As a merchant of record your core focus is on delivering an exceptional customer experience while optimizing ROI. Payments Orchestration allows you to do just that by optimizing each transaction for revenue, cost, and customer experience. Allowing you to focus on core business functions while relieving developmental burdens. Aquire further ROI by leveraging Payments Orchestration to break into new markets with the correct mix of payment services; accelerating your organizations overall growth.
Ready to watch more? View the entire Business Models series here!
Rough transcript of Business Models: Merchants of Record
Daniel Scagnell: Hi, my name is Daniel Scagnelli, I'm senior vice president of business operations at Spreedly. And I wanted to share some of my thoughts on the benefits of payments orchestration, specifically for merchants of record. There are many significant benefits of payments orchestration for merchants. However, I want to focus our discussion on a few of the most impactful growth, focus, market expansion, and optimization. All of which will result in better outcomes for your business and a better experience for your customers.
So let's talk about growth a little bit. Hyper merchants like SeatGeek and Rappi focus on building a great customer experience and optimizing revenue from each transaction. They don't focus on managing complex payments infrastructure, worrying about PCI compliance and industry regulations like 3DS. Instead, they're able to focus their teams on their core competencies and building the best product that drives the most value for their business and for their customers without having to worry about payments.
And they do that through payments orchestration, so with a robust payments orchestration solution, you can do that too, allowing your teams to focus on what they do best, focusing developer resources away from building PCI compliance and multi-gateway connections. Instead, allowing them to enable your business in empowering your growth.
Maybe that's growing faster by entering new markets. Perhaps it's acquiring more consumers by offering the right mix of payment services, maximizing revenue by optimizing each transaction, whether that's around cost, revenue, geo, or purely the customer experience. There are a variety of ways that you can leverage payments orchestration to drive that optimization and improve those outcomes.
So let's drill down a little bit on each of those key areas. The first being, keeping your development teams focused on differentiation, or as I said earlier, keeping your teams focused on your core competencies. You do what you do best and let others take care of the other things that aren't at that focus for you, from a core competency standpoint.
So when you think about it, you've got an ever growing backlog of maintenance and technical debt. You've got product enhancements and new product releases that your teams are driving towards. And you've defined that ROI for your business. Your team shouldn't develop your unique payments infrastructure from the ground up. Otherwise, it takes away from those focus areas, takes away from your ability to chip away at that technical debt and bring value to your business and your customers in new ways.
Instead, you want them building that value. You want them not worried about maintaining regulatory compliance and sophisticated payment systems. And instead, focusing on what's going to drive growth for your business. Spreedly helps a tremendous amount of merchants, hundreds across the globe in hundreds of countries, minimize PCI compliance scope, reduce the impact burden of managing regulatory implications like 3DS, for example, and other security and regulatory burdens.
Our payments orchestration platform lets you rapidly add new payment service connections via one single API. You're able to outsource that burden, those regulatory issues, security worries like PCI and SCA and PSD2 to our experts. And we're able then to connect you to virtually any payment service via single API rather than building complex integrations yourself.
So you can leverage that experience to also gain insight into billions of transactions of data that Spreedly has, that we can use to help you enhance your payment strategy going forward. So benefit from the many and allow yourself to focus on what you do best. So one of the other areas we want to drill down into is growing your business.
Specifically, let's focus on growing your business in new markets, right? Every market has a ceiling. You have to continue to grow. If you want new potential customers to come into your business, you're going to have to expand. And as you expand into new markets, you want those customers to be able to transact with you seamlessly and efficiently. High decline rates are a large problem for merchants.
The inability to support local payment methods is another barrier to access and to acquiring new customers in new markets, not being able to support new payment systems in those markets. Perhaps, it's a new gateway or processor that's specific to that region that you need to support. That's yet another development item in your backlog. Having to manage these things can become complex really fast and knowing what to focus on first can be the difference between a successful launch and a disaster in a new market.
Spreedly's global ecosystem connects you to virtually any payment gateway, fraud or other service. You're able to leverage our platforms connections to successfully transact with your customers around the world. You can enter new markets, accept local payment methods faster and boost a global revenue with enhanced authorization rates in those international markets by focusing on the right PSP through our portfolio that you can work with, to drive that value in that market.
You can improve your checkout experience with key payments functionality, like best in market fraud tools. So there's a lot of benefit in a seamless, single point of entry into multiple new markets. And again, back to our first point, it allows you to focus on what you do best. So the last point here for us is optimizing every transaction to drive more revenue, a great payments experience, lets you capture immediate revenue and also future purchases or subscriptions, but false declines and lowered authorization rates eat into your revenue and it disrupts your customer experience.
It causes operational overhead for your support teams and fires that you're constantly having to chase and put out. Spreedly Smart Routing capabilities ensures that transactions get routed to the right service at the right time to optimize your success rates and transaction costs. Our routing systems are built on data that processes 40 billion in GMV per year.
So you can depend on the intelligence in our platform and benefit from what others have done, to maximize your chances for success. So again, we can drill in, boost those success rates and revenue with that technology that orchestrates each transaction. And help you avoid fraud losses by leveraging the best fraud tools for your market needs. Keeping customers transacting by automatically updating store credentials via account updater and network tokenization.
There have a lot of benefits that we can drive. And again, tying back to that first point, these are less things that you have to focus your team on building net new, so that you can drive focus around your core competencies in growing your business with what you do best.
So thanks for letting me share my thoughts with you today. It's been a pleasure. There are a lot of benefits of payments orchestration. I hope this was helpful and that you all walked away with something valuable that you can apply to your business. Thank you.
Click here to learn more about how Payments Orchestration can benefit Merchants of Record!