From Payments Choice to Gateway Preference: Payments Orchestration 2.0 Helps Global Platforms Grow Sales
With the rise of eCommerce bringing more retailers than shoppers could ever exhaust, consumer-facing businesses of all types fear cart abandonment above nearly everything else. Never has it been easier for a consumer to find a similar product or experience at an alternative vendor, making the risk of an abandoned online purchase the highest it has ever been. Just as merchants are looking for ways to keep consumers engaged, marketplaces, or merchant aggregators, must do the same for their merchant customers.
Payments orchestration improves a business’s overall performance by connecting to various payment services and providing various benefits, including reducing payment declines and countering fraud. Merchant aggregators that employ payments orchestration can offer their merchant customers a more seamless checkout experience for their end users than competitors can, reducing the likelihood of cart abandonment and improving merchants’ revenues.
The “Payments Orchestration Tracker®,” a collaboration with Spreedly, examines how merchant aggregators can improve merchant retention by leveraging payments orchestration to provide fast and seamless payment gateways.
Around the Payments Orchestration Space
While payment service providers (PSPs) can offer crucial aid to businesses looking to accept digital payments, many merchants are disappointed in PSPs’ ability to support eCommerce. A recent survey found that 33% of merchants were dismayed with PSPs’ risk and transaction security, citing other pain points, including access to support services and transaction settlement times.
Marketplaces are a critical avenue for eCommerce sales, with 87% of merchants that leverage them reporting increased revenue. With this increased revenue comes more significant tax complications, however, and many merchants feel that marketplaces are not helping them enough in this department. Forty-five percent of merchants surveyed said that operators need to improve their finance and tax automation processes, as just 56% of operators manage tax liabilities on their merchants’ behalf.
For more on these and other stories, visit the Tracker’s News and Trends section.
Payments Orchestration Helps Aggregators Add the Best Value
Depending on their personal preferences, consumers need access to dozens of different payment methods, and aggregators need to ensure that their partners can provide these methods to their customers. Consumers who do not see their preferred payment methods available are much likelier to abandon a purchase in favor of another seller that meets their payment needs. Partnering with payments orchestration providers is the best way for aggregators to enable the right payment services for their customers.
To get the Insider POV, we spoke with Randy Guard, chief marketing officer and product officer at Spreedly, about why marketplaces need payments orchestration solutions to add the most value for their merchant partners.
How Payments Orchestration Can Help Marketplaces Retain Merchant Customers
Retailers are clearly concerned about losing customers due to a lack of digital payment options. This concern drives many to partner with platforms and marketplaces that can enable these experiences. It is less clear how the marketplaces can keep up with merchants’ growing payment demands. Payments orchestration can help aggregators provide value-add services for their merchants swiftly and easily, boosting merchant onboarding and retention.
To learn more about how payments orchestration can enable diverse digital payment options and help aggregators improve merchant retention, read the Tracker’s PYMNTS Intelligence.
About the Tracker
The “Payments Orchestration Tracker®,” a collaboration with Spreedly, examines how merchant aggregators can improve merchant retention by leveraging payments orchestration to provide fast and seamless payment gateways.