Payment platforms are the unsung heroes of the global e-commerce revolution. This eliminates the need for marketplaces and merchants to set up and manage their own payment infrastructure. This process required building a huge in-house team. This allows them to focus on what they do best. In other words, the customer. Experience innovation and supply chain excellence.
However, using third-party payment technology is not a panacea. While preferable to building from scratch, this approach comes with its own set of challenges. Most notably, the market owner demands that he be removed from the flow of funds three or four times as much. For example, a UK company looking to access Indonesia could connect to a US fintech on top of a processor in Singapore, itself on top of a local PSP in Indonesia, and then a major payment in the country. connected to the way .
Today, businesses and markets are using payment orchestration technology to manage the complexity inherent in this hodgepodge of intermediaries. The orchestration layer facilitates the integration of various parties into a consistent system, optimizing the user’s experience. With an orchestration layer in place, customers should be able to easily purchase goods from abroad through e-commerce sites, and merchants should be able to manage basic transactions with relative ease.
But the problem is: No matter how good the orchestration layer is, the underlying complexity involved in managing multiple intermediaries and hundreds of APIs across different jurisdictions with varying legal requirements and often outdated payments You can’t change the length. infrastructure. As a result of this complexity, international payments become a costly problem and create significant operational friction.
Businesses are understandably concerned. First, this friction can affect fluidity. 1 study found Cross-border sales account for about 26% of the average total for UK and US businesses, but receiving payment for these transactions takes 55% longer than for domestic sales. For some merchants, the situation is so dire that it puts off international growth entirely. According to Wise’s research, 51% of growing companies are discouraged from expanding internationally due to the complexity of managing international payments.
Another key challenge is that while merchants can save time by accessing off-the-shelf connections through the orchestration layer, they cannot build economies of scale that bring savings. This is because the orchestration layer is unregulated and cannot stay in the flow of funds. Merchants must pay for each provider they use per connection. Therefore, relying on network upon network becomes incredibly expensive for a rapidly growing business.
As a result, more and more companies are looking under the hood and discovering what they’ve sacrificed in order to quickly access connecting technology.
Watch our recent FMLS22 session on the future of payments.
From orchestration to curation
International payments clearly require creative disruption, and this is where the new concept of payments “curation” shows great promise. Reduce the complexity of payments by using APIs to cover all of a merchant’s payment needs.
It provides businesses with a complete payment stack that integrates payment acceptance, payment accounts, and payments, and provides the ability to manage cross-border payments, but does not charge merchants for these services. Only once.
While payment orchestration hides complexity and actually provides the cohesive veneer for a series of separate but connected transactions, payment curation is responsible for connecting, contracting, and intricate work. It offers a truly simplified and cohesive approach with payment curation providers. Building a tech stack. This holistic approach saves merchants time and money, allowing them to fully focus on their core business operations.
The Global Payments Market Continues to Grow, Exceeding $2.5 Trillion in Revenue estimated by 2025, businesses that employ payment curation will be a great place to thrive. Beyond providing a simple payments layer, Payments Curation absorbs risk, addresses multi-regional regulations, builds infrastructure, and removes the complexity of managing payments in-house.
Given the current economic climate, these are benefits that every merchant should actively seek.
Payment platforms are the unsung heroes of the global e-commerce revolution. This eliminates the need for marketplaces and merchants to set up and manage their own payment infrastructure. This process required building a huge in-house team. This allows them to focus on what they do best. In other words, the customer. Experience innovation and supply chain excellence.
However, using third-party payment technology is not a panacea. While preferable to building from scratch, this approach comes with its own set of challenges. Most notably, the market owner demands that he be removed from the flow of funds three or four times as much. For example, a UK company looking to access Indonesia could connect to a US fintech on top of a processor in Singapore, itself on top of a local PSP in Indonesia, and then a major payment in the country. connected to the way .
Today, businesses and markets are using payment orchestration technology to manage the complexity inherent in this hodgepodge of intermediaries. The orchestration layer smoothly integrates various parties into a coherent system to optimize the user’s experience. With an orchestration layer in place, customers should be able to easily purchase goods from abroad through e-commerce sites, and merchants should be able to manage basic transactions with relative ease.
But the problem is: No matter how good the orchestration layer is, the underlying complexity involved in managing multiple intermediaries and hundreds of APIs across different jurisdictions with varying legal requirements and often outdated payments You can’t change the length. infrastructure. As a result of this complexity, international payments become a costly problem and create significant operational friction.
Businesses are understandably concerned. First, this friction can affect fluidity. 1 study found Cross-border sales account for about 26% of the average total for UK and US businesses, but receiving payment for these transactions takes 55% longer than for domestic sales. For some merchants, the situation is so dire that it puts off international growth entirely. According to Wise’s research, 51% of growing companies are discouraged from expanding internationally due to the complexity of managing international payments.
Another key challenge is that while merchants can save time by accessing off-the-shelf connections through the orchestration layer, they cannot build economies of scale that bring savings. This is because the orchestration layer is unregulated and cannot stay in the flow of funds. Merchants must pay for each provider used per connection. Therefore, relying on network upon network becomes incredibly expensive for a rapidly growing business.
As a result, more and more companies are looking under the hood and discovering what they’ve sacrificed in order to quickly access connecting technology.
Watch our recent FMLS22 session on the future of payments.
From orchestration to curation
International payments clearly require creative disruption, and this is where the new concept of payments “curation” shows great promise. Reduce the complexity of payments by using APIs to cover all of a merchant’s payment needs.
It provides businesses with a complete payment stack that integrates payment acceptance, payment accounts, and payments, and provides the ability to manage cross-border payments, but does not charge merchants for these services. Only once.
While payment orchestration hides complexity and actually provides the cohesive veneer for a series of separate but connected transactions, payment curation is responsible for connecting, contracting, and intricate work. It offers a truly simplified and cohesive approach with payment curation providers. Building a tech stack. This holistic approach saves merchants time and money, allowing them to focus on their core business.
The Global Payments Market Continues to Grow, Exceeding $2.5 Trillion in Revenue estimated by 2025, businesses that employ payment curation will be a great place to thrive. Beyond providing a simple payments layer, Payments Curation absorbs risk, addresses multi-regional regulations, builds infrastructure, and removes the complexity of managing payments in-house.
Given the current economic climate, these are benefits that every merchant should actively seek.