Axerve which supports frictionless payment solutions for eCommerce and physical sales, has released of a new white paper, ‘Payment Orchestration: unlocking cost-effective eCommerce for merchants in a multiple payment provider ecosystem’. The white paper explores payment orchestration and assesses the positive impact that it is having on merchants through a range of mechanisms that support higher payment authorisation and cost-effective, streamlined checkout.
One of the most relevant modern payment innovations is payment orchestration. Even in its infancy, it has already had a significant impact on the eCommerce sector across the globe as signalled by a new report published by Market Research, showing that the payment orchestration market has been rapidly expanding at a CAGR growth rate of 25.75 per cent from 2021 to 2027. This growth has been triggered by the increasing needs of eCommerce companies to reach new markets globally with a structured acceptance ecosystem able to offer multi-PSP solutions. In line with current trends, it is projected to reach a substantial US$ 4797.96 million market size by 2027.
In light of orchestration’s importance to eCommerce and retailers, Axerve’s latest white paper explores the genesis of payment orchestration and the benefits it brings to merchants amid a burgeoning eCommerce sector characterised by an increasingly complex payment landscape with multiple PSPs and payment methods across multiple worldwide geographies that has fueled and necessitated the payment orchestration category’s growth. The white paper takes a focused look at the positive results of integration between multiple players in the payment flow, resulting in optimised payment processes in terms of efficiency, speed and authorisation rates, which when aided by payment orchestration are boosted significantly.
These wins for merchants and customers alike are evidenced by Axerve’s own aggregated client data and analysis of Axerve’s eCommerce clients which have adopted Payment Orchestra™, where Axerve reports that in the online fashion space, the choice of the optimal acquirer generated an increase in authorisation rates from a minimum of 5 per cent to a maximum of 9 per cent increase.
This boom in eCommerce is a challenge and opportunity for merchants as multiple providers across payment gateways, PSPs and acquirers, as well as multiple digital payment types such as cryptocurrency, Buy Now Pay Later (BNPL), contactless in-store payments such as SoftPOS, and eCommerce tokenisation, combine to form a complex web of payment options that payment orchestration platforms can streamline for merchants so they are empowered to engage with multiple payment forms at checkout while keeping their core focus on their primary business and customer experience.
A study by Accuity, a LexisNexis® Risk Solutions company, estimated that failed payments, as a result in part of problems in the management of payment flows, have cost the global economy US$118.5 billion in fees, labour, and lost business in 2020.
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