What is payment orchestration and how improves the efficiency of your online payments

In a payment landscape that is becoming more fragmented and complex, payment orchestration emerges as a critical tool for optimizing the management of online payments. But what exactly is payment orchestration, and how can it help businesses enhance their operational efficiency?

What is Payment Orchestration

Payment orchestration is the process of managing and routing payments through various payment processors and payment service providers (PSP) based on predefined rules customized to each business’s needs. This technology enables businesses to improve conversion rates, reduce costs, and enhance the end-user payment experience.

A Payment Orchestration Platform allows companies to:

• Route payments through the most effective processor based on predefined criteria such as country, brand, card type, transaction amount, etc.
• Set up alternative processors if a transaction is declined by the primary PSP. In cases of “false declines” or false rejections, it allows for processing the payment through another processor to prevent the payment from being rejected.
• Decide when to activate the 3DS protocol, based on variables like the card’s country of origin.
• Automatically block high-risk transactions using criteria such as BIN, card region, etc.

Advantages of Payment Orchestration

Ecommerce in Europe is rapidly growing (now reaching $975.7 billion) and is expected to triple by 2030, surpassing three trillion transactions globally.

Additionally, there is a large number of PSPs and entities that facilitate card processing. Today, businesses can request and use Virtual Point of Sale (POS) systems from various providers, allowing further optimization of their payment management and adapting to their specific business needs.

Using orchestration helps merchants to:

• Increase the conversion rate: By reducing rejections and processing errors, approval rates can improve by up to 20%.
• Reduce costs: By routing payments through the most profitable or suitable PSP for each case.
• Limit fraud: By setting rules to validate specific transactions based on the card’s BIN or country of issuance.
• Centralized management: Allows managing multiple PSPs and processors from a single panel, simplifying administration and technical maintenance.

Orchestration allows companies to optimize their payment strategies. Without a payment orchestration platform, businesses would need to connect to each PSP and create technology that enables payment routing.

An orchestration platform simplifies this process by automatically directing transactions to the most suitable processor, thereby improving operational efficiency and user experience.

ZRU, the Payment Orchestration Platform

ZRU is a Spanish payment management platform that, in addition to being connected with over 120 alternative payment methods, enables orchestration between more than 15 processors and PSPs (Redsys, Stripe, Adyen, Global Payments, WorldPay, Cecabank, etc).

Thanks to its orchestration functionality, merchants can create rules to automatically route each card payment with just a few clicks from the panel.

It is important to highlight that orchestration is completely imperceptible to the buyer, as it is conducted technically in the background without interfering with the shopping experience.

The technical process happens in the background, ensuring it does not disrupt the payment experience.
When a customer enters their card information on the payment screen, ZRU collects this data and automatically forwards it to the chosen processor based on the pre-set orchestration rules. This setup guarantees a quick, smooth, and seamless payment process for the user.

ZRU enables merchants to:

Set up routing rules

ZRU facilitates the creation of sophisticated payment pathways according to various criteria. For example:

• Domestic cards: Process payments with Spanish cards through local processors like Redsys to benefit from competitive rates.
• International cards: Direct them to global processors like Stripe or Adyen, which might offer better acceptance rates for these transactions.
• Payment types: Enhance recurring payments with specialized PSPs to reduce the chances of automatic charge declines.
• By issuing bank: Route transactions to the processor associated with the card issuer, such as sending BBVA cards to BBVA’s processor.

Configure backup processors

The platform allows merchants to set up alternative processors that activate if the primary processor rejects a transaction. This minimizes the risk of false declines and increases the likelihood of successful payments. Thus, if the initial processor fails, the payment is automatically retried with another pre-defined PSP.

Analyze and optimize

ZRU provides metrics and analytics to assess the performance of each PSP, ensuring each payment takes the most efficient route possible.

By integrating multiple payment processors and defining intelligent pathways, ZRU reduces the risk of false declines, optimizes acceptance rates, and enhances the customer experience. This approach not only boosts revenue and conversion rates but also prevents sales loss due to payment processing issues, offering a robust and adaptable payment system tailored to the needs of each business.

Choosing a payment orchestration platform

It is crucial to select a platform that offers comprehensive and flexible configuration. Aside from facilitating the integration of various payment methods and PSPs, a platform like ZRU also provides additional features such as:

• Connections to alternative, local, and global payment methods: purchase financing, Apple Pay, Google Pay, payment initiation, etc.
• Management of all transactions, regardless of the processor or payment method used: full refunds, partial refunds, real-time information, etc.
• Payment links for collection.
• Customizable checkout options.
• Subscriptions, one-time payments, and card tokenizations for future charges.
• Easy integration through plugins (WordPress, Magento, Bubble, etc.) and libraries.

Conclusion

Payment orchestration is an essential technology for companies aiming to maximize payment processing efficiency, improve conversion rates, and reduce operational costs. In a fast-paced market, utilizing a payment orchestration platform like ZRU is not just a competitive advantage; it is key to turning payments into a strategic growth tool.

In today’s fast-paced environment, where every moment is crucial, employing a payment orchestration platform like ZRU is not just about gaining a competitive edge; it is essential for turning payment processes into a strategic instrument for business growth.