Digital payment transactions surpassed $1 trillion in 2023, making it essential for businesses to find ways to optimize them to help grow revenue. If you want to get the most out of digital payments and their ability to lower costs, boost sales and improve your bottom line in 2024, next-generation payment orchestration is the single-most important payment trend to leverage in the new year.
What Is Next-Generation Payment Orchestration?
Next-gen payment orchestration is a modern, more comprehensive version of payment orchestration that allows businesses to have one relationship with one vendor that includes payment orchestration and payment processing without sacrificing payment optimization. The logic and payment capabilities are fully controlled by a single platform that actually moves the money, helping to reduce operational and technical debt while increasing authorization rates and reducing costs.
This differs from traditional payment orchestration, which functions solely as middleware that manages multiple payment services. The business still must work with multiple getaways and vendors but then uses the payment orchestration software to control them.
With the contemporary approach to payment orchestration, companies can be more strategic with their payments by choosing a single platform that brings together the payment processing, all payment use cases, geographies, payment optimization and additional capabilities in a single integration and a single account. It gives businesses the ability to activate online and mobile checkout, new payment types and currencies, subscriptions, AR automation, fraud prevention, embedded payments, etc., without having to vet, implement and integrate yet another vendor.
Why Payment Orchestration Will Rule 2024
What makes next-generation payment orchestration so important in 2024 is its flexibility. Since functionality can be turned on and off without the need for maintenance across multiple providers, businesses can be considerably more agile in their payment strategies and in using payments to support their goals.
Want to accept payments in a new geography? Payment orchestration allows you to add the currencies and preferred payment methods shoppers want in that region.
Have you been invoicing wholesalers and now want to also sell direct to customers online? Payment orchestration can support both of those use cases without the need of an additional solution.
Have you seen a rise in fraud related to a specific business line? Again, with one modern payment orchestration platform, you can tighten your fraud prevention for specific products or geographies without having to find and code to an additional solution.
Of course, payment orchestration is not the only payment trend you can expect to see in 2024, but payment orchestration is a key enabler of many of them. Whether you’re a software platform expanding your embedded payments offering globally or a B2B company looking to digitalize your invoicing practices, modern payment orchestration makes it all possible.
The Benefits of Modern Payment Orchestration
By eliminating the need for businesses to work with multiple payment solutions, payment orchestration creates several efficiencies that can impact your bottom line:
- Reducing technical debt: According to a BlueSnap survey, 80% of IT professionals use more than one payment gateway to collect payments. Payment orchestration provides organizations with a single platform that easily accommodates the various payment needs, relieving stress on your development team and allowing them to focus on more value-added work.
- Unified global reporting: Every payment solution has its own approach to reporting. One might report card authorizations, for example, while another reports card declines. Working with multiple vendors makes reconciliation and tax compliance and optimization inordinately time-consuming. But consolidating to a single payment orchestration platform that offers unified global reporting and real-time payment data can save you time while also making it easier to plan and make business decisions.
- Payment optimization to increase sales and reduce costs: Modern payment orchestration is designed to bring everything a company needs for payments together so they can create tailored checkout experiences for customers without heavily investing in additional technology. It allows business to accept local and alternative payment methods to increase sales by decreasing checkout abandonment, it uses tokenization, account updater, failover and Intelligent Payment Routing to optimize payments and improve authorization rates, and it connects your single account to an extensive network of banks with multiple options in each region where you sell to increase the likelihood of transaction approvals – and at the lowest cost possible.
By embracing next-generation payment orchestration, organizations can stay on top of and capitalize on the payment trends of 2024. With a single platform, businesses can centralize all the components of payment processing and customize them to their specific needs.