Maximize the ROI of your multi-vendor payments strategy with payment orchestration
Hoang LeungHead of Payment Products and Solutions at Very good securityexplains how merchants can maximize their ROI through payment orchestration when working with multiple payment service providers
According to S&P Global, 67% of merchants surveyed have adopted a multi-vendor payment strategy to gain flexibility to grow their business, improve customer experience and reduce costs.
However, the study also found that working with multiple payment service providers (PSPs) adds operational complexity and requires ongoing resources to realize the potential benefits.
Payment orchestration reduces multi-vendor complexity
Payment orchestration can reduce the complexity of a multi-PSP strategy by unifying and managing payment transactions between providers. Automation and intelligence streamline transaction routing based on rules and logic. For example, it can determine which payment provider offers the lowest processing fees for debit cards or support local payment options in a particular country.
Generally speaking, a payment orchestration solution enables merchants to:
Not All Payment Orchestration Providers Are Alike
Most payment orchestration solutions focus on optimizing one part of the payment flow, from transaction routing to reconciliation. To maximize your return on investment, consider a payment orchestration solution that optimizes the entire payment process, including payment, vaulting, and card lifecycle management.
Universal Payment Delivers a Consistent, Low-Cost Brand Experience
As a merchant, you know the importance of providing an exceptional customer experience. But working with multiple PSPs can lead to a disjointed brand experience for consumers across your vendors and payment channels (mobile, web, in-store). This is because each PSP has its payment technology. Plus, you’ll have to pay for this disjointed experience; every PSP payment requires your development and operational support.
Universal Payment provides a single entry point to your payment ecosystem by connecting your gateways, vendors, and third-party APIs that provide a consistent and customizable payment user interface across all browsers and devices and across multiple vendors. The added benefit is reduced development and operational costs.
Personal Vault with Aliasing lets you monetize your data
Most payment service providers offer their payment vault and token capabilities to capture, secure and store card data. It also allows vendors to access the data to gain insights that benefit their operations (such as improving authentication rates). However, some providers limit your access to data for your business. In addition, each PSP has its own vault, which leaves the data in a silo.
Payment orchestration solutions offer a single vault and token that gives you access to your data and reduces the complexity of using multiple vaults and tokens.
A more robust payment orchestration solution offers a vault with aliasing. With aliasing, you are able to secure and capture more data about your consumers, giving you better visibility. For example, you might find that a certain percentage of Black Friday shoppers also buy your deals on Cyber Monday. What do they buy every day? What are the prices? What are they not buying?
Alias vaulting also solves the problem of data fragmentation across multiple payment providers, limiting your ability to use the data to achieve different business goals. For example, data fragmentation on one PSP for your online transactions and another PSP for your in-store transactions makes it impossible to identify a customer across both channels. This can cripple marketing efforts such as rewards and customer loyalty, hampering the overall customer experience.
Card lifecycle management increases payment authorization rates
Look for a payment orchestration solution provider that offers multiple options for keeping card data up to date. It should include account update services, network tokenization with direct-to-network capabilities, and adaptive updating that updates cards that are not subscribed to any card lifecycle management technology. existing. The unique integration of these multiple approaches across all your vendors gives you greater control and cost-effective coverage across your entire payments ecosystem.
You are in control
With more payment service providers competing for your business, invest time in selecting the right payment orchestration solution to maximize the ROI of your multi-vendor strategy without giving up control of your data.
For more information, download Business engines for a multi-vendor approach to payment processing.
About Hoang Leung
Hoang Leung is the leader in Very Good Security (VGS) in-house payment. He is responsible for the overall card issuance and payment strategy at VGS. His experience includes launching a de novo program for credit card consumers and small businesses at East West Bank from 0 to 1. Prior to VGS, Hoang worked at Visa where he was responsible for the product platforms of consumer finance and also led product build and launch efforts. the Visa Infinite platform for high net worth cardholders. He also spent time at Wells Fargo where he launched the Campus Card program.
About very good security
Very good security (VGS) aims to secure the storage and exchange of payment data around the world while maximizing its usefulness. Through a Zero Data™ approach to data security, VGS enables companies to turn the burden of sensitive data into an asset by creating opportunities for more revenue through data monetization, new lines of business, a increased product innovation, omnichannel insights, fraud reduction and more. For more information about VGS, visit verygoodsecurity.com.