at checkout with smart repetition. You’ve devoted a significant amount of resources to driving users to check out, but failed payment is a problem that happens more often than you’d like. With an orchestration platform, you can solve this problem by creating intelligent repeat payment logic without the need for manual intervention and extra developer effort. Set your rules in the decision tree for recurring payments and execute them automatically based on the terms that best fit your business needs.

Additionally, the payment orchestration platform allows merchants to connect with third-party fraud service providers, reducing reliance on the technical team and allowing fraudulent transactions to be evaluated and rejected. Traditionally, payment transaction teams verify chargebacks by going through all PSPs, but the payment orchestration platform can centralize this process in one place, making it much more efficient.

The trade sector is becoming increasingly digital. This makes it easier and faster for customers to buy goods, and for entrepreneurs to sell globally, expand their business and promote themselves online without having physical locations. But new technology gives room for fraudsters to operate, and banks, customers, and payments become vulnerable. To discourage illegal transactions and fraud, new rules are being introduced and protections are being strengthened. Improved technology will protect your business from potential fraud.

Get full visibility and control over all transactions with a real-time accounting system. A new orchestration platform provides merchants with the platform and tools to define accounting events and how to make accounting entries for each transaction. 

Merchants and trading venues can calculate revenue share, affiliate and transactional fees, as well as how much is paid for interchange. This simplifies payments to partners and reduces administrator time for account reconciliation, which lowers overall operating costs.

Andre Matthew
Author: Andre Matthew

Internet Entrepreneur | Digital Marketing Expert | Marketing Consultant | Stock Market Enthusiast|| Founder & CEO at Andre Matthew, based in California. andrematthew209533{@}

About Andre Matthew

Internet Entrepreneur | Digital Marketing Expert | Marketing Consultant | Stock Market Enthusiast|| Founder & CEO at Andre Matthew, based in California. andrematthew209533{@}

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