Payment Orchestration Platform: What Is It and How Does It Work?
The powerful payment orchestration capabilities are a genuine part of Spell’s platform designed to optimize and scale payments businesses. In this article, we explain what a payment orchestration platform is, and how it works.
Payment Orchestration Platforms (POPs), also known as payments orchestration layers (POLs), are taking payment solutions to a whole new level, and here at Spell, we provide the required tools as a part of the powerful white label platform for payments businesses.
What is a Payment Orchestration Platform?
Payment orchestration platforms are a software layer that sits between and connects your website to various payment service providers. At the same time, payment orchestration makes it significantly easier to handle payments from multiple countries and currencies.
Why is Payment Orchestration Needed?
A business might need to utilise several payment gateways and processors to receive payments from multiple channels, countries, regions, and dozens of currencies and optimise payment processing costs simultaneously.
Achieving these goals gets more straightforward and more cost-effective when you use a payment orchestration platform, such as Spell, because integrating with a payment orchestration platform means avoiding the need to connect and manage multiple PSP accounts.
Payments Orchestration Platforms aggregate and manage multiple payment processors and gateways within a complex tech stack from one software solution. POPs unite and provide one entry point and standard for everything — payment authentication, payment routing, refunds, settlements, and multi-currency accounts and optimise connection implementation costs to save business owners and eCommerce managers time and money.
Payment Orchestration vs Payment Gateway
If you wonder, “what is a payment orchestration platform?” compared to a payment gateway, we can answer that question now.
A payment gateway, also known as a payment service provider (PSP), provides APIs, SDKs, processes payments, initiates refunds, and generates settlements. At Spell, we manage everything payment-related end-to-end in a comprehensive software solution, including payment orchestration as part of our suite of tools for clients.
Businesses that need more than one payment gateway, or PSP, would benefit from a payment orchestration platform. Otherwise, you need to manage multiple payment gateways, making the whole payments tech stack significantly more complicated.
A payments orchestration platform sits above payment gateways. Instead of going to individual payment gateways to manage payments, you can oversee everything within the payment gateways from a payments orchestration platform (POP). All you need is to ensure every payment gateway is integrated within the POP, which is something we can do for you at Spell.
Business Case Example
Think of a company that serves several hundreds of thousands of purchases around two or more regions and has its roadmap booked for years because they are focused on growing. Then by powering up their growth with the payment orchestration platform, they can combine both: keep the IT roadmap and optimise operating costs.
In our experience, connecting several relevant channels can reduce card scheme interchange fees for some transactions by 2% and reduce the total cost of processing costs by around 1%.
Such businesses can receive connections from multiple acquiring accounts through a single API and annually optimise hundreds of thousands of operating costs.
Now let’s take a look at how payment orchestration platforms work.
Payment Orchestration Platform Explained: How Does It Work?
POPs, also known as payments orchestration layers, work as a conductor in an orchestra. Your customers will only hear the music, but these payment orchestration layers work hard to create a symphony behind the scenes.
Let’s work backwards from the point of sale, the checkout, to understand how payment orchestration layers work.
- A customer has a product they want to buy. They’ve got to the checkout and will pick from that the most relevant payment option for them;
- Customers’ payment details are sent securely to the appropriate payment gateway, depending on the parameters you set in the Spell platform. This can cover currency, amount, turnover, payment number, specific cardholder, IP address, and other parameters;
- At this point, the payment details are encrypted and sent to the payment processor and acquiring bank; these communicate to verify if a transaction can be authorised by the issuing bank or other payment service provider;
- In case of a payment failure, the payment orchestration service can re-route the payment to attempt again through another payment gateway. If approved, the customer has successfully purchased the product, increasing conversion rates for the eCommerce brand.
That’s just one example of how payments orchestration platforms work, making it significantly more accessible and more cost-effective to manage multiple payment gateways.
Payment Orchestration from Spell
Do you want to win in the payments business?
Do you or your clients do business on multiple continents or have other orchestration needs to optimise the business?
You need Spell. We can provide everything from a white label payment gateway to a full-service white label payments orchestration. Spell has you covered for all of your payment challenges.
We developed Spell to solve the usual problems companies encounter when using other payment gateways and orchestration platforms.
Spell supports payment orchestration depending on multiple parameters, set in the Spell platform. These can include the currency, payment method, amount, turnover, payment number, specific cardholder or IP, and other parameters supporting any optimisation scenario. Do you need something we haven’t covered? We can extend our solutions to handle your business requirements.
Spell has everything you would expect from an advanced payment orchestration platform: plugins, SDKs, recurring payments, routing. In addition, Spell comes with embedded billing, ordering links for online marketing campaigns, and numerous other unique features that you can’t find anywhere else.
Visa confirms that Spell is a PCI DSS Level 1 compliant platform, built on a robust AWS infrastructure, with an outstanding 99.999% uptime. With Spell, you’ve got everything you need to accelerate a payments business, including numerous integration methods, SDKs, and plugins that are essential in this game, including Shopify, Magento, WooCommerce, OpenCart, PrestaShop.
With Spell, instead of taking high-value, long-term tech investment risks, you can be operational with your payment orchestration platform in under 1 week!
Are you ready to find out more about our payment orchestration tools?
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Can I setup payment orchestration platform for my business with Spell?
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