In today’s world, it’s hard to imagine a prosperous business without online payments. They are implemented almost in every sphere. For the last years, several online payments industry trends have shaped up that entrepreneurs should take into account:
payment card is the most demanded payment instrument;
Google Pay, Apple Pay, and the whole mobile payments niche grow rapidly;
customers increasingly tend to opt for one-click payments.
Moreover, due to the growing complexity of the payment market and a vast amount of methods and providers, choosing the perfect option gets more challenging for business. The selection of supported payment methods and currencies varies from one acquirer to another. That’s why companies often need to connect multiple vendors to reach higher conversion and cost-effectiveness.
Why work with multiple providers and acquirers?
First of all, it’s crucial to understand that no provider can ensure the same processing quality for every transaction type. It depends on the payment method or card type involved, the amount, time, risk level of the transaction, and many other factors. One provider can offer better processing speed, higher success rates, and lower fees for a particular type of transactions. Still, there’s no chance of one provider offering equally brilliant results and conditions for all transaction types.
To achieve the best economic outcomes, the company needs to have multiple payment providers in its portfolio, both local and worldwide.
For example, if the company aims to increase conversion rate by region, the go-to strategy is connecting a bunch of local payment providers or acquirers. The more local partners it connects, the more payment methods it is able to support. Local payment providers charge lower fees for processing transactions within their region while offering higher rates approval for such transactions. This way, a business can reach its goal and increase conversion.
However, a multi-provider setup raises some challenges related to payment optimisation and management. The good news is that the remedies to them already exist.
What can businesses optimise in terms of online payment processing?
Let's take a look at this question from the side of key business metrics.
Costs. Supporting a bunch of providers implies using a lot of dashboards and accounts. Respectively, it takes a lot of time and effort to adapt the dashboard for the business needs, monitor payments, and fix occurring issues. It is better to consider a unified payment platform that brings everything together and converts manual work to automated processes, allowing the team to focus on developing new features, business expansion etc.
Conversion. Working with many payment providers equips you for a conversion rate increase, although it does not grant it on its own. That’s because many factors influence conversion, starting from checkout UI/UX quality and personalisation, and ending with technical aspects such as smart routing system, cascading, and tokenisation. Using these instruments, you’ll increase the payments success rate and make the payment process seamless and straightforward for the customer.
Scalability. A sure way to increase revenue is scaling to new markets. Still, the expansion is tied in with local payment issues. It’s no secret that customers worldwide prefer paying with their local currency and through well-known providers. By integrating both renowned global providers and locally loved ones, you can win the hearts of the audience of your new market.
Risks. A business needs to work with different payment providers not only to increase conversion but also to diversify risks. Even the most stable and trustworthy payment providers sometimes experience technical problems, making successful transaction processing impossible. If the company works with several providers, it always has a plan B if one provider faces downtime.
To sum up
Numerous issues may be improved and optimised in the online payments process, and the ecosystem provides all types of solutions.
For businesses, there are basically two options. The first is establishing and maintaining numerous infrastructures, cloud services, and security solutions, each narrowly focused and specialising in particular functionality. It brings you the tools for payment optimisation and keeps you fully in control, but such an infrastructure itself is hardly manageable.
That’s why it’s reasonable to choose the second option – ready-made payment platforms, like Corefy. They provide payment management and optimisation tools suitable for any business type out of the box. Additionally, some offer technical and customer support, share their payment expertise, and help businesses reach their goals faster through an efficient payment setup.
To optimise their payments, businesses today just need to decide which option works better for them.
About Denys Kyrychenko
Denys Kyrychenko, CEO and co-founder at Corefy, started his way in fintech 15 years ago while being a student.
During this time, he has helped to successfully launch multiple PSP and e-wallet solutions, such as Interkassa, Webmoney, RBK.Money, and RuPay. Denys developed a wealth of knowledge and understanding regarding fintech and online payments, and is an expert in market trends, product development, and strategic issues.
About Corefy
Corefy is a universal feature-rich payment orchestration platform for online businesses and payment institutions. The company’s key value is in the integration of payment providers and acquirers all around the world to bring a unified communication, control, and management interface for online businesses.
Corefy technical platform provides feature-rich functionality that connects and manages payment services, initiates, and processes transactions, collects and analyses payment data, and much more.
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