Getting Started with Payment Orchestration
So, In a Nutshell…
🔸 Payment Orchestration consolidates all the key components for smart payment processing on a central software layer
🔸 A provider-agnostic/vendor-agnostic Payment Orchestration layer streamlines the integration and management of multiple payment service providers
🔸 Payment Orchestration optimizes payments by routing transactions along the optimal, reliable path
🔸 Payment Orchestration enables offering of multiple payment options, while making a business independent from single payment providers, fraud prevention solutions etc.
The payment orchestration platform you integrate must fit your business strategy. There are plenty of factors that play into this decision: From budget to regulations to markets to software frameworks.
✅ As-a-Service Payment Orchestration Layers
As Payment Orchestration is gaining traction in the platform economy, the choice of as-a-service Payment Orchestration solutions is broadening.
Companies like IXOPAY or GR4VY provide SaaS payment solutions that streamline transactions between platforms and payment providers. These third-party solutions usually support a range of partners (PSPs, acquirers, etc.). They also may have preset payment routing preferences. Pricing often involves pay-per-payment or pay-per-API-call rates, which can potentially increase costs over time.
Another downside to this approach is, that, while your company is not dependent on external PSPs, it is still dependent on the Payment Orchestrator and their vision on how to expand their PO product in the future. Depending on the solution, this can mean that the exact PSP you want to integrate might not be supported. And if you decide to sever your ties to a Payment Orchestration provider, it can be difficult to migrate your system to another one in due time.
✅ In-House / On-Prem Payment Orchestration Layers
🔸The main benefit of having an in-house / on-premise Payment Orchestration Layer that you have full control over your solution including
🔸The feature set, allowing to add differentiation features for more customer retention
🔸All payment flows handled within your system to provide a best-in-class experience
🔸Operational topics like security updates, cloud providers of your choosing and so on
🔸And – most importantly – the whole of the payment data processed in your system
Thus, on-premise Payment Orchestration Layer enables you to provide an optimal checkout experience and special features for your customers, giving you a competitive advantage over your rivals. You can also set up a payment analytics environment and gain valuable insights into customer behavior and possible payment bottlenecks in the system to continuously improve your offerings here.
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Arjun Vir Singh Efi Pylarinou Nicolas Pinto Spiros Margaris Paolo Sironi Richard Turrin Monica Jasuja