Payments have undergone an incredible transformation in recent years.
Yet, all good things come at a cost.
What once was a fairly straightforward practice of handing over cash in exchange for a product has become an increasingly complex and digitally-centered process.
Digital payments come with a vast array of benefits, with one of the biggest being the ability to provide customers with their preferred payment methods.
To keep the financial information of customers safe, merchants and other businesses must meet an ever-growing pool of regulatory requirements surrounding digital payments.
However, these requirements can be expensive and result in overuse or even total depletion of resources.
For merchants and merchant aggregators to meet the challenge of compliance, a comprehensive payments orchestration solution is needed. With payments orchestration, businesses can reserve more of their resources while also reducing both compliance costs and development burdens.
To better grasp the complexity of this issue, let’s first examine how payments, development, and regulatory compliance impact one another.
The Relationship Between Payments, Development, & Compliance
Payments of all kinds deal with sensitive financial information of both businesses and customers.
This makes it vital for businesses accepting and processing payments to put in the right developmental efforts to not only ensure transaction efficiency but also total regulatory compliance.
However, payment development and compliance are no small tasks — and many organizations are struggling to keep up with regulatory requirements.
Data from the 2022 Verizon Payment Security Report reveals that 57% of organizations failed their interim PCI DSS validation assessments due to missing security controls. The report further uncovers that the worst-performing PCI DSS requirement among companies is the requirement to regularly test, develop, and maintain secure systems.
Regulatory compliance only increases in complexity when conducting business abroad. Not only do businesses need to contend with the regulations in their home country but also the various compliance expectations of the international regions they work in.
Of course, there are ways to simplify compliance management — yet, these processes require significant development efforts that can pull the attention of a business’s developers away from innovation.
This brings us to one vital question: How can businesses simplify compliance without increasing the developmental burden of their payment system?
How Payments Orchestration Reduces Development & Compliance Burdens
Payments orchestration is the process of leveraging data and multiple payment service connections to create a more diverse and resilient payment ecosystem. Through payment orchestration, your business can simplify their payment system while simultaneously optimizing revenue and the customer experience.
Let’s take a closer look at three ways payments orchestration can help businesses tackle the challenge of development and compliance burdens:
1. Full Compliance Management & Maintenance
Compliance is a tricky beast to tame, as new payment regulations are constantly being released — not to mention the hefty costs that come with maintaining the right level of compliance.
In a 2022 PYMNTS Intelligence report, it was revealed that large businesses can spend between $50,000 to $70,000 to achieve Level 1 PCI DSS compliance.
The complexity of compliance has only increased as more alternative payment methods (APMs) are introduced and as officials work diligently to find the right ways to regulate these new payments.
Payment orchestration offers one key advantage that stands out in terms of compliance — the ability to meet multiple regulatory standards without overcomplicating the payment process for customers.
The PYMNTS report discussed above further states that:
“Payments orchestration can offer businesses a competitive edge by aggregating all payment relationships in one place, simplifying the overall payments process and reducing the confusion caused by diverse compliance needs.”
With payment orchestration, your business can remain compliant with multiple regulations without introducing undue customer friction or dedicating extra manpower and talent into the payments process.
2. Simplified Integrations
The ability to easily and quickly add new integrations to a payment system is paramount.
Payment orchestration simplifies the integration process by providing businesses with greater and more instant access to the payment services they need.
Generally, a payment orchestration solution will have pre-existing relationships with a multitude of payment service providers (PSPs). Thanks to these relationships, payment orchestration platforms can offer a wide variety of services without being bound to one particular PSP or other payment company.
Moreover, the technical side of integrations is handled by the payment orchestration platform, meaning the platform bears the burden of building integrations rather than your business.
All-in-all, this simplified approach to integrations offered by payment orchestration not only reduces the burden of compliance but also opens new opportunities to expand globally.
3. Global Connectivity
We have discussed how payments orchestration helps businesses integrate the payment services they need while reducing the compliance burden — let’s now discuss how it can facilitate global expansion.
As we covered earlier, compliance can increase in complexity when working abroad. Additionally, expanding into new regions can require your business to have a wider range of payment methods available to customers, especially any local payment methods (LPMs) that are popular in the region.
Through payments orchestration, your business can establish not just a resilient payment system but also a robust payments ecosystem that provides all the payment methods and services you could ever need.
It’s hard to deny the benefits that come from having a global network of PSPs, APMs, LPMs, financial institutions, fraud tools, and more that you can easily connect to.
Final Thoughts: Reduce Development & Compliance Burdens with Spreedly
Choosing the right payments orchestration provider for your needs comes down to finding a platform with the ideal technical capabilities and global connectivity.
Here at Spreedly, our payments orchestration platform and API give you access to more than 200 different payment services including fraud tools, payment gateways, and other key resources. Plus, Spreedly can orchestrate payments in 100+ currencies.
As for compliance, Spreedly covers all of your bases. Our payment orchestration platform upholds Level 1 PCI compliance, ensuring our clients have more free time to dedicate towards business innovation.
Spreedly is trusted by more than 50,000 businesses including tens of thousands of merchants, merchant aggregators, and fintechs. Contact us today to join Spreedly’s growing payments ecosystem.