What is payment orchestration and how does it help your online business?

At first glance, making an online payment may seem like a simple process. However, behind each transaction, there is a complex mechanism that connects multiple technologies and actors in the payment system.

When we think of card payments, we usually assume that ecommerce simply connects to a single processor to complete the transactions. In reality, there is a more advanced way to manage payments: designing routes and making automated decisions about which processor to use in each case. This process is known as payment orchestration.

Next, we will explore in more detail what payment orchestration is and how it can benefit your online business.

What is payment orchestration?

Payment orchestration, also referred to as "smart routing", is a technology that automates and optimizes the transaction path during an online purchase, ensuring a smoother and more efficient process.

This system helps minimize processing errors, reduce costs, and improve the overall customer experience.

Instead of relying on a single processor, businesses can integrate multiple processors and configure smart routes that choose the best option based on factors such as payment method, customer location, or system availability.

Rather than relying on a single processor, businesses can use multiple processors and set up intelligent routing to automatically select the best option based on factors such as payment method, customer location, and system availability.

For instance, if you run an ecommerce business and a customer is making a purchase from France, payment orchestration can route the transaction to a local French processor, which may offer greater efficiency and cost savings.

In essence, payment orchestration is a system that connects multiple processors, optimizing the payment journey to ensure the most favorable outcome.

Why is it important for your online business?

If you manage an ecommerce, marketplace, or any other online business, you understand that a seamless payment experience is crucial for customer satisfaction. Payment orchestration can make a significant difference by offering the following benefits:

1. Higher payment approval rate
   ‍Minimize declined payments by automatically redirecting failed transactions to an alternative processor. This boosts the likelihood of successful payments, enhancing both your revenue and the customer experience.
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2. Reduction of operational costs
   ‍Payment processors charge fees for each transaction, but these fees can vary based on factors such as the processor, the country of issuance, or the card type.
   With payment orchestration, you can select the most cost-effective options, potentially saving up to 25% on transaction-related costs.
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3. Flexibility and scalability
   ‍In the digital world, system failures are inevitable. Relying on a single payment processor means that any technical issues can directly impact your business.
   With smart routing, if one processor fails, the payment is automatically redirected to another, increasing the chances of successful transactions. Moreover, payment orchestration makes it easier to expand into new markets by seamlessly integrating local processors and additional payment methods.
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4. Improves customer experience
   ‍A fast and seamless payment process is crucial for customer satisfaction. Payment orchestration streamlines transactions by eliminating obstacles such as delays or rejections, leading to a smoother and more enjoyable shopping experience.

How does payment orchestration work in practice?

To better understand how it works, let’s consider a practical example:

Imagine you have a customer in Mexico trying to pay with a credit card on your ecommerce site. If you rely on a single processor that, for some reason, cannot complete the transaction (perhaps due to specific configurations for cards from that region), the payment would be declined.

With a payment orchestration system, the transaction is automatically redirected to another processor that can handle it (for example, a local processor), preventing you from losing the sale.

Furthermore, if both processors are available, the orchestration system can select the one with the lowest fee, maximizing your profitability.

How to implement payment orchestration in your online business?

To implement payment orchestration, you need a specialized platform like Zru, which provides tools for configuring intelligent routing and managing payments seamlessly.

Advantages of using Zru:

• Payment aggregation:
  With Zru, you can easily connect to both global and local processors (such as Adyen, Stripe, or Worldpay) and integrate alternative payment methods (PayPal, Klarna, Apple Pay, etc) with just a few clicks.
• Centralized management:
  Manage all your payment operations from the Zru dashboard.
  You can create and manage orchestrations, configure payment screens, process refunds, create and send payment links, and download reconciliation data—all in one place.
• Simple integration:
  We provide plugins for popular CMS platforms like WordPress, Prestashop, and Bubble, enabling you to start processing payments in minutes.
  Additionally, connecting to our API is straightforward, thanks to our libraries and dedicated team support.

With Zru, you simplify payment complexities and boost you results, all with the help of our expert team.

Conclusion

It’s not just a technical tool, but a key strategy for your business.

Payment orchestration is more than just a technical solution; it’s a crucial strategy for optimizing payment management in any online business. By increasing approval rates, reducing costs, and enhancing the customer experience, its benefits are clear.

If you're ready to implement a payment orchestration platform, get in touch with us, and we’ll help you take the next step!