Payment-Orchestration: How high-growth online merchants can become more innovative and independent through a holistic approach.
It was only at the beginning of this year that ibi research found out in their study of payment and finance processes in B2B e-commerce that payment and finance processes in the companies examined “have the potential for optimization in many areas.” For example, the lack of multi-channel solutions in 28% of companies and missing process documentation in just under a third of those surveyed. We address these and other problems, as well as potential solution approaches in our new whitepaper about payment orchestration.
Although the whitepaper will not officially be published until March 3rd, we would like to give you a first insight below.
Payment processing is usually of secondary importance to online merchants and is seen more as a necessary evil than a priority. Today, however, innovative, and fast-growing companies do not regard payment processing as a standard service but as a competition-critical business process.
Nevertheless, many online merchants still rely on standard solutions from individual payment service providers (PSP, payment service providers) for complex payment processing. However, because these want to achieve the highest possible profit margin, online retailers are confronted with a solution that offers little or no room for adjustments and cannot be customized to suit them. Besides, there are risks when using a single PSP due to failure and possible vendor lock-in.
Driven by these disadvantages, large online retailers like the Otto Group or real.digital have brought payment processing back into their premises by setting up an internal PSP. Yet, this procedure is very resource-intensive and therefore only makes sense for those merchants who have annual sales in the billions.
With the so-called payment orchestration (PO), a new concept has emerged in recent years that addresses merchants’ urgent need for independence and innovative solutions. With payment orchestration, you develop a customer-specific solution that consists of technical and functional components.