FinTech

by Team Azilen

April 18, 2024

Payment Orchestration: Make Your Payment Ecosystem Smarter, Smoother, and Safer

Without Payment Orchestration,

Product Owner: Our FinTech product only supports credit card payments and bank transfers.

Potential Client: That’s a problem. We need a solution that includes digital wallets from the start.

Product Owner: We’ll consider adding them in the future.

Potential Client: Sorry, we’ll have to look elsewhere.

With Payment Orchestration,

Product Owner: Our FinTech product uses payment orchestration, supporting credit cards, bank transfers, and digital wallets.

Potential Client: That’s perfect! Let’s move forward. Having all these options is a deal-maker for us.

Payment orchestration is like the conductor for your payment options, making sure they all work smoothly when customers buy things online.

But does it sound complex to you?

This blog has all the info you need about it – why it’s important, how to do it, and how Azilen, with 15 years of FinTech experience, can assist you.

Payment Orchestration – The True Essence of it

Payment orchestration is the synchronization of various payment methods, processors, and channels into a cohesive and efficient system.

It enables FinTech product owners to streamline their payment processes, optimize transaction routes, and enhance the overall customer experience.

A payment orchestration platform serves as the backbone of this synchronization.

It offers a centralized hub that connects merchants with multiple payment service providers (PSPs), acquirers, and payment methods.

Overall, it plays a significant role in driving operational efficiency, reducing complexity, and fostering innovation in payment options.

What is the Role of the Payment Orchestration Layer in the Modern Payment Ecosystem?

A payment orchestration layer is a specific part of a payment infrastructure that focuses on coordinating and managing interactions between different PSPs, gateways, banks, and other financial entities.

Here’s why it’s important.

Allows integration with multiple PSPs through a single interface, reducing the integration complexity.
Optimizes payment routing for cost-effectiveness, reliability, and customer preferences.
In case of PSP downtime or technical issues, it can automatically reroute transactions to alternative PSPs.
Enhances security through features like tokenization, encryption, and fraud detection.
Facilitates global expansion by handling multiple currencies, languages, and regulations.
Improves customer experience with multiple payment options and personalized checkout.
Analyzes payment data to provide insights for informed decision-making and growth opportunities.

How You Can Streamline Cross-Border Payments through Payment Orchestration?

Payment orchestration can facilitate and optimize cross-border payment processes.

It can help you handle global transactions more efficiently and securely.

Here are some ways you can achieve this.

Unified Interface: Utilize a single platform for managing multiple payment methods.

Dynamic Routing: Route transactions based on cost, currency, speed, and reliability.

Compliance Automation: Automate KYC, AML checks, and regulatory compliance.

Optimized Currency Conversion: Offer convenient currency conversion with minimal fees.

Real-Time Monitoring: Monitor transaction status and performance in real-time.

API Integration: Integrate with e-commerce, accounting, and CRM systems via APIs.

Risk Management: Implement fraud detection, chargeback prevention, and transaction monitoring.

Scalability and Flexibility: Ensure scalability for business growth and regulatory changes.

👉 Read our insightful blog on FinTech Product Development ↗️

Payment Orchestration vs. Payment Gateway: Exploring Payment Infrastructure

HTML Table Generator

Aspects	Payment Orchestration	Payment Gateway
Definition	Manages multiple payment methods and providers, optimizing transaction routing and reconciliation.	Facilitates online transactions by authorizing payments between merchants and customers.
Scope	Broader scope, handling multiple payment methods, providers, and geographies.	Focused on specific payment processing tasks, typically limited to a single provider or a few providers.
Integration	Integrates with various payment gateways, processors, and banks to offer a wide range of payment options.	Integrates directly with merchants' websites or applications to process payments through a specific gateway.
Flexibility	Offers flexibility to switch between payment providers seamlessly for optimizing costs, reliability, and user experience.	Limited flexibility as it primarily relies on a single or a few selected payment providers.
Customization	Provides customization options for payment flows, user experience, and reporting based on business needs.	Limited customization compared to payment orchestration solutions, usually offering standard features.
Scalability	Highly scalable, suitable for businesses with complex payment requirements or those operating in multiple markets.	Suitable for smaller businesses or those with simpler payment processing needs.
Maintenance	Requires ongoing maintenance to manage integrations with new payment providers, compliance updates, and optimization.	Relatively lower maintenance as it focuses on a single or limited set of payment providers.
Cost-effectiveness	Can be cost-effective by optimizing payment routes, reducing fees, and leveraging competitive rates from different providers.	Generally cost-effective for basic payment processing but may have limited cost optimization options.
Risk Management	Offers advanced risk management features, fraud detection, and compliance tools due to integration with multiple providers.	Provides basic risk management tools but may lack advanced features available in orchestration platforms.
Reporting & Analytics	Provides comprehensive reporting and analytics across multiple payment providers, offering insights for decision-making and optimization.	Offers basic reporting and analytics specific to the integrated payment gateway.

How to Implement Payment Orchestration Platform?

Implementing a payment orchestration system involves coordinating various payment methods, providers, and channels to streamline transactions.

Here are two main methods:

For Whom it is Best

It’s ideal for businesses with unique payment workflows or specific requirements that cannot be fully met by existing payment orchestration solutions or introduce a brand-new solution for their customers (free or for a fee).

Benefits

Tailored to specific business needs
Greater control and flexibility
Scalable with the growth of the business
Competitive edge

Cautions

High development costs
High-level technical expertise required
Compliance and security challenges

Azilen’s Best Practices

We carefully look at what users want and their expectations to figure out all the things the solution should do, both in terms of how it works and what it should achieve.

For Whom it is Best

It’s suitable for businesses looking for a faster and more cost-effective way to implement a payment orchestration system. It’s also ideal for organizations with standard payment processes and requirements that can be addressed by existing payment orchestration platforms.

Benefits

Rapid deployment
Cost-effective
Access to features and updates
Support and maintenance

Cautions

Potential limitations
Vendor lock-in
Integration challenges

Azilen’s Best Practices

We select a reputable and reliable payment orchestration platform that aligns with your business needs, scalability requirements, and compliance standards. In fact, even with an integrated solution, we plan for necessary customizations or extensions to address specific business requirements.

Top Payment Orchestration Platforms You Can Integrate

Here are some of the top payment orchestration platforms that you can integrate with:

Checkout.com
Payoneer
Treasury Intelligence Solutions (TIS)
Akurateco
PayPal
Visa Acceptance Solutions (CyberSource)
Airwallex
IXOPAY
PayU
Spreedly

2024 Payment Orchestration platforms: #fintech #payments #paytech #digitalpayments #paymentorchestration pic.twitter.com/OdHpr3nXEE

— Jon Rodrigues ⚡️ (@JonRodrigues) March 11, 2024

👉 Read our insightful case study on Digital Wallet For Cashless Micropayments ↗️

Facilitating Payment Orchestration: Azilen’s 15 Years of Expertise

One good thing about finance is that it impacts every human.

And as a product engineering company ↗️ with a deep expertise in FinTech software development, we acknowledge this.

We help you improve transparency across transactions and bring security and compliance to the payment ecosystem so that you can offer a frictionless payment experience for your customers.

For that, we’ve a FinTech-focused team of product engineers, integration experts, business analysts, compliance experts, QA specialists, and UI/UX designers.

We’ve a rock-solid experience for,