By next year, global online retail sales are expected to reach $9.4 trillion. Even so, many online retailers aren’t currently well-positioned to take a big slice of that pie. With the market growing at such an unprecedented pace, retailers must keep enhancing their workflows, improving their processes, and keeping up with customer demand to remain competitive.
One approach that can help retailers streamline their payment processes is implementing payment orchestration. Read on to learn what that means and how to benefit from it.
What Is Payment Orchestration?
Payment orchestration involves the integration of different payment services, such as routing transactions and authorizing payments, into a single platform. This approach helps retailers be more agile and scale faster. It makes it easier to enter new markets, accommodate different currencies, and integrate payment providers from various regions.
A payment orchestration platform also helps online retailers connect their websites to their payment providers. For instance, this allows your website to connect many payment processors at the same time. This would give customers more payment options while simplifying both your back-end and front-end processes.
Key Benefits of Payment Orchestration
Beyond the simplified processing, payment orchestration increases operational efficiency. This approach automates many manual tasks associated with processing, such as routing and reporting. As a result, your business can reduce the risk of errors and free up resources that you could transfer to your core activities.
Payment orchestration also helps businesses reduce their processing fees. The platform will analyze factors like provider fees and transaction size to intelligently route each transaction. This can lead to substantial savings in the long run. A better checkout experience will also reduce cart abandonment rates and lead to increased sales.
Finally, payment orchestration platforms usually come with advanced security features and fraud detection. Once you centralize payment data, you’ll also be able to rely on machine learning algorithms to prevent fraudulent activities more frequently.
How to Choose a Payment Orchestration Platform
A good payment orchestration platform should have a united frontend experience. Customers expect their checkout experience to be consistent and frictionless, particularly if they’re giving you their sensitive data. You need to present them with the most relevant options and payment methods without impacting the user interface (UI).
Next, your payment orchestration platform should enhance your payment reliability. For example, if one of your payment processors encounters downtime, your platform must be able to effortlessly route the transaction to an alternative processor. No matter what’s happening behind the scenes, your customers must not experience any payment disruptions.
Your choice of a payment orchestration platform will also depend on the apps and services you use. On average, it takes five to six services to process one payment. Modern orchestration allows you to bring your preferred services and workflows together.