Payment Orchestration Overview

What is payment orchestration?

Payment orchestration consolidates complex payment setups involving multiple payment providers into a single, unified whole. Working with multiple PSPs means dealing with disparate APIs and data formats that are different for each provider. IXOPAY reduces this complexity by harmonizing all PSPs via a single, common API and unifying all transaction data in a single, uniform format for all providers.

A payment orchestration platform acts as a single command and control center for all payments processes.

How it Works

The IXOPAY Payment Orchestration Platform takes on the role of conductor, ensuring that all aspects of your payments are in harmony. The IXOPAY Payment Orchestration Platform depicts the entire transaction lifecycle from checkout to settlement and reconciliation, as well as interfacing with external systems.

Checkout

This starts with a consumer choosing a payment method and entering their payment information at checkout. Sensitive payment data is securely transferred to IXOPAY to be stored and tokenized. Stored payment methods can be reused with any connected PSP. A single API is used to submit transactions, eliminating the need to integrate and maintain multiple different APIs for each PSP.

Risk Analysis

Prior to processing, the transaction can be analyzed for indication of fraud using IXOPAY's in-built risk engine and/or third party fraud and risk providers.

Routing

IXOPAY forwards the transaction to the desired PSP for processing based on your routing rules. For example, a transaction involving a credit card issued in France can be routed to a PSP with acquiring capabilities in France, increasing the likelihood of the transaction being approved.

Inform Customer

If the transaction is declined, or the PSP is unavailable, the transaction can automatically be retried with another PSP. If the transaction was declined (e.g. the consumer has reached their credit limit), the consumer can attempt to complete the payment with a different payment method.

Trigger Backend Processes

If a transaction is successful, further steps need to be taken: goods need to be prepared for delivery, subscriptions need to be activated etc. Transaction data can be exported to external systems (order management, CRM) to trigger these downstream processes. The same data format is used to export transaction data irrespective of the PSP, reducing the number of different interfaces and data formats that need to be handled to one.

Reconciliation and Settlement

Once a merchant receives their funds from the PSP, IXOPAY checks that the correct amount has been deposited and that fees have been applied correctly. Any discrepancies are flagged and conflicts can be resolved manually. Automating the settlement and reconciliation process streamlines an otherwise laborious and time-consuming task.

Transfer to External Systems

Once the settlement and reconciliation processes are complete, transaction data can be exported from IXOPAY, either as reports or for import into external systems, e.g. for accounting purposes. This process is unified across all PSPs, using the same data format for all connected PSPs.

Who benefits from payment orchestration?

Our Enterprise payment orchestration benefits large enterprise merchants with complex payments setups involving multiple payment service providers (PSPs). In particular, the Enterprise solutions caters to merchants who:

  • are active globally or in multiple regions and need to cater to local consumer preferences
  • are looking to quickly expand into new markets and cater to local payment preferences
  • require the ability to easily add or remove individual PSPs from their payment stack, and thus need to avoid vendor lock-in
  • need to offer a wide range of local and international payment options via multiple PSPs
  • require fallback options for processing payments
  • need to consolidate transaction data and earnings across multiple regions
  • want to reduce the complexity and overheads that comes with maintaining multiple PSP integrations

If your requirements are less complex, e.g. you only use a small number of PSPs, take a look at our standalone products or the Starter and Growth packages.

How can I benefit from payment orchestration?

Payment orchestration caters to the needs of merchants who rely on a large number of PSPs. Key reasons for integrating multiple PSPs include:

Easier Integration with PSPs

All PSPs are integrated via a single API. The payment orchestrator maintains this interface, meaning there are no overheads on the part of merchants when individual PSPs change their interface.

Faster Time-to-Market

Popular PSPs are ready to use immediately and connecting to a new provider takes just minutes. Easily switch or add PSPs as market demands change. New integrations are delivered far quicker than by in-house teams.

Focus on Your Business

Focus on what you do best, and leave payment integrations to the experts. Increase efficiency and eliminate costly overheads that come with maintaining and updating payment integrations.

Higher Conversion Rates

Offering consumers their desired payment method matters. A significant number of consumers abandon their purchase if their preferred option is unavailable (e.g. BNPL or local payment methods).

Higher Authorization Rates

Routing transactions to PSPs with local acquiring capabilities typically results in higher authorization rates. Depending on circumstances, increases in the authorization rate can reach double digits.

Increased Operational Efficiency

Automate time-consuming tasks and concentrate on your core business. With only a single interface to maintain, the effort required to process transaction data reduces accounting overheads significantly.

Consolidated Reporting and Analytics

Analyze transactions across multiple PSPs in a single system and create reports containing any of this data. The payment orchestration platform unifies transaction data across all PSPs.

Easier Integration with IT Systems

A payment orchestration platform uses a single format to transfer transaction data for all PSPs to systems for order management, customer relationship management, shipping, accounting etc.

Recover Sales with Fallback Options

Automatically route transaction to an alternative provider if the merchant’s preferred PSP is temporarily unavailable. Merchants can also easily pivot to an alternative provider if their PSP goes out of business or is acquired by a new owner with different priorities.

Don't Need the Full Package?

If you do not need the full capabilities of IXOPAY's powerful payment orchestration platform, you can also acquire individual modules.

Want to know more?

If you would like to learn more about IXOPAY and how a payment orchestration platform can help your business consolidate and streamline your payments processes, get in contact with us! Our sales team will be happy to advise you.

Get in touch!