What Is Payment Orchestration?

Every year digital payments increase their market share for worldwide transactions. This creates the need for businesses to constantly seek innovative solutions to navigate the complexities of their e-commerce payment stack. Payment orchestration can be a game changer here, offering quick connection to a myriad of payment gateways and other providers. Let's take a look at the concept of payment orchestration, understand its nuances, and explore how it is revolutionizing digital payments.

What is Payment Orchestration?

Payment orchestration refers to the strategic management and coordination of multiple payment gateways, processors, and methods within an organization's payment framework. Instead of being tethered to a single gateway or provider, businesses can freely integrate and optimize across various payment providers, ensuring flexibility, redundancy, and global reach. With worldwide online sales transactions projected to reach $5.9 trillion by the end of 2023 money is being left on the table by not orchestrating payments.

Businesses Types That Benefit Payment Orchestration

An important concept is that payments orchestration is not a one-size-fits-all solution. Its versatility means that a wide range of businesses stand to benefit:

• Merchants: Whether they’re large enterprises or smaller retailers, merchants can increase transaction success rates, cater to global customer bases, and streamline their operations.
• Platforms: E-commerce platforms, marketplaces, and other digital platforms can seamlessly integrate various payment methods, ensuring smooth transactions regardless of the buyer's or seller's preferred payment method.
• Subscription Services: These businesses, ranging from streaming platforms to monthly box services, can leverage vaulting for seamless renewals and recurring payments, ensuring consistent revenue and improved customer retention.

How Does Payment Orchestration Work?

The essence of payment orchestration is its ability to function as a centralized system, interacting with multiple payment providers. Here's a step-by-step breakdown:

• Integration: Through a single unified API, businesses connect to Spreedly’s orchestration platform.
• Transaction Initiation: When a customer initiates a payment, the orchestration platform steps in.
• Smart Routing: The platform determines the best gateway or processor for that particular transaction based on predefined criteria.
• Transaction Processing: The chosen gateway or processor handles the transaction.
• Feedback Loop: Post-transaction data returns to the orchestration platform, continuously refining the decision-making process.
• Vaulting: Orchestration platforms will vault your payment methods and keep them up to date for secure transacting across providers.?

Key Features of Payment Orchestration

Given the complexity of the payments vertical, it’s easy to mix up payment providers and payment orchestrators. Spreedly’s payment orchestration features distinguish it from traditional payment solutions. These features not only simplify the payment process but also enhance its efficiency and security.

Smart Routing

Spreedly's dynamic routing ensures that transactions are directed based on success rates, costs, or other criteria. This optimization leads to enhanced approval rates and reduced processing fees. For example, a business with global operations can ensure that a transaction from Europe is routed through a gateway that offers the best rates and lowest latency for Euro transactions.

Connecting to Multiple Payment Gateways

With Spreedly's single integration, businesses can utilize multiple payment? gateways , enabling local payment methods and allowing for global payment coverage. For instance, an online store selling products worldwide can easily accept payment methods in both the U.S. and Japan without having to manage multiple gateway integrations.

PCI Compliance

Ensuring adherence to the Payment Card Industry Data Security Standard (PCI DSS) is paramount, especially with the upcoming PCI DSS 4.0 shift in 2024. Spreedly streamlines this compliance, mitigating risks and ensuring that customer data is securely handled. This ensures that businesses, whether they are start-ups or established entities, can transact with confidence, knowing their customers' data is protected.

Vaulting

Spreedly's advanced vaulting capability facilitates the secure storage, active management, and tokenization of payment details. This is crucial for businesses offering subscription-based services or those with repeat customers. For instance, an online magazine subscription service can offer seamless monthly renewals without requiring subscribers to re-enter their payment details every time.

Reporting

Spreedly provides businesses with a consolidated view of payment data across all integrated gateways. This invaluable insight aids informed decision-making. An e-commerce platform, for instance, can analyze transaction data to identify peak sales times, preferred payment methods, and more, tailoring their strategies accordingly.

The ROI Perspective: Value of Payment Orchestration

From an investment standpoint, the return on embracing payment orchestration is significant. Let's break down its multifaceted value:

• Operational Efficiency: Eliminating the need for multiple integrations reduces operational overhead and accelerates time-to-market. For instance, a business transitioning to a global market can quickly integrate with local payment gateways without the hassle of individual setups.
• Increased Approval Rates: Smart routing optimizes transaction success, directly boosting revenue. A retail store, for example, can see increased sales during peak times by ensuring transactions aren't declined due to gateway downtimes.
• Global Expansion: Access to numerous gateways facilitates global reach, tapping into new markets and customer segments. A brand aiming to launch in Asia can easily accommodate local payment preferences, enhancing customer acquisition.
• Risk Mitigation: Robust security features and compliance adherence reduce potential financial liabilities. Consider an e-commerce platform; by ensuring PCI compliance, they not only safeguard customer data but also prevent potential fines and legal ramifications.
• Improved Customer Experience: Offering a wide array of payment options and ensuring transaction success enhances customer satisfaction, fostering loyalty. A subscription service, for instance, can benefit from vaulting, offering customers a seamless renewal process without re-entering payment details.

Why Payment Orchestration Is Necessary

In an era where customer experience and operational agility are paramount, payment orchestration is no longer a want, but a need, increasing the scope of your business while optimizing for costs and success rates. As businesses grapple with the complexities of global commerce, platforms like Spreedly enable all business types to ensure seamless, secure, and efficient digital transactions. Embracing payment orchestration isn't just a strategic move, it's a necessary step toward shaping the future of your digital payments.