The pandemic brought merchant aggregators — marketplaces that onboard and provide crucial platforms for individual merchants — to the forefront of the payments ecosystem. Demand continues to generate new, more specialized digital marketplaces, but the proliferation of diverse payment systems worldwide means that platforms are subject to the same challenges of scale that once daunted their merchant customers.
Payments orchestration technology allows merchant aggregators to onboard new merchants swiftly by turning on new gateways simply and seamlessly. Orchestration’s flexible, regulatory-compliant payment services can help aggregators attract more merchants by readily supporting the payment gateways these customers demand, granting platforms a key differentiator when they seek to enter new markets.
This edition of the “Payments Orchestration Tracker®” examines why merchant aggregators must be ready to offer a broad menu of payment gateways and processors to accommodate merchants, and why payments orchestration is crucial to enabling this.
Around the Payments Orchestration Space
Payment services are a rapidly growing business segment, according to new research, which projects that small- to medium-sized businesses (SMBs) will spend $100 billion on these services by 2025. The study further predicts that eCommerce platforms will provide a significant fraction of these payment services, as 50% to 70% of digital commerce will be conducted through marketplaces such as Amazon and Mercado Libre. Acquirers will need to offer specific marketplace-tailored solutions to tap into this massive market.
Payments modernization is quickly becoming a top priority for businesses. A recent survey found that 72% of corporate executives say modernizing payments infrastructure — including the addition of new payment gateways and processing capabilities — could be groundbreaking for their businesses over the next three years. Thirty-seven percent of merchants agreed with this analysis, saying that they plan to make payment processing investments over the next year.
For more on these and other stories, visit the Tracker’s News and Trends section.
Giving a Leg Up to SMBs Through Payments Orchestration
Providing a smooth checkout experience to customers is crucially important for merchants of all sizes. Any obstacle in the payments journey, such as a declined payment or even a processing delay, can be the turning point between completing a sale and sending a customer to a competitor. In this month’s Insider POV, PYMNTS talked with Troy Pike, CEO of merchant aggregator platform Volusion, and Justin Benson, CEO of Spreedly, about how payments orchestration allows aggregators to help their small merchants contend with bigger rivals on a global scale.
How Payments Orchestration Can Help Aggregators Scale Quickly
Merchant aggregators serve a vital role in eCommerce, helping small businesses from retailers to restaurants by exposing merchants’ products to a wider audience, allowing them to scale. One of aggregators’ most essential functions is to provide their merchants with everything they need to operate in a digital-first world, beginning with payments. This month’s PYMNTS Intelligence explores how payments orchestration can help aggregators meet these payments goals.
About the Tracker
This edition of the “Payments Orchestration Tracker®,” a collaboration with Spreedly, examines why merchant aggregators must be ready to offer a broad menu of payment gateways and processors to accommodate merchants, and why payments orchestration is crucial to enabling this.
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