What is Payment Orchestration

Payment Orchestration: The Way to Grow Your Business

The world of payments is becoming more and more complex. New payment methods are emerging, new channels are opening for customers to start their purchases, and new payment services are adding value to transactions, such as identity verification, tokenization, and digital signatures. All this is driven by new and demanding user preferences.

To ensure that customers choose you over your competitors, you must guarantee an optimal buying experience, both in-store and online.

In this blog, we’ll discuss how payment orchestration can optimize your business. What does it involve? Essentially, it means adding an intermediary layer between your business and payment service providers (PSPs). This way, you optimize the purchasing experience for both the end customer and your business, as payments can be routed through processors with lower costs, for example.

How Payment Orchestration Works

Orchestration is an intermediate step during payment processing, occurring between the PSPs and the digital commerce.

Payment orchestration consolidates multiple providers for various payment methods or types into a single platform: Bizum, card payments (VISA, Mastercard, Multibanco, etc.), bank transfers, SEPA direct debits, etc. This makes managing a company’s or e-commerce’s collections more efficient, optimal, and secure without requiring numerous separate integrations.

Example:

In our e-commerce, we have a customer from Portugal and another from Spain. Using payment orchestration, we offer each customer payment methods that suit their specific needs. The Spanish customer prefers card payments, VISA, and Bizum, while the Portuguese customer prefers Multibanco and PayPal. Each customer’s payment process is tailored accordingly.

How is the payment method or type chosen for each customer? That’s the role of the payment orchestrator.

1. The consumer starts the payment process.
2. The payment orchestrator offers one or more payment methods, and the customer chooses the one that best suits their case.
3. Encrypted data is sent to the payment gateway and then to the bank.
4. The bank approves or rejects the payment.
5. If rejected, the orchestrator automatically retries the payment using another method or type to prevent the customer from abandoning the purchase.

Payment orchestration aims to find the best payment method/type and provider for the transaction, with the best conditions and/or added-value services (digital signatures, identity verification, escrow accounts, etc.). You only use what you need at the right moment.

Benefits for E-Commerce: Payment Guarantees

An orchestra conductor isn’t flustered by more instruments; they simply organize them to create a beautiful melody. Similarly, payment orchestrators manage the proliferation of payment options, turning it into an opportunity rather than a problem.

The benefits of payment orchestration for your e-commerce are:

• Increased Revenue: By offering your customers their preferred payment methods/types, you increase your online store’s conversion rate.
• Customer Convenience: Making it easier for customers to pay, such as offering installment payments for orders over €500, increases their willingness to buy.
• Competitive Edge: Customizable tools set you apart from competitors.
• Cost Reduction: Choosing the most economical provider for each case can reduce costs. For large transactions, a fixed-fee PSP may be better, while for smaller purchases, a variable-fee PSP may be more cost-effective.
• Single Integration: You only need to integrate once. The orchestrator groups all payment service providers, simplifying the process and saving time and money.
• Enhanced User Experience: Meeting consumer demands and simplifying the purchasing process guarantees a good payment experience.
• Automation: Minimizes failed payment attempts and recoveries by automatically retrying payments through different providers until successful.
• Centralization: With a single platform, all data, transactions, and reports are consolidated, improving operation reconciliation.
• Security and Fraud Prevention: Centralized data reduces the payment journey, maintaining security measures and preventing data sharing.
• Internationalization: Access to various international PSPs helps non-resident customers make purchases, allowing your business to grow beyond borders.

Payment orchestration is a crucial tool for all types of businesses. It harmonizes various payment service providers, making transactions fast, efficient, secure, and with added-value services.

Want to learn more about payment orchestration? Contact us!

With WANNME, you can create a custom payment system, activate the payment methods and types you need, and utilize our security and customization features. We offer customizable, modular, and flexible solutions with countless combinations.

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