Over the last ten years, the ecommerce landscape has evolved from a relatively straightforward concept to a complex ecosystem involving multiple devices, partners, and channels. In 2021, global online retail sales amounted to approximately USD 5.2 trillion, a figure expected to grow by 56% within the next few years.
Expectations for product customisation, mobile-optimised searches, quick checkout processes, and hassle-free delivery are growing rapidly as customers look for convenience at every turn. But as the sector matures, the amount of competition serving these expectations rises, along with the complexity of bringing these solutions to market.
Online payments are witnessing a remarkable shift, with consumers in some regions gravitating towards alternative payment methods at an unprecedented speed. In the APAC region alone, an astonishing 69% of online payments were made using a digital wallet in 2022.
When it comes to customer experience, 85% of UK-based shoppers consider it very important to have their preferred payment method available, while 49% of both US and UK consumers will abandon their purchases if they can’t use their local payment option.
Companies with global growth ambitions need to optimise their businesses quickly, to enter new markets and regions at speed.
Using a payment orchestration solution, ecommerce businesses can adapt their checkout process to accommodate each region’s most relevant payment methods, display amounts in local currencies and languages, while removing irrelevant fields. Moreover, integrating an orchestration layer allows companies to direct those transactions to payment partners who specialise in their business type and region, reducing payment acceptance costs and minimising cart abandonment.
In addition, payment orchestration can help businesses remain compliant across regions with varying regulations, simplifying the process of conducting cross-border transactions.
In addition to ease in scaling, other benefits of payment orchestration include revenue enhancement, cost reduction, and internal efficiency.
Revenue enhancement
As well as offering multiple forms of payment for consumers, payment orchestration can ensure optimised approval and conversion rates by increasing the success of transactions with the most relevant acquirer and automatically routing transactions to the most cost-efficient payment processor. With an integrated solution, businesses also benefit from aggregated real-time payment analytics and batch data broken down by payment method, card brand, and geography. This helps brands understand why customers fail to complete their purchases and optimise their payment flow to lower cart abandonment rates.
Cost reduction
Our recent study on payment orchestration shows that 56% of businesses rank decreasing payment acceptance costs as their top objective in implementing payment orchestration. With the right platform, businesses can refine all processes in the payment cycle to minimise costs – from seamless integration of local payment methods to smart transaction routing, to taking a strategic approach to risk management.
Internal efficiency
Nuvei’s modular, flexible, and scalable technology allows companies to accept next-gen payments, offer all payout options, and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in over 47 markets, 150 currencies, and 634 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.
This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2023–2024, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally.
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