Why Payment Orchestration Providers are the Next Step in the Evolution of the Payment Market

Merchants spend countless hours optimizing their eCommerce presence—for a very good reason. Online businesses need all their processes running smoothly in order to achieve harmony.

Yet in the pursuit of eCommerce happiness, they can forget a key ingredient for growth and revenue generation – payments. Although early on, merchants can be forgiven for neglecting to manage their payments, here is the reality:

The Payments Market is Booming

Modern payment providers can connect businesses via a plethora of banks and payment methods, freeing them from the full load of relationship management. Moreover, new players now offer innovative, easy-to-use payment tools, promising to take all the payment challenges off merchants’ shoulders.

With so much development, it can be dangerously easy for merchants to believe that it takes minimal effort to establish a simple payment setup.

“Just find the payment partner you need, and you are basically done taking care of this part of your business.”

This statement could not be further from the truth.

Payment Complexity Can (and will!) Snowball

Large international merchants will be the first ones to tell you that the more your business grows, the more intimate your relationship with payments becomes.

Nowadays, to initially get things up and running, you as a merchant would probably connect to a payment service provider that has just enough payment methods and acquirers to cover your needs. Maybe this PSP would even provide you with risk management tools along with some analytics or payment optimization capabilities.

This seems great, until something goes terribly wrong.

What if your payment provider stops supporting the exact payment method that is popular with your customers? What if, during the peak hours your payment provider suffers a system outage resulting in serious revenue loss for your business? Can you actually control your payments? Will your PSP cover the regions where you plan to expand?

Alone, these questions can cause quite a headache and hold on, we haven’t even considered all the requirements for regulations and compliance. Hoping to solve these issues once and for all, you connect to one or several back-up PSPs.

You link to the provider that promised you a future-proof expansion strategy. As you grow, you’ll need to integrate a more powerful risk protection solution among other great tools.

Of course, you’re thinking of your customers too, connecting to the hottest new payment method: the one that your payment providers have yet to implement. This solution gives you the feeling that, finally, you are in charge of your payments.

Sorry, it’s not that simple and the mess begins before you even notice.

You employ a growing team of technical experts who support your complex payment structure. Engineering efforts, time and money begin to pile on. Before you know it, you’ve been dragged away from your core business in your attempts to unravel the knot of payment complexity that you’ve created.

When did payments become this complex?

The Growing Need for Payment Orchestration

Fortunately, there is one constant in the middle of all this chaos: businesses still demand payment solutions that are secure, manageable, simple and cost-efficient.

The payments market is well aware of this demand, giving merchants more choices in the form of better functionality and new innovations. Yet, to this day, there is no single PSP that can alleviate all the payment pains for every merchant.

No matter how excellent the services of a payment provider are, each online business requires its own, bespoke payment solution. This desire for a tailor-made solution is the root of the payment complexity problem. It doesn’t exist just because of an immature market or a lack of innovation. Rather, payment complexity stems from merchants realizing that they need to find new payment partners to get the individual solutions that they’re looking for.

The holy grail of a successful eCommerce payment engine is therefore not necessarily a single PSP. The secret lies in having a powerful independent orchestration tool that can harmoniously combine your payment processes and connections while tackling all your current and future payment problems.

Enter the Payment Orchestration Provider (POP)

A POP is cloud-based software that grants businesses the control they need over their payment experience. It lets merchants flexibly expand to new markets and optimize their payment experience while reducing technical and operational costs.

POPs provide a holistic payment infrastructure as a service by delivering a complete aggregation of the payment market along with user-friendly payment orchestration applications. A POP is modular middleware on top of existing payment infrastructures, helping merchants streamline and scale their payment setups.

In short, a POP allows merchants to:

  • Flexibly adapt to market changes, innovations, and business requirements
  • Scale quickly into new markets to spur global business growth
  • Connect to any global or local payment method or provider in an independent manner
  • Eliminate the operational complexity of integrating and maintaining payment infrastructure
  • Remove or reduce lock-ins induced by payment providers
  • Test and compare any payment solution in their own environment
  • Have full control over the payment performance through one portal
  • Manage and optimize transaction costs
  • Deliver a seamless cross-provider payment experience to your end-customers

As a single touchpoint for individual merchant needs, POPs are the disrupting force turning the page on payment evolution. The next chapter in payments is still to be written but with the help of POPs we can provider a teaser: it’ll be called simplicity.