{"id":17464,"date":"2022-11-22T09:47:08","date_gmt":"2022-11-22T08:47:08","guid":{"rendered":"https:\/\/www.wannme.com\/?p=17464"},"modified":"2024-07-29T09:57:32","modified_gmt":"2024-07-29T07:57:32","slug":"what-is-payment-orchestration","status":"publish","type":"post","link":"https:\/\/www.wannme.com\/en\/what-is-payment-orchestration\/","title":{"rendered":"What is Payment Orchestration"},"content":{"rendered":"

Payment Orchestration: The Way to Grow Your Business<\/strong><\/h2>\n

The world of payments is becoming more and more complex. New payment methods are emerging, new channels are opening for customers to start their purchases, and new payment services are adding value to transactions, such as identity verification, tokenization, and digital signatures. All this is driven by new and demanding user preferences.<\/p>\n

To ensure that customers choose you over your competitors, you must guarantee an optimal buying experience, both in-store and online.<\/p>\n

In this blog, we\u2019ll discuss how payment orchestration can optimize your business. What does it involve? Essentially, it means adding an intermediary layer between your business and payment service providers (PSPs). This way, you optimize the purchasing experience for both the end customer and your business, as payments can be routed through processors with lower costs, for example.<\/p>\n

How Payment Orchestration Works<\/strong><\/h2>\n

Orchestration is an intermediate step during payment processing, occurring between the PSPs and the digital commerce.<\/p>\n

Payment orchestration consolidates multiple providers for various payment methods or types into a single platform: Bizum, card payments (VISA, Mastercard, Multibanco, etc.), bank transfers, SEPA direct debits, etc. This makes managing a company’s or e-commerce\u2019s collections more efficient, optimal, and secure without requiring numerous separate integrations.<\/p>\n

Example:<\/strong><\/h2>\n

In our e-commerce, we have a customer from Portugal and another from Spain. Using payment orchestration, we offer each customer payment methods that suit their specific needs. The Spanish customer prefers card payments, VISA, and Bizum, while the Portuguese customer prefers Multibanco and PayPal. Each customer\u2019s payment process is tailored accordingly.<\/p>\n

How is the payment method or type chosen for each customer? That\u2019s the role of the payment orchestrator.<\/strong><\/p>\n

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  1. The consumer starts the payment process.<\/li>\n
  2. The payment orchestrator offers one or more payment methods, and the customer chooses the one that best suits their case.<\/li>\n
  3. Encrypted data is sent to the payment gateway and then to the bank.<\/li>\n
  4. The bank approves or rejects the payment.<\/li>\n
  5. If rejected, the orchestrator automatically retries the payment using another method or type to prevent the customer from abandoning the purchase.<\/li>\n<\/ol>\n

    Payment orchestration aims to find the best payment method\/type and provider for the transaction, with the best conditions and\/or added-value services (digital signatures, identity verification, escrow accounts, etc.). You only use what you need at the right moment.<\/p>\n

    Benefits for E-Commerce: Payment Guarantees<\/strong><\/h2>\n

    An orchestra conductor isn\u2019t flustered by more instruments; they simply organize them to create a beautiful melody. Similarly, payment orchestrators manage the proliferation of payment options, turning it into an opportunity rather than a problem.<\/p>\n

    The benefits of payment orchestration for your e-commerce are:<\/p>\n