Payment orchestrator: definition, role, and selection criteria

In 2023, the online cart abandonment rate reached nearly 8 out of 10 carts, according to SaleCycle. A faulty checkout process can further lead to purchase abandonment. And for good reason: users now demand a frictionless experience, from the moment they land on the site to the final payment.

In response to this need, payment providers and methods are evolving and multiplying. For merchants, choosing the solution that best meets their consumers' expectations has become a real challenge! Not to mention that beyond having to respond quickly to these changes, they must keep a close eye on implementation and operating costs. This is where a payment orchestratorcomes in: with a more flexible, secure, and efficient approach, this solution allows companies to improve their conversion rates and payment management.

But more specifically, what is payment orchestration? How does it work, and what are the criteria for a high-performance solution? Let's take a closer look.

What is a payment orchestrator?

A payment orchestrator is a SaaS platform that connects businesses to the entire payment ecosystem. It ensures the coordination and optimization of transaction flows by integrating all the payment methods required by the company. Through a single interface, it provides centralized management of various payment providers, allowing businesses to monitor and optimize their performance.

What is the purpose of a payment orchestrator?

A payment orchestrator is primarily used to provide a smooth and secure payment journey for both businesses and consumers. Its functions are numerous:

Easily add new PSPs and payment methods

The payment orchestrator is based on no-code technology that allows companies to activate a wide catalog of payment methods in just a few clicks. Merchants can then quickly expand their payment options without the usual technical and financial constraints. This flexibility is invaluable for meeting the diverse payment preferences of consumers around the world.Read also: How to integrate new providers or payment methods without overloading your IT roadmap?

Increase payment acceptance rates

Thanks to smart routing—the ability to intelligently manage transactions across different PSPs and payment methods—the orchestration solution improves payment acceptance rates. By routing transactions to the most appropriate provider—or retrying with a secondary provider in the event of a failure—it minimizes payment failures and boosts conversion.

Monitor performance in real time

A payment orchestrator allows businesses to track and optimize the performance of their payment channels through advanced analytics tools. These insights are a goldmine for making strategic adjustments, increasing efficiency, and improving profitability.

Simplify bank reconciliation

By centralizing transactions from various payment channels, the payment orchestrator simplifies the bank reconciliationprocess. Businesses benefit from a unified view of their finances, better tracking, and clearer payment analysis.

The benefits of a payment orchestrator

Flexibility and scalability

By easily integrating new payment methods and PSPs, businesses can respond more quickly to market changes and customer preferences. This flexibility, combined with the ability to adopt the best payment standards on the market, helps create a truly tailored shopping experience! Merchants can then access new markets, including international ones where payment requirements vary from country to country.

Cost rationalization

Choosing a payment orchestrator also means choosing to streamline your infrastructure to achieve peak performance. It provides a company with all the capabilities of the market to test and analyze the performance of every payment and transaction route. Conversion and acceptance rates are automatically improved as a result. This centralization, combined with simplified IT integration via API, significantly reduces costs. As a bonus, the autonomy provided by the solution allows you to reconfigure your payment strategy indefinitely, according to the company's needs and budget.

Improving the customer experience

The payment orchestrator enriches the online shopping experience by offering a wide range of payment methods through a vast network of partners. At the same time, it ensures service continuity in the event of a failure: transactions are then routed to another provider configured as a backup to the first. It guarantees a smooth, seamless payment experience, improving customer satisfaction, loyalty, and consequently, the conversion rate.

Enhanced security and compliance

Through a centralized and unified platform, the orchestrator ensures the consistent implementation of robust security and compliance measures. These apply to all payment channels to protect sensitive customer data and reduce the risk of fraud.

How to choose the right payment orchestrator?

Choosing your payment orchestrator should not be taken lightly! It must be adapted to your organization and meet several criteria:

1. Breadth of the catalog

Choose an orchestrator that supports a vast range of providers, payment methods, and suppliers. This criterion is particularly important if you are targeting an international market with diverse payment preferences.

2. Advanced features

The payment orchestrator offers various types of features: to increase acceptance rates, such as fall-back processes, backups, A/B testing, and anti-fraud tool integration, as well as to improve financial management through features like bank reconciliation.

3. Security and compliance

Transaction security must be an absolute priority. Verify that the payment orchestrator complies with the highest security standards, such as PCI DSS or GDPR. It must protect both your company and your customers. Technical robustness is also a key selection criterion.

4. Tailored customer journeys

As always, the payment experience must be seamless and intuitive for your customers! Look for solutions that offer personalized, fast payment flows and various payment options to enhance the user experience.

5. Data analysis and reporting

The ability to provide detailed analytics and transaction reports can help you better understand customer behavior and optimize your sales strategies. Ensure that the orchestrator offers comprehensive analytical tools.

6. Support and customer service

The quality of technical support is crucial, especially when integrating new technologies. Choose a provider that offers responsive and knowledgeable customer service to quickly resolve any issues that may arise.

By taking these criteria into account, you will have everything you need to choose a payment orchestrator that not only meets your requirements but is also capable of supporting your company's growth.

An innovative player in payment orchestration, Purse provides companies with a robust and flexible platform to manage their transactions. Purse simplifies the integration of various PSPs and payment methods while ensuring security, compliance, and cost optimization. This turnkey solution helps merchants improve their conversion rates and customer experience.