Payment Orchestration: Key to Leadership

The payment orchestration market is growing fast. We’re talking about a 20% annual growth rate. For online merchants looking to stay ahead, this isn’t just a passing trend – it’s a business necessity. The ability to manage payments across multiple service providers, payment methods, and regions with a single platform is no longer a nice-to-have; it’s a strategic advantage.

If you’re in the game of online commerce and you don’t yet understand how payment orchestration can work for you, it’s time to start paying attention. Here’s what you need to know.

What is payment orchestration, anyway?

In simple terms, payment orchestration is the process of managing and optimizing your payment flows through a centralized platform. It connects you to multiple payment service providers (PSPs) and payment methods, enabling you to process transactions faster, more securely, and with higher approval rates.

The thing is, as your business expands globally, managing payments becomes more complex. More markets, more methods, more providers – it’s a lot to juggle. Orchestration platforms help you manage it all through one system, eliminating friction, reducing declines, and enabling you to scale with ease.

How payment orchestration works

When a customer checks out on your website or app, the payment process behind the scenes is anything but simple. Payments are routed through multiple channels, processors, and gateways. Payment orchestration platforms step in and make sure the payment gets routed through the best channel to maximize success.

If one provider declines a transaction, the platform automatically reroutes the payment to another processor. Not only that, but you’re able to offer the right payment methods for the right markets, increasing conversion rates and revenue. This means fewer payment declines, more approvals, and improved bottom line. 

Here’s a breakdown of how payment orchestration operates:

• A customer selects a product or service and adds it to their online shopping cart on a merchant’s website. They then proceed to the checkout page to choose their preferred payment method from the available options.
• Once the customer completes the order, the payment details are transmitted to a payment gateway.
• The payment gateway secures the customer’s payment card information through encryption before forwarding it to the acquiring bank and payment processor.
• Upon receiving the data, the acquiring bank engages with the issuing bank to validate and authorize the payment.
• The acquiring bank sends the authorization or rejection response code to both the payment gateway and the merchant. However, payment orchestration platforms employ an alternative approach. In case of a payment failure, the platform automatically reroutes the same payment request to another payment processor, reducing the likelihood of false declines.
• If the alternative payment processor successfully processes the payment, it receives approval.

For example, a merchant in Southeast Asia using a payment orchestration platform saw a 30% increase in approval rates after leveraging our intelligent routing system to optimize payment flows across multiple local payment methods like Alipay, WeChat Pay, and credit cards.

Why global online merchants need payment orchestration

Online businesses are growing globally, and with that comes a whole new set of payment challenges:

• Diverse payment preferences: Customers across the world don’t want to pay the same way. Offering local payment options isn’t just a nice perk; it’s necessary if you want to capture those markets.

• Integration complexity: The more payment providers you work with, the more complex it gets. Payment orchestration simplifies this by allowing you to integrate once, then plug into multiple providers.

• Operational headaches: Managing multiple payment methods, currencies, and regulations can be an operational nightmare as you scale to more markets. Orchestration platforms offer a single, unified solution, giving you the tools to operate globally without the headaches.

The strategic advantages of payment orchestration

Payment orchestration platforms offer numerous benefits to businesses seeking streamlined and efficient payment processing. Here are some key advantages of incorporating such platforms into your payment ecosystem.

Access to multiple payment connectors 

Every region has its own payment preferences. To tap into these markets, you need access to localized payment options. Payment orchestration platforms allow you to easily connect with regional payment providers, helping you serve your customers better, increase conversions, and expand globally.

Reduced integration cost

It’s not just about what you save in tech and support costs. Orchestration platforms let you get to market faster. For businesses looking to scale, partnering with payment orchestration platforms means you spend half the time integrating with multiple providers. That’s time and resources you can better spend on innovation and customer acquisition. 

Smart routing = higher conversion rates

Payment orchestration platforms help to intelligently route transactions to the most suitable payment gateway or provider based on factors such as location, MCC, transaction type, and success rate. This ensures that transactions are more likely to be authenticated and approved, reducing the chances of false declines. Given Solidgate’s experience, the properly configured routing through the payment orchestration platform can increase the authorization rate by 20-30%.

Improved payment flows

Managing multiple service providers, currencies, and payment channels can be a nightmare. Orchestration platforms consolidate all this complexity into one easy-to-manage system. This reduces friction, makes the payment process smoother for customers, and improves payment reconciliation for businesses.

Scalability at its best

The usage of the platform should be cost-effective for the business unit economy, with transparent pricing and no hidden fees. Choose the platform that can offer tiered pricing. That will help you to gain pricing advantages once the volumes grow. Some of the orchestration platforms can also apply a monthly minimum fee. That’s why it is extremely important to carefully forecast your processing volumes in order to cover all potential costs.

Improved payment analytics

Merchants gain deeper insights into their payment operations with real-time analytics. Orchestration platforms offer advanced reporting tools to track success rates, identify trends, and make data-driven decisions that improve your payment processes and revenue streams.

Increased Payment Security

Payment fraud is a growing concern for online merchants. Orchestration platforms can provide advanced fraud detection and prevention tools that block fraudulent transactions in real-time. With multi-layered security features, merchants can protect both their revenue and their reputation.

Why Choose Solidgate as Your Payment Orchestration Partner?

Solidgate is more than just a payment processor – it’s merchants’ strategic partner in payment optimization. With years of experience in payment orchestration, we understand the challenges that online merchants face when expanding globally. Our platform not only streamlines payment operations but also gives the flexibility to scale, improve conversions, and protect against fraud.

 Solidgate provides access to:

• A comprehensive suite of payment methods tailored to global markets.

• Industry-leading fraud protection that reduces the risk of chargebacks.

• Scalable payment flows that grow with your business.

• Actionable analytics to optimize your payment strategy.

Conclusion

Payment orchestration is no longer a luxury—it’s a necessity for businesses that want to optimize payments, expand globally, and maximize revenue. With Solidgate, payment orchestration isn’t just about processing payments; it’s about transforming your business operations and creating a seamless experience for your customers. Whether you’re a small business or a large enterprise, payment orchestration can help you navigate the complexities of the modern payments landscape.

Ready to enhance your payment experience and unlock your global potential? Book a call with Solidgate experts to see how our payment orchestration platform can work for you.

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