Payment Orchestration: More Than a Trend (Part II)

How to control transaction flows, reduce fees, & increase customer loyalty
February 04, 2021 | Expertise

In our first article we looked at what features made payment orchestration an essential part of your payment stack, such as smart transaction routing and payment failover routing to increase conversions, multi acquirer set-up to protect against payment outages, and how you can quickly reach new markets with local and international payment methods via one integration. Now we will dig a little deeper and think about what payment orchestration actually is, and how it enables merchants to stay in control of their payments and give their customers an optimized experience that will incentivize loyalty. Payments are an essential part of a user’s experience and in using a payment orchestration platform you can use geo location and tokenization for effective personalization.

What is Payment Orchestration?

A payment orchestration platform, or a provider of payment orchestration, is a payment agnostic technological layer that pushes transactions to payment service providers and acquirers based on an algorithm and provides reconciliation and settlement services. The payment orchestration platform should have no financial interest in the actual processing of the payment.

How does payment orchestration help businesses stay in control of their payments?

Managing a large multi commerce payment ecosystem requires synergy between the various enterprises. The payment orchestration platform works as a technology layer between the merchant and the payment connections, making this synergy possible by creating a payment hub. Discover how it has worked for Omicron Media and Austrian post. By offering adaptability and customization, merchants avoid the one size fits all dilemma and have a centralized payment infrastructure that is unique for the business.

With a payment management platform handling the payment life-cycle and easing risk management, merchants can focus on innovating their core business, introducing new product lines, capturing niche markets, and strategizing for the future.

How can businesses lower their transaction fees?

Developing your own in-house payment engine is an option but comes with risks. The IXOPAY founder discussed this in an article, as this is how IXOPAY came about. Costs include providing a seamless customer experience, minimizing transaction fees, handling security concerns while implementing payment routing, reconciliation and settlements, and reporting. To do this on your own you will need a dedicated team which can become expensive. Using an independent payment orchestration provider (PAAS) saves on the payment set up and transaction processing costs – find out more about credit card processing fees – and allows businesses to use the savings made to invest in their core product or service.

With a one time integration, you can have access to IXOPAY’s state-of-the-art payment service and infrastructure. Giving you effortless management over your payment ecosystem from one easy-to-use platform. This reduces the operational and maintenance fees, as there are fewer moving parts in the merchant’s payment machinery. Additionally, it ensures that every transaction is performed at the lowest possible cost without compromising the fluidity of the payment process.

How can you create an optimal checkout experience for your customers?

Payments are critical to the survival of any business and if a client is unhappy or distrustful of a checkout page they won’t use it and abandon their shopping cart. IXOPAY is devoted to fulfilling the customers’ expectations, making the payment experience as hassle-free as possible by reducing the number of checkout steps necessary.

Choose from a host of integration possibilities giving your checkout page an appealing and legitimate visual design. Adapt the payment experience based on customer history to ensure a seamless checkout. With a payment management platform, you are able to ensure personalization and increase the likelihood of creating a loyal customer.

How can online merchants minimize risk?

Stay on top of data security by using a payment platform with a PCI DSS compliant vault and tokenization capabilities. You can store your customers’ payment details securely so that when they come back they no longer have to fill in their payment details. Having an additional orchestration layer means you will avoid having your payment data being held hostage and have the freedom to connect to as many acquirers and providers as necessary. Tokenization, which is a form of payment automation, is an important tool that increases repeat business, using a platform like IXOPAY, allows you to have complete control over this data. 

With a risk management engine you can create risk rules based on payment methods,  locations of payment, type of payment, in fact there are multiple rules that can be created and implemented to keep your bottom line safe. These rules and the scorecard that the answers create can then trigger risk actions; such as enabling 3D Secure verification, the sending of notifications, or the parking of a transaction on a list for manual verification. When using multiple payment service providers, centralized risk management ensures protection, no matter where the payment is routed.

As we mentioned in the first article, 2020 gave everyone in the payment business a moment to take stock. Without payments merchants wouldn’t be able to sell goods or services online, they are mission critical. With that in mind, it is essential to create a payments experience that empowers the customer. This increases satisfaction and loyalty. With IXOPAY, businesses can unify their payments and provide intuitive experience for their consumers. Not only that, they benefit from having everything on one easy-to-use platform that has the flexibility to grow. Future-proof your payments with IXOPAY. To find out more about payment orchestration and how it will improve your payments solution, get in touch with our sales team who will be happy to provide a platform demonstration.

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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.

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