Speed and convenience of payment when using digital services play a key role in the user experience. However, behind the apparent simplicity of one click “pay” lies a complex technological process. To the rescue comes the concept of payment orchestration, which is the key to efficient and flexible payment processing. But what is payment orchestration, and how does it work? In this article, we offer you to understand these questions.
What Is a Payment Orchestration Platform?
A payment orchestration platform is a set of technical tools and software designed to manage payment flows at a technical level. That is, thanks to the settings system, you can set the necessary parameters for your processing and follow them in practice.
For example, using the orchestration system, you can set parameters for each payment system you cooperate with. One may be stronger in the European region, and another in Asia. At the same time, the same payment system may behave differently from country to country or even by types of payment cards or issuing banks. If we talk about card acquiring, such settings are indispensable, and third-party software can be useful here.
The main advantages of using a technical aggregator include:
- Strong technology and development, behind which there are many years of experience. If you approach the choice of a partner correctly, then the chance of acquiring an experienced aggregator is quite high. This means that you don’t have to test much, most of the settings are already done and you just need to add them to your site.
- Integration speed. Payment aggregators not only provide technical processing paths but also often have already made many integrations with the necessary payment systems that you, as a merchant, can use right away. This reduces the launch time and saves you from technical work if, for example, you do not have your own development team.
- Convenient ready-made admin panel. This can be a decisive factor for many merchants because the convenience of managing payment systems plays a serious role in daily work. If switching payment systems or changing limits requires a significant set of complex manipulations, then your adaptability and reaction to market storms can be very low.
- Buying or renting a ready-made payment orchestration system is a good option if you are looking for an opportunity to save money and get the most with a minimum of effort. But the most important thing in this matter is to pay due attention to the choice of this system and not to miscalculate. The most popular way of cooperating with aggregators is renting or partnering with a monthly payment or payment for the number of transactions that go through the aggregator’s system. This allows you to test the system at a relatively low cost, understand whether it suits your business, and change it if necessary. At the same time, you will have access to all updates and new integrations of the system, which are carried out in parallel.
Development of a Platform For Payment Orchestration
In the conditions of constant competition, merchants often come to the conclusion that it will be more profitable to develop their own aggregator for personal needs than to cooperate with a third-party provider and constantly depend on it. Despite a number of advantages of cooperation with a partner aggregator, there are also disadvantages. And the most significant of them can be called a full dependence on a third-party system at any time. In case of technical failures, DDoS attacks, or other internal infrastructure problems of the aggregator, it is the merchants who will be the first to feel this blow. Of course, it can be said that their own software can also be attacked, and it also has the property of failing.
But the main difference between a proprietary system and a purchased one, in this case, is that the proprietary system is always at hand and the merchant has full influence on it. This means that it will be possible to respond to the situation faster and the merchant’s team has all the necessary access.
Actually, having weighed all the pros and cons, how to decide on developing your own aggregator?
It is recommended to ask yourself the following questions:
- Do you have a large volume of transactions and are there any difficulties in managing it at the moment? If so, what are they, and is it possible to solve them without damaging the business right now.
- Are you ready to operate another full-fledged business project? After all, an aggregator, even if it is owned by a business, is a separate product. It will need a manager, product managers, a solid development and support team. Fitting all this into existing business processes can be difficult.
- Do you have the potential to obtain a suitable PCI DSS certificate and create a strong cybersecurity infrastructure? This is a separate issue that requires special attention since the system must be stable for external threats.
- Do you have the competencies in developing similar products or quick access to competent people in this area?
Using a third-party system is great for small companies or startups that want to test markets without complex development and large investments. And already at the stage of serious operation and thorough coverage of the audience, you can think about backing up a third-party system of your own and devote time to optimizing payment processes at a higher level.
To Conclude!
Payment orchestration systems are becoming an integral part of modern e-commerce. Thanks to them, businesses get the opportunity to flexibly customize the payment processing process, connect new providers, and quickly respond to technical or market changes. Understanding how payment orchestration works allows you to take a fresh look at the internal structure of online payments and appreciate the importance of properly organizing the payment infrastructure. If you are looking for a reliable payment orchestration provider, we recommend paying attention to Tranzzo.
