A better customer experience starts with a better merchant experience. With the checkout experience being an important part of a merchant’s success, how are tech players adapting to merchant demands?
Convenience is top of mind for merchants no matter where they are in the world. This is especially true when dealing with complexities with different geographies, government regulations, and payments. Merchants are looking for this one-stop service to handle growing demands for location, smarter routing, lower costs, more security and greater efficiency to accept payments with optimal volume and speed.
With the advent of open APIs, industry players have begun to rely on payment orchestration platforms (POPs) for one-to-many payment orchestration solutions. This helps merchants connect directly to various payment providers, rather than having to connect directly to multiple payment methods. Merchants around the world are also turning to orchestration platforms to improve omnichannel experiences, smart routing, customer retention, and most importantly, to keep fraud in check.
POPs improve reach with single-point connectivity, data access, and security. Orchestrator platforms can handle many issues at once by centralizing their payment partners and capabilities into one platform and potentially across all of their channels. Many paid technologies have specialized to address these critical merchant needs, but they often only solve part of the problem. BPC is focused on bridging this gap so that merchants can take full control of their payment strategy in any country, currency and jurisdiction.
Let’s take a look behind the new facade of “dynamic routing”, “intelligent transaction routing” and “intelligent payment optimization”. All the words ring true but also empty with no clear direction and this is where the term “orchestration” comes in. Could you explain how the term ties everything together?
Orchestration encompasses all of the terms used above. In this industry, there is always a race to stay one step ahead: that means optimizing, doing things smart, and growing with market conditions and customer behavior. Smart routing means finding the fastest and most cost-effective route for a particular type of payment, and smart means deploying the data that is in and around the payment. It’s all true, but the real value comes from automated orchestration. Allowing a merchant to make all the necessary connections to make an online payment on a single page. In a quasi-“non-experience”, merchants use streamlined payment systems with much more security and convenience, which can generate more revenue.
For example, when the customer makes a payment, the merchant’s cashier will have the same experience as the user on the e-commerce site. It works great for airlines, multi-chain supermarkets and fashion brands that operate in multiple countries and need a service to manage currency acceptance, local market adaptation and routing. In fact, any business operating various legal entities, brands, and marketplaces equates to the vast majority of the global e-commerce market share.
Using Payment Orchestrator APIs, merchants can let their customers pay in local currencies, with the conversion taking place on the merchant side, giving them more control over transactions. Customers can use local wallets, which means more revenue for merchants. Perhaps most importantly, these large and medium-sized merchants have full access (where permitted) to data collected through transactions on their websites since all PSPs are managed uniformly. At a minimum, they can optimize by following usage trends, at best, they can create tailored proposals. Additionally, large merchants want to operate independently, and by leveraging payment orchestrators, they can standardize their payment methods and bring more transparency and efficiency to their operations.
Build your own or work with a payment orchestration platform provider?
Airlines are a great example of multi-tier organizations: they require payment orchestration through partners who can handle a high volume of transactions, including exceptions, refunds, disputes, etc., all in different locations and currencies.
Currently in the unfavorable spotlight for a range of operational issues, airlines are examples of organizations urgently questioning whether their infrastructure at least provides a seamless online experience. “Can our internal orchestration layer provide flexibility, faster time to market, and wider geographic coverage at low cost?” Finding the right POP partner or setting up payment orchestration with a full suite of payment solutions can be extremely challenging. The right orchestration solution should provide an agnostic overview, spanning multiple global PSPs, and tick all the security and regulatory boxes.
As digital payments become increasingly popular (reaching a staggering 80% in China in less than ten years), more and more regulations are being developed to secure transactions. How can businesses stay the course?
Payment orchestrators that handle payments from different channels and currencies must also help merchants adapt to increasingly stringent regulatory requirements in various geographies. With the right technology, merchants, especially in the travel example just mentioned, can achieve increased, and more importantly, consistent compliance at a lower cost.
Businesses can gain a competitive advantage as all of their payments are consolidated into one platform, simplifying all the payment processes involved and making it easier to track compliance by easing some of the regulatory burden.
Even though we are mainly talking about the online aspect of payment orchestration, we must reiterate the importance of backend solutions that include the management and processing of payments through different PSPs in a regulatory context around customer data and controls. transactions, while providing a centralized hub.
Are there any innovations in the payments industry that you are really excited about?
Payment orchestration as a service is gaining a lot of traction lately, with large and medium-sized merchants opting for it in different parts of the world. Recently, even satellite TV companies are opting for this solution: they are trying to standardize their payment methods into one simplified channel. It is encouraging to see that non-financial institutions, alongside financial institutions, recognize the need for transparent payment processes as an essential part of their offering. They now work with technology providers who prioritize merchants to accept various payment methods, keeping them transparent to the end user, while providing backend solutions like settlement, reporting, and more. . Good POP technology providers will truly manage and organize the flow of money, from accepting payment to settling with the various third parties involved.
These POPs are gaining momentum in marketplaces as multiple parties are involved and orchestrators help them improve their infrastructure. Even SaaS providers are opting for orchestrators to streamline their technology stack across various payment channels without compromising ownership of business models.
What was once considered part of managing a complex infrastructure has transformed, mainly due to the impact of technological openness with APIs and the rise of many niche fintech players, into a market segment in its own right: orchestration, a job that requires its own tools, practices, skills and above all a global experience. In short, orchestration is crucial to streamlining complex payment ecosystems, and the world is certainly waking up to it. I can’t wait to see the sequel.
About Jane Loginova
Jane wears many hats at BPC, a leading any-to-any transactions company headquartered in Switzerland. With the company for almost ten years, she has global responsibility for corporate strategy, marketing and business growth. She successfully leads BPC’s development in the rapidly changing landscape of payments, banking, commerce and mobility.
Founded in 1996, CPC has transformed over the years to offer innovative and proven solutions that fit the lifestyle of today’s consumers when banking, shopping or traveling in urban and rural areas , connecting real life and the digital world. With 350 customers in 100 countries around the world, BPC collaborates with all players in the ecosystem, from leading banks to neobanks, payment service providers (PSPs) to large processors, from e-commerce giants to startups. and government agencies to local hail transport companies.