The Role of Payment Orchestration in Streamlining E-commerce Operations

As an ecommerce business owner, you surely understand the importance of offering customers a smooth, simple, safe, and quick checkout experience. It is much like leading a flawless orchestra performance. Surprised? Well, you see, just like a conductor must guide different kinds of instrumentalists seamlessly to create soulful music, your business must be able to connect and handle every single aspect of the payment process, from authorization and transaction routing to settlement. An ecommerce payment orchestration platform helps you do exactly that, by bringing multiple payment processors and methods together, enabling you to accept payments in multiple currencies, and ensuring compliance with necessary regulations around the world. Most importantly, you can manage it all from a single website.

In other words, the role of payment orchestration goes much beyond the identification of the best possible path for a transaction to go through safely and efficiently. It reduces instances of failed transactions as well as processing time and cost, thereby improving customer satisfaction. In the long run, this translates to repeat purchases, enhanced loyalty, and greater revenue. So, let’s dive a little deeper into payment orchestration and the ways in which it benefits your online business.

Steps in Payment Orchestration

Whether you are new to ecommerce or running an established business, your chief intent behind using payment orchestration is to increase the volume of authorized transactions and eliminate dependence on just one payment service provider. It is important to understand how it all works though:

• The shopper adds an item to their cart and heads to checkout.
• After choosing an online payment gateway, they feed relevant details into it.
• After encrypting the above information, the gateway uses the payment processor to send the data to the acquiring bank.
• The acquiring bank connects with the issuing bank after receiving the above data to verify the payment and authorize the same.
• Usually, you get a notification from the acquiring bank, whether the transaction fails or gets approved.
• However, in case of a payment failure, if you are using a payment orchestration platform, it will reroute the payment request to another processor.
• If the rerouting succeeds, the payment request is approved.

Payment Orchestration Offers Multiple Perks

 By 2025, Middle East’s ecommerce sector is expected to reach an impressive market volume worth USD 50 billion. To carve a special niche for yourself in this fast-growing landscape, you need a unique competitive edge. Creating a checkout experience that is simple, speedy, and yet immune to frauds, is one of the best ways to strengthen your position as an ecommerce player. Plus, you get to oversee all payment operations from a central dashboard and devise the best possible optimization strategies. Let’s explore more benefits in detail:

More Flexibility for Customers

One of the key benefits of payment orchestration for online businesses is that you can provide customers multiple payment modes and processors. Whether they choose to pay via internet banking, cards, or e-wallets, the probability of a transaction going through successfully increases sharply. This improves shopper experience, encouraging them to keep coming back to your site.

Lower Payment Processing Cost

Since payment orchestration routes transactions through channels with the minimum processing fees, it helps you to minimize operational expenses. You can also reduce setup charges and fees for automatic routing this way. By integrating with several payment providers, an orchestration platform allows you to bag pocket-friendly rates.

Better Rate of Conversion

When you simplify the checkout process for customers, offer them more options, and boost the chances of payment approval, the conversion rate improves. In other words, more customers complete transactions instead of abandoning their carts. This leads to more sales and better revenue numbers.

Enhanced Level of Security

An ecommerce payment orchestration platform centralizes payment data management, which means you get to use a uniform security system for all kinds of sensitive information. The best platforms, like PayTabs, ensure compliance with PCI-DSS and other industry standards as well as 3D protocols to prevent, detect, and address frauds promptly. Through robust encryption, customer authentication, and pre as well as post-payment checks, orchestration platforms can minimize chargebacks too. This helps reduce your overall cost.

Improved Scalability

Whether you want to foray into new markets, previously untapped demographics, or other countries, using a payment orchestration platform can help you do so quickly, seamlessly, and efficiently. It can help you accept payments in multiple currencies without worrying about exchange rates and offer customers diverse payment methods based on their region, habits, or preferences. It can help you to stay ahead of competitors as well.

Smarter Data Analytics

One of the key advantages of using a payment orchestration platform is that you get complete visibility into real-time data associated with customer behavior, transaction trends, suspicious activities, and so on. You can also get your hands on automatically generated reports for different payment service providers, which are shareable with other companies or financial entities. All this helps you identify both gaps and opportunities in the payment process and experience, which means you can take better business decisions.

Also Read: What is Payment Orchestration, and Why is It Essential for Any Business?

Up Your Ecommerce Game with a Payment Orchestration Platform

Now that you have a clearer understanding of the role of payment orchestration in ecommerce, conduct due diligence and research to zero in on a provider that best aligns with your needs and goals. With the right platform, you can process more payments efficiently, securely, and quickly, thereby improving customer satisfaction, sales volume, revenue, and bottom line. You will also gain a sharp competitive edge through enhanced data analytics and reporting, stronger security, and the ability to scale wherever and however you want. Payment leaders like PayTabs can especially make your life easy with tailor-made and affordable solutions.