As e-commerce operations expand globally, managing diverse payment methods becomes increasingly complex. Simply connecting to banks via a gateway is often not enough; businesses need to organize and optimize this flow. This is where Payment Orchestration comes in. It takes the connectivity of a gateway and adds a layer of smart management.
What Does Payment Orchestration Mean?
Payment orchestration encompasses the entire payment lifecycle. Built on top of essential payment gateway technology, this platform efficiently manages the payment processes of companies of various scales. It acts as a central command center, directing the flow of payments that the gateway transmits.
Acting like conductors, payment orchestration tools manage incoming payment requests, ensuring the harmonious interaction of various payment instruments, thus providing businesses with a competitive advantage.
So, what is payment orchestration? In its simplest form, payment orchestration refers to the multi-layered product technology enabling online payment-receiving businesses to efficiently and profitably manage their payments using various routing mechanisms. Additionally, it encompasses different solutions such as closed-loop card storage, closed-loop wallets, or fraud prevention.
The Differences Between Payment Orchestration and Payment Gateway
The product technology we offer as Craftgate is fundamentally Payment Orchestration. In this regard, Craftgate is a comprehensive platform that includes payment gateway technology as a core feature. While a gateway provides the necessary technical pipe to banks, Orchestration manages what goes through that pipe to maximize profit and success rates.
In international payment jargon, payment orchestration and payment gateway represent different value propositions. Abroad, payment service providers that offer virtual POS services and take on the task of fund distribution may also define themselves as a “payment gateway.” For this reason, our article “What is a Payment Gateway? How Does It Work?” emphasized that businesses can benefit effectively from payment gateways. Still, it depends on the technological advantages of the preferred payment gateway product.
As a reminder, while keeping this information in mind, we can list the points where the concepts of payment gateway and payment orchestration diverge (in the globally accepted form):
- Payment gateways can be considered tools that facilitate the transmission of customer information wanting to pay to virtual POS or payment institutions agreed upon by businesses. They are more static technologies with more static usage internationally.
- On the other hand, payment orchestration tools are dynamic technologies that enable online payment processes to be carried out most efficiently and profitably for businesses. As we will delve into later, payment orchestration technologies provide companies with the following advantages:
Reducing expenses by directing payments to the most advantageous payment method in terms of commission.
Providing the opportunity to use solutions such as payment through links and QR codes, fraud management, closed-loop wallets, or stored cards.
Increasing customer satisfaction in the payment process by offering a seamless payment experience. - Payment orchestration platforms are tools that can include payment gateway technology. Technologies providing payment orchestration (e.g., Craftgate) do not handle funds or distribute money and do not provide virtual POS services.
Advantages of Using Payment Orchestration
According to a study, global online retail sales are expected to reach $6.51 trillion in 2023, $7.36 trillion in 2024, and $8.5 trillion in 2025.
Considering this potential in the online world, it is undoubtedly undesirable for any business to experience potential revenue loss simply because they cannot efficiently manage their payment processes in this market.
In a global online seminar titled “Payment Orchestration: The Future of Payment Strategy,” a survey among companies revealed the following expectations regarding their online payment processes:
- Easily integrate their preferred payment methods into their systems.
- Streamline operational processes by managing all payment processes through a single panel.
- Reduce the commission fees paid with payment routing mechanisms.
- Manage fraud prevention processes through the same panel.
- Provide opportunities for customer loyalty and enhanced customer experience, such as allowing customers to shop with stored cards or closed-loop wallets.
Regardless of scale, every business’s primary goal is to increase its market share and grow. In this context, companies aspiring to have their payment processes contribute to this growth expectation can seize the opportunity to gain a competitive advantage through payment orchestration.
One-Stop-Shop Payment Orchestration: Benefits Provided by Craftgate to Merchants:
Thanks to Craftgate’s payment orchestration technology, which integrates gateway capabilities with smart management, member merchants can:
- Fulfill all their needs in online payment processes.
- Manage their existing payment methods from a single point and easily access new payment methods.
- Receive payments even during virtual POS interruptions or systemic payment errors.
- Enhance business turnover and payment success rates with a seamless payment experience.
- Reduce commission expenses by directing payments to the virtual POS with the lowest agreed-upon commission rate.
In addition to the above advantages, Craftgate’s payment orchestration enables member merchants to offer a smooth shopping experience to their customers, thereby elevating their brand’s customer satisfaction to the highest level.
You can explore our merchants’ experiences with Craftgate payment orchestration here.
Things You Might Wonder About Craftgate Payment Orchestration?
To concretize the advantages businesses in the online payment space can gain with payment orchestration, we aim to elaborate on the value propositions we offer at Craftgate by answering the following questions.
How Craftgate Payment Orchestration Increases Businesses’ Revenue?
As known, there can be real-time disruptions in bank virtual POS or payment institutions, and during this time, businesses cannot receive online payments. From the end consumer’s perspective, we can consider the situation as follows: a customer who wants to shop from the website likes a product and then adds it to the cart. When they click the “pay” button to complete the payment, an issue arises, and the payment fails.
Due to this issue, customers experiencing a disrupted shopping experience at the payment step often need help to abandon their carts. This results in revenue loss for the brand. The higher the daily payment conversion volumes of businesses, the higher the revenue loss during these disruptions.
This problem, commonly experienced by retail brands, is not encountered by Craftgate member merchants. This is because when there is any virtual POS disruption, Craftgate’s Autopilot feature comes into play, directing payments to the working virtual POS at that moment. Thus, Craftgate prevents member merchants from experiencing revenue loss due to interruptions.
In addition, the Payment Retry feature ensures that if the responding virtual POS remains unresponsive for a certain period, the error code received during this time is recorded. Meanwhile, the payment is directed to another provider, which is advantageous for the member merchant. Even when no response is received for payment from virtual POS or payment institutions due to systemic errors, it detects this and eliminates potential revenue loss.
How Can Businesses Reduce Commission Expenses with Craftgate Payment Orchestration?
Craftgate’s Payment Orchestration Platform utilizes its underlying gateway connections to route payments like a conductor, ensuring the payment goes through the virtual POS with the most advantageous commission for the member merchant. Craftgate’s Smart and Dynamic Payment Routing feature handles this entire process automatically without requiring member merchant’s intervention. It is sufficient for the member merchant to have determined the criteria for this routing.
Thus, member merchants obtaining the opportunity to receive payments through the virtual POS with the lowest commission reduce their commission expenses, gaining a cost advantage.
For more detailed information on the advantages of receiving payments from the lowest commission virtual POS, refer to our article “Routing Payments to the Lowest Commission Virtual POS.”
How Does Craftgate Payment Orchestration Provide Advantages for Businesses in International Processes?
When a brand expands its operations internationally, the correct structuring of online payment processes in the target market significantly impacts the success achieved in that country. Craftgate merchants can make agreements with high acceptance rate organizations in their target markets, such as Stripe, Payoneer, PayPal, AliPay, Klarna, Afterpay, Clearpay, Braintree, and Paytabs, as they move their operations to each country.
Craftgate becomes the first choice when they want to receive payments in different currencies worldwide. Besides the Turkish Lira, they can receive payments in 9 different currencies, including the US Dollar, Euro, British Pound, Brazilian Real, Argentine Peso, Chinese Yuan, United Arab Emirates Dirham, and Iraqi Dinar.
Note: The international payment organizations integrated through Craftgate and the currencies in which payments can be received are constantly updated. You can access our current integrations here.
While discussing options in the payment world, Craftgate also comes to the aid of merchants who want to offer alternative payment methods to their customers. Craftgate enables merchants to receive payments with alternative payment methods such as meal cards like Sodexo and Edenred or digital wallets like Papel, GarantiPay, and MasterPass.
What Are the Other Solutions Included in Craftgate Payment Orchestration?
Craftgate merchants are provided with various solutions within the Craftgate Payment Orchestration to elevate the shopping experience for their customers to the highest level at the payment stage and meet security needs in payment processes from a single point. For example, merchants who want to design Customer Loyalty Programs can benefit from Closed-Loop Card Storage and Closed-Loop Wallet features. Moreover, Craftgate provides a security option within the card storage processes as it complies with the PCI-DSS-1 standard. Merchants who can design a Fraud Management suitable for business dynamics with flexible rule management can offer their customers easy Payment by Link and QR Codes.
Conclusion
Brands thriving online prefer to leverage payment orchestration technologies to stay competitive, meet customer demands for a seamless payment experience, manage payment workflows, and enhance the overall process.
If you also want to gain an advantage in your target market by utilizing payment orchestration technology for your business, feel free to contact us!
