Payment Orchestration & the Platform Benefits
What is a payment orchestration platform?
A payment orchestration platform gives merchants of large enterprises complete control of their payment stack. It is a technical layer that consolidates all aspects of payments. Meaning you can have access to multiple payment methods; use transaction routing with conversion boosting features such as cascading and failover; consolidate reconciliation and settlements; monitor transactions in real time to avoid false positives; mitigate risk; tokenize customer payment data; and more all in one place. Accepting payments online has never been so easy. However, with more and more payment methods becoming available and more service providers on the market, trying to figure out what will work for your business can be a big challenge. This article looks at the key features that make payment orchestration an essential component of your payment stack.
What are the advantages of a payment orchestration platform?
A payment orchestration platform (also known as an online payment management platform) has a variety of tools that help eMerchants manage their transactions, from routing to reconciliation.
Industry leading platform have integrated features such as:
- PCI Card vaulting/Tokenization
- Transaction routing
- Automated Reconciliation & Settlements
- Transaction risk management/fraud protection
- Support recurring transactions
- Monitoring & reporting/Payment analytics
- Connectivity to multiple payment methods and acquirers
The platform provides merchants with independence and flexibility giving them an overall view of their transactions, regardless of who processed them as well as access to a PCI vault. We have seen the damage that can happen in placing all of your eggs in one basket. The downfall of Wirecard in 2020 is a pertinent reminder that spreading the risk is not just sensible but essential. Companies that used Wirecard as a one stop shop for their payments suddenly could not accept any in what was already an economically testing year. The need for a failover, which could pick up the slack, was excruciatingly apparent. Those who had no payment switch option were left stranded, and it forced some into financial difficulty
How can you accept payments for your online business quickly?
An issue that many eBusinesses face is the length of time it can take to connect to a payment service provider. Getting started with a payment processing API integration (acquirers, PSPs, etc…) takes time and money. With IXOPAY, the connections are already in place. As soon as the eMerchant has finalized a merchant account contract with the provider, the merchant can configure their connection in the IXOPAY interface. With IXOPAY you can connect to over 90 local and global payment service providers, acquirers, and banks. Due to IXOPAY’s customizable nature and global connectivity, businesses can mix and match to see what works and strategize their expansion while cementing their presence in existing markets.
What is the best solution to accept cross-border payments seamlessly?
For effective local or international expansion, you will need more than the standard international payment methods such as credit card or bank transfer, you may need to integrate more payment service providers who offer local payment methods, which will give your consumers the optimal checkout experience. As we can see in The Paypers report, every country has its own preferred methods and within that, each demographic will have its unique preferred payment method. With an agnostic payment orchestration platform, merchants can choose which payment solution they wish to integrate. Putting them in a favorable position to negotiate costs. In using a payment orchestration platform, you can easily add alternative payment methods to your mix. With IXOPAY, you need only one integration to manage multiple payment gateways.
How does Transaction Routing improve payment performance?
In having an additional payment orchestration layer, businesses can route their transaction ensuring that they follow the best path in every region, resulting in higher payment acceptance rates at the lowest possible rates. You can also implement conversion boosting tactics such as cascading or fallback routing for an optimized payment flow. Being able to use payment routing increases your conversion rates and improves client relationships. When a merchant relies solely on one payment service provider, they can experience payment outages, high payment churns, and delays in transaction authorization. This can cause customers to become frustrated and distrustful and unlikely to return. By using a routing engine, the platform will push the transaction onto the next payment provider and so on until it is authorized.
The KPI-based analytics are essential for monitoring payment performance in real-time and allow for the optimization of the processes. The easy to analyze data enables you to build routing channels that improve conversion rates and lower processing fees.
If we have learned anything from 2020, it is that a lot is at stake when it comes to payments. With that in mind, it is best to invest in a future-proof strategy that will enable your business to scale and reach new markets. Instead of being a one-stop-shop IXOPAY is the unification of payment management. You can find out more about payment orchestration in the follow up article which will focus the customer experience. Follow us on social media and sign up to our newsletter so you don’t miss out.
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IXOPAY is a payments orchestration platform enabling independent, flexible and global payment processing. As a highly scalable and PCI-DSS certified “fintech enabler”, IXOPAY fulfills the needs of large merchants as well as those of “white label” clients: payment service providers (PSPs), acquirers and independent sales organizations (ISOs). The modern, easily extendable architecture offers smart transaction routing & cascading, state-of-the-art risk & fraud management, fully automated reconciliation and settlements processing, comprehensive reporting as well as plugin-based integration of acquirers, payment service providers and alternative payment methods (APMs).
IXOPAY is part of the IXOLIT Group, founded in Vienna, Austria in 2001. With local entities in Austria and the USA, IXOLIT supports national and international customers across various industry verticals. The owner-led and -financed company has grown from 2 to more than 65 employees and is focused on building innovative solutions for eCommerce.
Please find more information about IXOPAY here: https://www.ixopay.com