Payment Orchestration - Making the money go round
With Innumerable payment options to choose from and 100+ PGs & banks, providing customers their favourite way to pay is a headache for merchants. On top of this are Payment Operations, Costs, and Payment Success Rates, which if not optimised, lead to lost revenue.
This is where Payments Orchestration comes into play.
What Is Payment Orchestration?
Payment Orchestration or Routing refers to integrating and managing the entire payment process, including payment authorization, transaction routing, and settlement. This involves connecting to different payment service providers (PSPs), acquirers, and banks on a single, unified software layer.
Payment Orchestration entails efficiently managing your payment stack within one platform rather than handling possibly dozens of integrations with different PSPs, enabling efficient scaling. Enterprises can expand into new markets, integrate multiple payment providers, and accommodate every Payment Method under the sun without worrying about compliance with relevant regulations.
Payments orchestration is about maximizing payment conversion.
How does Payment Orchestration/Routing work?
Payment Processes are nothing short of intricate mazes with multiple legs involved. At any given time, there's a possibility of a Payment getting lost. Payment Orchestrators essentially act as a guide, using automated transaction routing to detect the best routes to direct payments through. Consider it the shepherd of Payments. Payment Orchestration Platforms (POPs) shepherd payments to the best payment service providers that reduce failures and boost conversion.
How Does Dynamic Routing Improve Payment Flows?
Payment Orchestration Platforms use dynamic routing to improve Payment Flows. Payment conversion and success rates are directly related to how you route transactions. Dynamic routing enables multiple PSPs (payment service providers) for processing, which in turn allows payments to be routed through the provider that offers the best probability for success. Pairing dynamic routing protocols with multiple PSPs will both provide flexibility and reduce losses from PSP failures.
Dynamic routing eliminates many issues or limitations from payment providers while still providing your customers with a seamless experience.
Payment Orchestration Platforms drive Growth
Payment orchestration platforms offer benefits to companies of all sizes, from SMBs to sprawling multinational enterprises, seeking to keep pace in today's fast-paced business climate. The average transaction success rates in India tend to hover around around 65-70%. While there are a host of reasons due to which Payments fail, upwards of 10% of such failures can be mitigated with a Payment Orchestration Platform.
By streamlining the payment process, enhancing the customer experience, and driving up conversion rates, Payment Orchestration platforms have become essential for businesses looking to stay competitive and maximize their revenue.
The Benefits of Payment Orchestration
Payment Orchestration Platforms ensure that you get the most out of every transaction. Let's look closely at how do Payment Orchestration platforms drive growth for your business.
Payment orchestration platforms simplify end-to-end payments and enhance customer experience leading to a boost in online sales and increased revenue. More Transactions cross the finish line, customers are delighted with their experience, and businesses enjoy higher NPS, all leading to a growing Topline.
Seamless Payment Integrations
By using a payment orchestration layer, merchants can work with multiple local and global PSPs via a single integration, allowing for drastically faster integration times. For example, a business that needs to offer an alternative payment method can easily connect with a PSP offering these customer payment preferences.
Diversity in Payment Methods
A major advantage of payment orchestration platforms is that they give merchants access to a wide range of Payment Methods. As business needs change, they can easily add numerous payment methods. This is ideal for companies with customers who have diverse payment preferences, such as credit or debit cards, mobile wallets, or “Buy Now, Pay Later.”
Bespoke Customer Experiences
Customers tend to abandon their cart if the checkout process is too difficult or time-consuming. Payment orchestration platforms can help prevent cart abandonment by creating a streamlined checkout experience for customers - from Diverse payment options, Saved Cards, and Intelligent retries, to automatically inputting OTPs. Everything that makes a transaction frictionless for consumers. That's a tall order for merchants without a Payments Orchestration Layer.
Lower Payment Processing Costs
Growing organizations will likely need to connect to multiple providers as they expand. Unfortunately, the cost of implementing and maintaining these connections can quickly add up, but a payment orchestration platform can decrease payment processing costs by routing transactions to processors with the lowest costs.
Payment orchestration with Juspay
Multiple Payment Processors, Multiple Payment Gateways, Integration Time and Costs, a dedicated team to manage Payments, fragmented analytics, and broken and frustrating checkout experiences - Payments are hard to get right. But this should not come in the way of your Growth Story.
Enter Juspay, a tech layer between you and your customers, powering everything from the time your customers land on a checkout page - from laying out payment options to allowing you to 'save a card for future use to automatically inputting OTPs. Everything that makes a transaction frictionless.
Juspay Payments Router routes transactions efficiently and effectively to increase your payment conversion rate, reduce payment costs and improve availability.
Let's take a walk and see the power of Payments Orchestration.
Say you have two PGs - PG1 and PG2. You set up a rule and split UPI traffic at 70:30. On March 2, 10.55 pm, PG1 started facing a higher number of failures on UPI payment methods, Juspay router immediately moved maximum traffic to PG2. When PG1 became better on the UPI payment method again, traffic moved back to PG1 as per the business rules (70:30 traffic split)
Time duration: ~30minutes - 10.55pm to 11:25pm
Transactions routed to PG2: 4714
Transactions went to success on PG2: 3270
GMV saving: ~ Rs. 32 L
There's so much more to it. Let's look at another scenario
For Merchant M1, PG1's SR went down to 20% from 11:25 to 11: 55. PG1:PG2:PG3 traffic split is in 50:25:25. Juspay payment router detected downtime within a minute and moved traffic to PG2.
This was just a sneak peek into how Juspay solves for Payments Scale and unlocks growth for your Top Line. Leading online businesses have seen INR 2000 crore worth of GMV added to their Topline, which would have been lost otherwise.
Grow with Juspay's Payment Orchestration
As you build, refine and grow your business, it is imperative to have a payments partner who understands the complexities and challenges that come in the journey and can help you navigate the same.
Juspay is the payments platform of choice for India's leading companies, who partner with us right from their early days. We provide a future-proof end-to-end infrastructure connecting directly to 300+ Payment Gateways, Networks like Visa, Mastercard, and NPCI, and your customers' favorite payment methods. Juspay's innovative products have transformed the payments experience, turning payments into a growth lever for your business.
We're part of India's growth story, one which makes Payments seamless for her startup ecosystem and her billion citizens. Are you ready? Explore how Juspay can hyper-charge your growth story.