Global Payment Orchestration Market Expected to Grow 20% Annually

When an enterprise starts doing B2B trade with a company in another nation, the seller quickly finds that it must meet the shopper’s payment preferences, accommodate local or regional regulatory requirements and manage other cross-border payment frictions.

To address these pain points, a growing number of businesses are looking for support from a payment orchestration platform (POP). The global market for such platforms is expected to grow 20% annually between 2021 and 2026, according to Payment Orchestration for Global Commerce, a PYMNTS and Payoneer collaboration. POPs are catching on because they unify all components of a business’s payment flows into a single technology layer.

“By providing one holistic environment for managing payments, payment orchestration platforms help to remove integration complexity and enable merchants to add or switch payment partners in one click,” said Payoneer Chief Operating Officer Keren Levy.

Unifying All Components of a Business’s Payment Flows

POPs make it easier for merchants to localize their checkout options from region to region, Levy said, “allowing customers in each one to use their preferred payment methods. [This] results in a higher conversion rate while increasing customer loyalty and satisfaction.”

By unifying each component of the payment flow into a single layer, a POP helps the business manage its payment operations by providing a single end-to-end access point for payment decision-makers to track and route their payment flows.

The platforms can also offer the operational flexibility that enterprises need to smoothly alter their payment stacks, adding dynamic checkout options, enhancing risk management or offering the payment options that are in demand in a specific market.

Such control can be especially useful across borders, where payment flows are notoriously multifaceted and complex.

Alleviating Growing Pains

When entering a new market, for instance, international enterprises must add payment methods native to these markets to their payment stacks while ensuring local regulatory compliance. This often means finding new payment service providers (PSPs), payment methods, acquirers and risk providers to deliver the services that establishing a local presence requires.

In addition, legacy cross-border payments practices like correspondent banking and manual processing further complicate this already complex process, and uncontrollable variables like a payment provider’s sudden downtime or new regulatory compliance add even more friction.

Levy said POPs can help alleviate many of these growing pains.

“When payment orchestration is combined with a comprehensive payout solution, like Payoneer’s mass payout services, the result is a truly end-to-end journey for marketplace businesses — from accepting payments from customers to making smooth mass payouts to sellers across 190 countries and territories and in more than 100 currencies,” she said. “This way, merchants have access to a full payment toolkit, making sure that cross-border payments aren’t a challenge but rather an opportunity.”