Why Payment Orchestration Beats Processing: 4 Key Advantages for Your Business

Remember when a single payment processing partnership seemed like the "easy button" to solve all your complex payment-related problems? Us too. We’ve also seen how the “easy button” is no longer a feature or a benefit for businesses, and it’s why we are focused on Payment Orchestration. Payment Orchestration is redefining the payments landscape with numerous, future proof features and benefits.

To keep it simple, in this post we'll explore four key differences between payment processing and payment orchestration, and focus on the tangible advantages that the latter brings to the table. 

Let’s go!

Flexibility & Scalability

Difference: Payment processing primarily involves the technical and financial aspects of a transaction, like authorization, clearing, and settlement. It is typically offered by a single provider and can be limiting in terms of the range of payment options and growth potential. On the other hand, payment orchestration is a more holistic approach, integrating multiple payment providers and channels to deliver a seamless and flexible customer experience.

Why Orchestration Wins: Payment orchestration provides the agility needed to adapt to market changes, add new payment methods, and expand your business globally. It scales seamlessly, allowing you to enter new markets with ease. According to a 2020 report by Edgar, Dunn & Company, companies that adopt payment orchestration see a 1.5% to 3% increase in revenues due to better customer conversion rates and reduced operational costs. Now, who wouldn't want that boost in their bottom line?

Reduced Costs & Complexity

Difference: With payment processing, companies often work with multiple providers to cater to various payment methods and regions, which can lead to increased complexity, higher costs, and operational inefficiencies. Payment orchestration, however, consolidates these disparate connections, streamlining the entire process and reducing the need for manual intervention.

Why Orchestration Wins: By embracing payment orchestration, companies can significantly reduce payment processing fees and the cost of managing multiple provider relationships. Less hassle, more savings – what's not to love?

Real-time Payment Routing and Automated Payment Routing

Difference: The speed and efficiency at which transactions are processed. Payment processing typically involves a batch processing model, which means that transactions are processed in batches at specific intervals. This can result in delays in processing times, which can impact customer experience. Payment orchestration, on the other hand, uses real-time payment routing to ensure that transactions are processed quickly and efficiently. This can result in faster processing times, which can improve customer satisfaction and reduce the risk of abandoned transactions. Research continues to illustrate that payment orchestration can reduce transaction times by up to 30%.

In addition, payment processing often involves manual intervention in the payment routing process, which can lead to errors, delays, and increased costs. Payment orchestration, on the other hand, uses automated payment routing to ensure that transactions are routed to the most appropriate payment provider based on factors such as location, currency, and payment method. This can result in more efficient processing, reduced errors, and lower costs. 

Why Orchestration Wins: Businesses that use payment orchestration are seeing reductions in their payment processing costs of up to 20% (and often more). By using both real-time payment routing and automated payment routing, payment orchestration delivers a faster, more accurate, and cost-effective payment experience for businesses and customers alike.

Enhanced Security & Compliance

Difference: Payment processing providers often have their own security and compliance measures, which can vary across the board. This inconsistency can be a headache for companies looking to maintain a consistent security posture. Payment orchestration, in contrast, provides a unified security framework that addresses compliance challenges and reduces risk.

Why Orchestration Wins: With payment orchestration, you can maintain a single security standard across all payment providers, ensuring that you meet industry requirements like PCI-DSS and GDPR. This streamlined approach to security translates to reduced risk and an increased level of trust from your customers. Plus, it'll save your team countless hours deciphering convoluted compliance documents.

Improved Customer Experience

Difference: Payment processing often lacks customization options, leading to a disjointed user experience. Payment orchestration delivers a personalized, seamless payment journey by offering customers their preferred payment methods and currencies, while also optimizing transaction routing for faster approvals and lower decline rates.

Why Orchestration Wins: An optimized payment experience leads to higher customer satisfaction and, ultimately, increased revenue.A 2022 study by the Commerce Signals highlighted that 23% of online shoppers abandon their carts due to limited payment options. By offering a tailored payment experience through orchestration, you'll keep your customers happy and coming back for more!

Our Opinion

We believe Payment Orchestration is a game-changing solution for businesses, especially those operating globally. It’s why we’re investing so aggressively in our technology and our partnerships. By offering flexibility, reducing costs, enhancing security, and an improving customer experience, all of the foundational elements are present for major impacts to be made for you and for your customers. 

By switching from payment processing to payment orchestration, your business can reap the benefits of a streamlined, efficient, and future-proof payment system. 

Let’s talk, and we’ll show you how.