As an online merchant, have you heard the term “payment orchestration”? It would be unsurprising, as this concept has popped up all over the place recently in the payment processing realm. Yet, it’s not a new solution by any means. Vendo has been a payment orchestration provider for more than ten years.
In exploring payment orchestration, it’s helpful to look at a then-versus-now scenario. Traditionally, a merchant would partner with one payment provider that would handle all of the necessary steps in sales transactions. For example, that single payment provider would provide the merchant with the technology the merchant needed to be able to accept and process payments, then release funds to the merchant on an agreed-upon timeline.
With the expansion and acceleration of doing business digitally, it’s not as feasible for one payment provider to serve the merchant in a way that maximizes revenue. This is especially true for merchants categorized as “high-risk” who may encounter daily challenges, from chargebacks and higher payment processing fees.
Enter the payment orchestration platform (aka: gateway 2.0). This approach to payment processing takes the technical complexity out of merchant activities. A payment orchestration provider works behind-the-scenes to offer merchants key services, such as:
Additional options include gift card offers,, dynamic currency conversion, and ways to optimize fulfillment and delivery. The payment orchestration provider also works with multiple acquiring bank in order to increase approval ratios by finding the best routing between issuer and acquirer.,
Clearly there’s very little a payment orchestration platform cannot do.
Payment orchestration removes many of a merchant’s day-to-day challenges, which is a significant advantage over the competition. It serves as a platform that provides merchants with everything they need to be successful. Another benefit is that merchants can select which payment orchestration services they want to use. It is not an “all or nothing” approach; rather, it’s a journey.
For example, merchants might start with tokenization, then use increased revenue from that service to start adding on other services. They may see fraud reduction of 5% with one 3D secure provider but 15% reduction with another.
Larger merchants with tremendous volumes often have the budgetary bandwidth to start with all of the payment orchestration platform services. Smaller merchants can feel confident selecting the types of services that give them the best outcomes—based on their individual needs and goals, somewhat of an a la carte scenario.
While payment orchestration has existed for over a decade, it’s only recently been defined. Some experts attribute its recent popularity to a concerted marketing effort. Marketing or not, merchants have vast opportunities to expand their target audience, maximize revenue, and streamline operations by employing payment orchestration.
If you’re interested in learning more about payment orchestration and all of its benefits, please contact one of Vendo’s experts.
About Vendo: Vendo offers comprehensive payment processing services to e-commerce merchants, including those in high-risk industries. Our innovative, AI-powered tools offer merchants simple, secure, and seamless payment solutions, along with expert customer support from integration to end-user concerns. Our expert team works 24/7 to shape your vision into reality.