Payment Orchestration is no longer just a buzzword.
This is demonstrated in our Payment Orchestration (PO) whitepaper, for which we interviewed 100+ senior payment professionals from online businesses to find out what they look for in a Payment Orchestration Platform (POP).
While most of the data we gathered was in line with our expectations, there were three statistics which particularly stood out. These surprising data points suggest that many businesses do not yet realize the potential of integrating an orchestration layer, which could unlock a multitude of revenue-boosting opportunities when implemented by an experienced PO provider.
This statistic stands out for obvious reasons: all businesses are looking to enhance conversion rates. So why aren’t more of them prioritizing this objective when looking to implement a POP? Perhaps there is some work to be done on educating businesses as to how a POP can boost their bottom line.
By implementing an orchestration layer, online businesses could increase their revenue in the following ways:
Optimizing approval rates
Although alternative payment methods are gaining momentum, cards still made up 32% of the global Ecommerce transaction value in 2022. This indicates that adopting a global yet hyper-localized approach when it comes to acquiring is key. A Payment Orchestration platform would enable businesses to connect into multiple acquirers in different regions, as well as route transactions to the most relevant and cost-effective acquirer automatically. The increase in successful approval rates through implementing a POP could provide your business with valuable revenue generating opportunities.
Offering a wider range of payment methods
In 2022, 9% of US online shoppers abandoned their carts because their preferred payment method was not available. Implementing a POP allows businesses to select and configure the right mix of payment methods – whether traditional, alternative global or local – all on one page. This would enable companies to scale into new markets with ease, accelerating growth and revenue.
Up until recently, reporting and reconciliation have been viewed as a value-add services. However, the global reconciliation software market alone is projected to grow from $1.28 billion in 2023 to $3.40 billion by 2030. This rise can be attributed to the huge increase in online sales since the pandemic as well as the steep rise in fraud related losses that continues to plague online retailers and their customers. A successful POP could empower online businesses with valuable insights, fraud prevention capabilities, and improved customer experience, leading to a significant increase in sales and revenue.
This statistic is surprisingly low and suggests that fraud reporting features could be a key consideration for those businesses looking to implement a POP. In 2022, losses due to online payment fraud were estimated at 41 billion U.S. dollars globally. With transparent and continuous access to fraud data via a POP, online businesses can not only protect themselves from fraud, but also prevent it before it occurs, enabling them to accelerate their revenue in the process. In addition, implementing a POP can give businesses the opportunity to re-evaluate their risk rules and set the right ones to correctly flag true fraudulent transactions without punishing the legitimate ones, ensuring their customers remain loyal and continue purchasing their products.
The key to global expansion
While surprising, the statistics discussed here highlight the significance of an orchestration layer as a solution that optimizes online payment processing from end-to-end. Whether an online business is struggling with access to fraud data or constructive reporting, a POP can provide transparency and valuable business insights, while also accelerating revenue. An experienced Payment Orchestration provider empowers businesses to use payment complexity to their advantage, enabling growth into new markets as well as all the benefits that come with it.
It is important to note that the benefits of Payment Orchestration go far beyond the points outlined here. Read our study on Payment Orchestration to understand more about why so many businesses are looking to implement a POP, as well as valuable insights on the implementation process.