7 Reasons to Work with a Payment Orchestration Provider

 June 10th, 2020

Running a global online business is getting harder every day due to the saturated nature of the market. Not only do you need to keep up with day-to-day operations, but your business is also likely to be under pressure from customer demands, technology progress, a changing economy, and most crucially, well-established competition. Among the several ecommerce challenges, management of payment infrastructure is sometimes overlooked as it does not form part of a typical merchant’s core competence. Payment Orchestration is necessary for online businesses to scale quickly. Moreover, payment machinery is complex and needs an optimized and agile platform throughout its value-chain. The benefits of a Payment Orchestration Provider (POP) are multifold and seven of the most important ones are explained below.

1. Faster Go-To-Market

Fast market entry is one of the ingredients to success for ecommerce giants like Amazon, Alibaba, and eBay.  However, growing merchants struggle with incorporating local payment methods and providers into their payment processes. A Payment Orchestration Platform allows for an effortless one-time integration environment and ensures the initial testing of any chosen methods and providers before a merchant goes live in a region. Thanks to a POP’s modular nature and global connectivity, businesses can iron out inconsistencies and properly strategize their expansion while solidifying their presence in existing territories.

2. Negotiation Power

Local or international expansion mandates contractual obligations with different region-specific payment providers. With a POP, merchants can freely choose which payment solution to integrate. This puts them in a favorable position to negotiate pricing and conduct testing before implementation.

3. Ability to be the Pioneering Innovator

Payment processing is resource intensive. A POP gives merchants the freedom to focus on developing their business instead of managing a complex payment infrastructure. Putting a POP in charge of managing payments ensures access to a new range of innovative technologies as soon as they are available.

Besides, with the POP handling the entire payment lifecycle, merchants can innovate their core business, introduce new product lines, capture niche markets, and strategize for the future. Hence, outsourcing complexity while insourcing novel solutions by integrating with a POP is in the very interests of merchants.

4. Interoperability & Unification of Processes

Managing a massive payment ecosystem requires synergy between the various ecosystem components. A POP functions as a technology layer on top of existing and future payment connections and infrastructures that makes this synergy possible. The unified payment setup and backend provides the ability to test and add providers and methods on-the-fly while simplifying the entire payment value chain. Thus, POPs offer merchant-specific adaptability instead of a one-size-fits-all product which would stifle growth.

5. Cost Efficiency

Developing an in-house payment engine is often associated with high costs. Costs including providing a seamless customer experience, minimizing transaction costs, handling security concerns while implementing payment routing, reconciliation, and reporting demand plenty of budget and human resources. Amazon, for example, has invested tremendously in developing their in-house payment processing infrastructure. However, such expenditure is not conducive to everyone. By saving on the payment setup and transaction processing costs through POPs, businesses can direct money and effort towards their core competencies instead.

The modular and agile approach of a POP allows for effortless management of the payment infrastructure from one place. This reduces the operational and maintenance costs as there are fewer moving parts in the merchant’s payment machinery. Additionally, the POP ensures that every transaction is performed at the lowest possible cost without compromising the fluidity of the payment process.

6. Customer Experience

At the end of the day, a successful merchant relies heavily on the end-customer completing their purchase. A cumbersome checkout and faulty payment processing can jeopardize business revenue.

A POP is critical to making the payment experience a hassle-free one by reducing the number of checkout steps and supplying an engaging payment page. Integrating with a POP guarantees a secure, unified, and consistent experience regardless of device or channel. Meanwhile, built in analytics and optimization capabilities help to create context-based, engaging customer journeys.

Besides, the tokenization capabilities of POPs provide an extra level of security for shoppers. More importantly, in order to safely handle and store sensitive customer data, POPs should also be PCI DSS compliant. Along with fraud protection, this also enables the delivery of a one-click payment experience for registered customers.

7. Optimized Transaction Flows and Payment Performance

An optimized payment flow is paramount for securing successful transactions. Appealing visual design of the checkout page, intuitive interactions, and the adaptability of the payment experience based on customer history and scoring are significant features that POPs bring to the table.

Payment routing ensures that transactions flexibly follow the best path in every region resulting in higher payment acceptance rates for the lowest possible cost.

Additionally, the KPI-based analytics are also important for monitoring payment performance in real time and allow for the optimization of the processes on the go.

POPs offer a host of opportunities to propel a business towards fast scalability. Reduced operational efforts, flexibility in selecting region-specific payment providers and methods, and easy access to novel technologies means merchants can instead focus on growing of their core business and establishing a more global footprint. With rapidly evolving technologies and maturing markets, partnering early on with a POP is sure to catalyze cross-border success. To learn more, click here to download our white paper “Payment Orchestration: A Solution Created for Growth”.

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