Webinar Recap: The ROI of Payments Orchestration - Unleashing Efficiency and Resilience in Modern Payment Systems

Businesses are increasingly turning to payments orchestration to streamline operations, enhance customer experiences, and boost profitability. This blog explores insights from our recent webinar featuring Adam Vissing, Vice President of Global Enterprise Sales at IXOPAY, and Ryan Lewis, Senior Product Manager at IXOPAY, who discussed the intricacies and benefits of payments orchestration.

Payments orchestration is a strategic approach that allows businesses to manage multiple payment providers through a single platform–unlike traditional payment processing, which often ties merchants to a single provider. This approach unbundles the payment process, offering flexibility, scalability, and resilience. As Adam Vissing noted, “Orchestration is simply the unbundling of payments. This approach allows merchants to achieve a much higher degree of agility in their business.”

Managing multiple payment service providers (PSPs) can be challenging, especially as businesses expand. During the webinar, many attendees indicated that they are already using multiple payment providers, highlighting the need for a more efficient way to manage these relationships. Ryan Lewis emphasized the importance of planning early for payments orchestration as businesses grow, noting that it becomes crucial as complexity increases.

Payments orchestration and payments optimization are often confused but refer to different concepts. Orchestration is the platform that provides tools to manage and streamline payment processes, while optimization is the ongoing effort to improve these processes. Adam explained, “Optimization is an aim, whereas orchestration is the toolbox that enables you to optimize different aspects of your payments processing.”

One key benefit of payments orchestration is improved transaction processing times and reduced payment failures. By integrating multiple payment providers into a single platform, businesses can use strategies like automated retries (cascading) to recover transactions lost due to technical failures or soft declines. Data visibility and analytics are crucial in this process, as Adam highlighted during the webinar.

Choosing the right payment orchestration platform is critical. Adam and Ryan both stressed the importance of thoroughly understanding your current payment processes, costs, and internal dependencies before selecting a platform. This understanding will help ensure that the platform aligns with your business needs and future goals.

Implementing a payments orchestration platform can be complex, particularly for large businesses. Adam recommended a phased approach to implementation, gradually shifting volume to the orchestration platform as confidence in its capabilities grows. While there may be concerns about added costs, careful evaluation often justifies the investment due to the efficiencies and cost savings orchestration can bring.

When considering payments orchestration, organizations often debate whether to build in-house or buy a ready-made solution. This decision hinges on factors like in-house capabilities, total cost of ownership, and opportunity costs. Building in-house may seem attractive, but the benefits of a pre-built platform, like IXOPAY’s orchestration solution, often outweigh the costs, offering faster time-to-market, lower operational expenses, and ongoing enhancements driven by a broader client base.

Payments orchestration can significantly reduce operational expenses through checkout optimization, smart routing, fraud management, settlement consolidation, and rapid integration of new payment methods. Even small improvements in authorization rates or payment fees can have a substantial financial impact.

Payments orchestration is not just a trend but a critical strategy for businesses looking to optimize payment processes, enhance customer experiences, and improve profitability. Understanding the fundamentals, selecting the right platform, and strategically implementing payments orchestration can unlock significant value and yield a strong return on investment.

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