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Payment Orchestration? What is this?

Neeraj Kumar
2 replies
I have been seeing a multiple products in the market which talks about Payment Orchestration. I have a general Idea of what this is. What is the use of Payment Orchestration, why should I choose to use an Orchestration Platform? Wouldn't this increase the costing? What do you guys think? Share your thoughts on this.

Replies

Caio Freitas Ferreira
Hi Neeraj, how are you ? Caio from Yuno (Payment Orchestration Software) here. Payment orchestration is the process of coordinating and automating the flow of payments between different payment systems and service providers. By streamlining and automating these processes, payment orchestration can help reduce costs by eliminating the need for manual intervention and minimizing errors. Here are a few specific ways that payment orchestration can help reduce costs: 1 Automating payment processes: Payment orchestration can automate the flow of payments between different systems and service providers, reducing the need for manual intervention and improving efficiency. This can help reduce the labor costs associated with managing payments. 2 Minimizing errors: Payment orchestration can help reduce the risk of errors in the payment process, such as incorrect payment amounts or misdirected payments. This can help reduce the cost of rectifying mistakes and improving customer satisfaction. 3 Reducing fees: Payment orchestration can help businesses negotiate lower fees with payment service providers by consolidating their payment volume and leveraging their bargaining power. 4 Improving cash flow: Payment orchestration can help businesses get paid faster by streamlining the payment process and enabling real-time tracking of payment status. This can help improve cash flow and reduce the cost of financing outstanding invoices. 5 Enhancing security: Payment orchestration can also help reduce the risk of fraud and other security threats by implementing advanced security measures and monitoring payment activity in real-time. This can help reduce the cost of responding to security breaches and protecting customer data. Regarding if why you should use, If you are a small business with a low volume of payments, you may not need a payment orchestration platform. However, if you are a large business or you process a high volume of payments, a payment orchestration platform can be a valuable tool. An orchestration platform can help you to reduce your payment processing costs by negotiating better rates with payment processors, saving time in setups, and mainentence of integrations It can also help you to avoid fraud and chargebacks, which can be costly. Let me know if its clear or you have more questions! glad to answer them!
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Michael Tomlins
👋 Hey Neeraj! I'm Michael Tomlins, a payment orchestration specialist from Apaya (www.apaya.io) with deep experience in the MENA region. Regarding your point of around increasing costing, we see all our customer obtain a 5x ROI for the following reasons: 1. Operational Efficiency: Modern orchestration platforms use no-code tools, dramatically reducing the finance and coding resources needed for payment management. This means lower operational costs. 2. Expanded Market Reach: With a single integration, you can access multiple payment methods and providers. This opens doors to new markets and customers without the need for multiple, resource-intensive integrations. 3. Optimized Transaction Costs: Intelligent routing allows you to switch between providers seamlessly, securing the best rates for each transaction. Over time, this can significantly lower your overall transaction fees. 4. Improved Uptime: Smart re-routing ensures you never miss a sale due to payment provider downtime. This feature alone can pay for the platform by preventing lost sales. 5. Enhanced Conversion Rates: Offering more payment options and using dynamic, rules-based checkouts optimised for each customer and transaction can boost your conversion rates substantially. The key is to view payment orchestration not as an added expense, but as a strategic investment in future proofing your payment infrastructure in the ever changing payments sector. When implemented correctly, it can drive revenue growth and operational efficiency that far outweigh the initial costs. I'd love to hear your thoughts and experiences with payment orchestration. Have you encountered these benefits? Any challenges? Let's discuss...
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