Payments Orchestration

3 Ways Merchants Orchestrate Payments

See how merchants can implement, orchestrate and optimize their payment stack.

Written by
Charlotte Sawyer
Publication Date
February 20, 2024
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Over the past few years, payment orchestration has exploded in popularity among merchants.

In a 2023 Merchant Risk Council survey of more than 100 companies operating in the payment space, 52% of respondents indicated they currently use five or more payment integrations. A further 33% expressed a desire for more time and resources to deliver new functionalities, while 19% emphasized a need for more efficient integration building times. 

Putting the time and effort into implementing payment orchestration is no small feat. Your organization deserves recognition for investing in multiple integrations and building smart routing logic — but is your approach to payment orchestration fullyworking to it's highest potential for you?

For many merchants, bridging the gap between a payment orchestration implementation and a fully optimized payment system comes down to how orchestration is leveraged.

Let’s take a look at three ways merchants orchestrate payments and how outsourcing your orchestration needs to a payment orchestration platform can increase cost efficiency. 

Three Ways Merchants Leverage Payment Orchestration Effectively

Merchants orchestrate payments in various ways to streamline transactions and enhance the overall customer experience. You may be orchestrating today and not know it. The method of orchestration you utilize can impact different facets of business, from customer loyalty to revenue generation.

Here’s an overview of three most common ways merchants successfully orchestrate payments: 

1. Payment Vaulting & Network Tokenization

Safeguarding financial and payment data must always be a priority when developing your approach to payment orchestration. 

Payment vaulting and network tokenization have major roles to play when enhancing the security of your payment orchestration strategy. A payment vault securely stores customers’ payment information in encrypted databases, while network tokenization adds an extra level of privacy and safety to minimize the risk of payment data leaks during payment processes. 

By implementing vaulting and tokenization solutions as part of your approach to payment orchestration, you can greatly reduce the likelihood of payment fraud and data breaches. Moreover, vaulting and tokenization can be crucial for achieving an effective compliance strategy as well. 

2. Payment Gateway Integrations

Multiple payment gateway integrations are some of the most prevalent examples of orchestration in the modern payments industry. Merchants can integrate payment gateways into their websites and applications to streamline the digital payment process while ensuring top-notch security. 

By focusing on payment gateway integrations as your approach to orchestration, you can leverage these gateways as intermediaries between your website, app, or platform and your payment processor. In turn, you can support more payment methods and facilitate smoother transaction authorizations. 

Additionally, integrating multiple payment gateways as part of your payment orchestration strategy helps you expand into new regions more efficiently. You can cater to diverse customer preferences, increasing your overall conversion rates and providing customers with a broader range of payment options. 

3. Subscription Billing Optimization

Subscription-based services and products are a treasure trove for merchants in the digital era — so long as those merchants have the payment capabilities to optimize recurring subscription payments. 

Payment orchestration enables you to reduce customer churn for recurring payments and subscription billing, and provides tools to handle the nuances of cardholder vs merchant ititiated transactions and managing failed payments when a decline occurs. When paired with the right payment gateway integrations, you can customize your subscription billing cycles and analyze revenue metrics from a central hub, simplifying the subscription management process as a whole. 

For industries that rely heavily on subscriptions for major revenue boosts — such as the entertainment industry — utilizing payment orchestration can be vital for reducing the administrative overhead involved with subscription payments. Plus, payment orchestration helps to improve cash flow predictability, giving your business clearer oversight of your financial hygiene.  

Why Outsourcing Payment Orchestration Benefits Your Business

You’ve built and integrated a variety of payment services and tools into your system, marking the completion of your payment orchestration implementation — but you’re not done yet. 

Payment orchestration is not a one-time feat, but rather an ongoing effort. After you roll out your new payment capabilities, you must stay ahead of evolving risks and challenges within the payment space. 

Maybe it’s a new payment gateway, or maybe you’re expanding into a new region where customers prefer a payment method you don’t yet offer — whatever the case may be, payment orchestration and optimization do not have one definitive finish line. 

No good deed goes unpunished, and upgrading your payment system with payment orchestration is no exception. To reduce the amount of effort, labor, and time your team spends on maintaining your approach to orchestration, outsourcing your orchestration needs is essential. 

Partnering with a payment orchestration provider can benefit your business in three key ways:

  • Higher Authorization Rates: Taking your authorization rate up a few percentage points may sound like a simple task, but the reality is much more complex. A payment orchestration provider can hone in on improving your authorization rate, focusing entirely on this goal while your in-house teams spend more time focused on the needs of customers. 
  • Specialized Support: Payment orchestration involves many moving parts. For smaller businesses especially, maintaining an expert orchestration team that can manage these moving parts effectively can be near-impossible. By comparison, outsourcing to a payment orchestration provider can alleviate your biggest pain points and ensure you always have access to specialized experts with a deep understanding of how to best optimize a payment orchestration strategy.  
  • Regional Expansion: Expanding into new geographic territories requires you to have a thorough understanding of a region’s financial markets and payment preferences. By outsourcing your payment orchestration needs to a platform provider, you gain the advantage of pre-established relationships with banks, payment service providers, and other key partners in your target regions.

Lighten Your Payment Orchestration Load with Spreedly

By implementing payment orchestration at your business, you have accomplished an impressive achievement. However, you have likely also encountered the many pain points that pop up when managing and maintaining a payment orchestration strategy.

At Spreedly, our goal is to help you simplify your approach to payment orchestration.

Outsourcing your orchestration needs to Spreedly ensures you gain all the same orchestration benefits with exceptionally reduced overhead. Rather than splitting your team’s attention between front-end and back-end objectives, you can rely on Spreedly’s payment orchestration platform to provide you with the solid orchestration foundation you need in your payment system. 

You’re already orchestrating — why not make it simpler and more cost-effective with Spreedly?

Speak with Spreedly today to discover how our platform optimizes payment orchestration.

Download the Payments Orchestration eBook Below

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