Monday, May 16, 2022

Comprehensive Guide on Payments Orchestration Platform – All You Need to Know

A payments orchestration platform helps in integrating and managing payment processors and payment service providers. It is responsible for end-to-end payments processing, right from authorizing a payment, to routing the transition, and settlement.

Business owners can use a payment orchestration platform to manage the entire payment processing, routing, settlement, and reporting. It can be done using a single dashboard that helps to streamline the entire process.

How Does it Work? 

A payment orchestration platform uses a series of specified steps when handling transactions between various parties.

Here’s how it works.

  1. Once the customer has initiated a transaction from the checkout page using a payment option, the information is shared with the payment gateway
  2. The transaction information shared by the customer is encrypted by the payment gateway before being shared with the acquiring bank and payment processor
  3. The information is verified by both the acquiring and issuing bank before authorizing the payment
  4. Once the payment status is received (accepted/declined) the information is shared by the acquiring bank back to the payment gateway which conveys the information to the merchant.
  5. In case the transaction has been approved, funds are transferred to the merchant account and the transaction is deemed complete.

Apart from this, all settlements, billing, refunds, and account reporting are also taken care of by the payment orchestration platform. All the information can be viewed by the merchant from a single unified dashboard.

Benefits of a payment orchestration platform

Now that you know how a payment orchestration platform works, let’s have a look at a few of its most prominent benefits!

Work with Multiple Service Providers

It removes the need to have a third-party integration. Merchants can work with multiple payment service providers simultaneously.

Add Multiple Payment Modes

Cater to individual customer preferences as you can have tie-ups with multiple service providers. It also offers a host of payment methods allowing the customer to choose a mode of payment as per their convenience.

Easier Management 

Having one unified dashboard to handle all your payment service providers comes in handy when you are scaling your business. Moreover, the ability to provide multiple payment options allows for more customer acquisition and retention.

Increases the number of successful transactions

A payment orchestration platform works by opting for the best performing processor so that there are no lags or delays in transactions, and each transaction can be handled as efficiently as possible.

Offers a Great User Experience

Since there are next to no transaction failures, the user experience is enhanced resulting in repeat visits and purchases by the customers. This can go a long way in building positive relationships and brand value with customers over the longer run.

Payments orchestration platform is a vital tool for online business owners if they want to offer a superior experience to their customers. Additionally, it helps in simplifying the entire process of keeping a tab on the transactions and ensuring that everything functions as intended and business can be carried out as efficiently as possible.

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