The world of payments is becoming increasingly complex to navigate for merchants, marketplaces and companies in general. Payments are of course a key part of the consumer experience, and coherent omnichannel, low friction of conversion is essential. Consumers often have varying payment method preferences and expectations even within one geography, which becomes even more complex when operating in multiple markets. Payment orchestration can help navigate this.
Full-stack PSPs (Payment Service Provider), such as Stripe and Adyen, are the dominant model nowadays. They offer the attractive concept of a “one-stop-shop” for merchants payments. However, for multinational enterprises the practical reality is still a complex combination of many PSPs and other value-added service providers (VAS) to integrate with.
This is where Payment Orchestration comes in. Payment Orchestration focuses on abstracting the complexity of managing and integrating with multiple PSPs and VAS. This is done by focusing on smart routing to improve transaction success and sales conversion, instead of focusing on processing or collecting.
While Payments has been the most invested segment of fintech and created the most valuable companies in fintech such as Paypal, Block (former Square), Stripe, Adyen, Klarna and many others, funding for Payment Orchestration startups is yet to take off. Most of the funding has been raised by Payooner and Very Good Security, which are not payment orchestration providers at their core.
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