Many eCommerce providers today rely on a payment orchestration platform (POP). This tool connects the retailer’s website with a payment service provider and simplifies the integration processes. With the use of a POP, a website can offer multiple payment options to consumers, allowing the company to expand to new markets and provide an improved customer experience. How does this work, and what benefits will a retailer see with the use of the platform?
Understanding Payment Orchestration
This platform is a program that brings together payment processors and service providers under one umbrella, automating online payments in the process. The program handles payment authorizations, routes transactions, and completes settlements. Retailers and other eCommerce providers find they can consolidate their payment methods and service providers into one account. They spend less time dealing with third-party providers and more time meeting the needs of customers. In addition, they deal with fewer failed transactions. BlueSnap is one payment orchestration platform every eCommerce provider should consider.
How It Works
When a customer completes an online transaction, the POP determines the best way to complete the payment process. This helps to avoid potential failures while minimizing false online payment failure messages. Online eCommerce providers lose over 60 percent of customers thanks to failed transactions. Using a POP boosts sales and customer satisfaction levels.
Although differences will be seen between payment orchestration platforms, all platforms use a similar payment pattern. When a customer wants to purchase an item, they choose a payment method. Information from the customer goes to the payment platform, which then sends this data to the appropriate bank and processor. The bank of the purchaser interacts with the bank of the issuer to approve or deny the payment. The payment gateway receives a notification saying whether the payment has been approved or denied before sharing this information with the merchant.
If a payment is denied, the POP sends the transaction to a different payment processor. The payment may then go through, and the customer won’t receive a payment failure alert. The payment orchestration platform also handles billing, payment settlements, and reporting.
Benefits of Using a Payment Orchestration Platform
Each payment orchestration platform can adapt to the payment preferences of the client. The business grows faster when using a POP because consumers have more payment options. They can choose which best meets their needs at the time of purchase. Authorized payments rise when using a platform of this type, so the business loses fewer sales because of issues with payment technology.
As a company gets bigger, it will find a POP is very cost-effective. They won’t need to worry about security and compliance. The POP handles this for them. This is one less thing the business owner must monitor, which is greatly appreciated. They can turn their focus to other tasks that benefit customers and increase sales.
Learn more about payment orchestration platforms today. Many business owners find they can avoid missed purchases while better meeting the needs of the clients with the help of a POP. The use of this type of platform is an excellent way to grow the business and increase customer loyalty with little hassle.