Interview

The opportunities and challenges associated with payment orchestration

Wednesday 6 March 2024 11:20 CET | Editor: Estera Sava | Interview

Jasper Goeman, VP Sales - EMEA at Nuvei, shares insights into the opportunities and challenges associated with payment orchestration.

 

What are the key factors contributing to the growth of the international ecommerce market in the last few years? What role did payment orchestration play?

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.

Payment orchestration platforms allow online businesses to better position themselves in a constantly changing ecommerce market – while navigating the rising complexity of accepting online payments. In the last few years, payment orchestration has undoubtedly been a contributing factor to the growth of ecommerce, enabling global expansion, improving customer experience, diversifying payment stacks, and mitigating fraud.

Why is it important for merchants to display local payment methods at checkout?

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.

To establish trust and appeal to local customers in new regions, online businesses should consider a payment orchestration platform that allows them to easily access and incorporate local payment methods into their checkout process. By customising the payment mix on a single payment page, businesses can cater to specific local demands. This approach not only fosters credibility and loyalty but also minimises cart abandonment, ensuring increased success rates and a higher return on investment.

What are the challenges that payment orchestration solves for businesses that are present in multiple regions?

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. 

To scale fast and experience rapid customer acquisition when entering new markets, ecommerce businesses need to have partners capable of providing relevant payment methods across various markets in a short timeframe.

When integrated effectively, what are the three main benefits of payment orchestration? 

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 

Payment orchestration reduces the complexity of internal processes, such as financial reconciliation, by simplifying overall operations, automating processes, and scaling down manual intervention. In addition, an orchestration layer can improve accuracy by improving financial reconciliation processes, enabling companies to optimise their resources and focus on their core business.

How can Nuvei help businesses better connect with their customers?

Payments have become more complex than ever. Businesses today want solutions tailored to the specific regions and verticals in which they operate – without sacrificing sales and revenue. Nuvei’s integrated orchestration platform allows merchants to get the best out of their existing tech stack, build onto it agnostically, as well as control and manage the entire payment process.

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.


About Jasper Goeman

Jasper has 15 years of commercial experience within a diverse range of companies. As Vice President of Sales at Nuvei, Jasper is currently building out his business development team across EMEA and is looking forward to having conversations about how Nuvei could help support businesses across the financial services industry with next-generation payment technology.

 

 

About Nuvei

Nuvei is a Canadian fintech company accelerating the business of clients around the world. Nuvei’s technology allows companies to accept next-gen payments, offer all payout options, and benefit from card issuing, banking, risk, and fraud management services. Nuvei connects businesses to their customers in over 200 markets, with local acquiring in 47+ markets, 150 currencies, and 669 APMs.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: payments orchestration, local payment method, payments , paytech, fintech, ecommerce, cross-border payments, retail, payment methods, checkout optimisation
Categories: Payments & Commerce
Companies: Nuvei
Countries: World
This article is part of category

Payments & Commerce

Nuvei

|
Discover all the Company news on Nuvei and other articles related to Nuvei in The Paypers News, Reports, and insights on the payments and fintech industry: