2 hours Ago By PYMNTS
In today’s fast-paced eCommerce landscape, platforms like marketplaces and aggregators are vital for merchants looking to expand their reach. However, they face challenges in offering diverse payment options while maintaining smooth operations. A PYMNTS Intelligence report, “ The Orchestrated Platform: Why Payments Orchestration Is Not Just for Merchants ,” a collaboration with Spreedly , reveals payments orchestration has emerged as a key solution, allowing these platforms to manage complex payment systems effectively and strengthen merchant relationships.
The Growing Demand for Diverse Payment Methods Platforms face pressure to accommodate a growing variety of payment methods. Local payment methods are expected to represent 58% of global eCommerce transactions by 2028, up from 47% in 2023. This shift is largely driven by the rise of account-to-account (A2A) payments, which are projected to account for 18% of all transaction volumes by 2028, up from 8% in 2023.
As the demand for diverse payment options rises, platforms must adapt to ensure their merchant partners can offer customers the preferred payment methods. Consider 77% of consumers indicated they would abandon their shopping carts if their desired payment options were unavailable, underscoring the need for effective payments orchestration to streamline transactions across various platforms and ensure customer satisfaction. Streamlining Payment Integration for Platforms For platforms, the challenges of integrating multiple payment service providers (PSPs) can be daunting.
Platforms often lack the resources to create relationships with every merchant’s existing PSP while simultaneously providing a comprehensive range of payment gateways. According to the report, 80% of firms struggle to pinpoint the causes of payment failures, leading to increased operational costs and employee workloads. Payments orchestration alleviates these burdens by offering a unified solution that allows platforms to onboard new merchants quickly and efficiently.
With access to various payment gateways and compliance with multiple regulatory frameworks, platforms can focus on scaling their operations rather than getting bogged down by individual payment processing issues. This capability not only enhances the merchant experience but also significantly reduces the risk of payment declines, which cost U.S.
businesses an estimated $81 billion last year due to false declines. Extending Benefits Beyond eCommerce Payments orchestration is proving invaluable beyond traditional eCommerce, particularly for nonprofits, unions and similar organizations that need to aggregate payments, donations or dues. These entities often have limited IT resources, making seamless integration of multiple payment gateways essential for effective fundraising and member engagement.
This orchestration significantly reduces the time required to onboard new payment methods, enhancing operational efficiency and allowing organizations to focus on their core missions. Payments orchestration enhances platforms’ competitiveness by facilitating quick onboarding and access to diverse payment options. This not only attracts more merchants, but also ensures compliance with international regulations, crucial for global expansion.
As platforms navigate complex currencies and payment methods, orchestration allows them to enter new markets confidently while delivering a seamless experience for merchants and consumers. As demand for diverse payment options increases, payments orchestration becomes essential for platforms in the evolving eCommerce landscape. By streamlining integrations and enhancing the merchant experience, platforms can drive growth, improve customer satisfaction and build lasting partnerships, positioning themselves as leaders in innovative payment solutions.
.
