• Product Reviews
• 02.03.2022 06:54 am
• IXOPAY - Scale Your Payments Globally

Payments orchestration platforms (POPs), or payments orchestration level (POL), are innovational digital payment tools, which simplify the integration processes between a company’s website and payment service providers (PSPs). In other words, payments orchestration platforms allow one website to connect multiple payment processors at the same time, thus leading to increased geographical coverage and better customer experience. 

As a payment orchestration layer acts as a core of a payment system, we are going to analyze the working process of payment orchestration platforms using IXOPAY as an example. We will have a closer look at features of this Platform-as-a-Service (PaaS), the architecture of the system, and how payment orchestration platforms can benefit e-commerce.

What is payment orchestration exactly?

A payment orchestration platform is a software level that combines and manages several payment processors and multiple service providers, thus automating the whole online payment process. The automation includes payment authorization, transaction routing, and settlements. By consolidating payment service providers and payment methods, such as Visa, PayPal, Mastercard, and American Express, the payment orchestration platform helps e-commerce merchants with avoiding numerous accounts. 

As a result, there is a fully integrated website, convenient to use, which lets businesses manage all PSPs within a single web page. Moreover, thanks to payment orchestration platforms, executives deal with a fewer amount of third-party service providers, and the amount of failed transactions significantly fall.

The working process of payments orchestration

As payment orchestration chooses the best route to complete the payment processes for you, the system avoids potential failures and reduces the number of false online payment failure messages. According to the data provided by Finance Magnets, online merchants lose 62% of customers due to failed transactions. By adopting payments orchestration platforms, e-commerce businesses will consequently increase their sales and, of course, customer satisfaction levels across the globe. 

Although some POPs may cover different payment adapters, e-commerce plugins, and risk management adapters, there is a similar payment pattern. Let's see how payments orchestration works:

1. On your checkout page, the consumer begins the payment and selects a payment method from your list. 
2. Data from the cardholder goes to the payment gateway. 
3. In addition, the payment gateway provides the payment data to the acquiring bank and processor. 
4. The purchasing and issuing banks then interact to approve the payment. 
5. The acquirer then sends the authorized or denied payment notification to the payment gateway, and eventually to the merchant. To reduce misleading payment failure alerts, payments orchestration automatically routes transactions to another payment processor. 
6. The payment will be authorized if the other payment processor works. 

In addition to payments, the payments orchestration platform supports payment settlements, billing, and payment reporting.

IXOPAY as a payments orchestration platform 

Transactions can now be handled by many payment service providers. After receiving credentials from a service provider, firms can quickly configure the adapter's technical settings and start using it without any more development work. This allows them to swiftly add new service providers to process transactions, extending multi-acquirer and multi-processor approaches and tapping into new markets. 

The payment adapters do more than just handle credit card and bank transfers. Many of the IXOPAY’s adapters provide payouts and other alternative payment options, which are important in many locations. Moreover, it allows increasing conversions without raising technical or organizational efforts by incorporating local payment alternatives. 

5 reasons why you should have payments orchestration

1. Apart from facilitating integration, payment orchestration platforms adapt to client payment preferences.
2. POPs make e-commerce businesses grow faster by providing access to a wide range of payment providers.
3. As the number of authorized payments rises, e-commerce businesses won’t lose sales due to payment technology issues.
4. As the company expands, payment orchestration becomes the most cost-effective alternative.
5. As managing PCI compliance and other regulations is mandatory for PSPs, payments orchestration provides payment security and compliance.

Start using payments orchestration

Now that you're aware of the benefits of connecting with a payments orchestration platform, it's time to optimize your store's performance. Utilizing a platform, like IXOPAY, is an excellent place to begin. You may define payment processing rules to avoid missed purchases and to enable the acceptance of additional payment methods. 

Additionally, in the event of a technical failure, you can automatically route transactions to the provider with the highest performance. This will result in fewer disruptions to the payment flow and a smooth payment experience for your consumers.