New research from Nuvei and Edgar, Dunn & Company highlights the opportunities Payment Orchestration bring to revenue growth
Nuvei Corporation, the Canadian fintech company, has revealed that three-quarters of eCommerce businesses (75%) say they need greater levels of support to optimize their payments function due to a reliance on an increasing number of payments providers.
This data is available in Nuvei’s latest whitepaper Payment Orchestration: A practical guide to optimizing payment performance. Nuvei partnered with Edgar, Dunn & Company (EDC) to survey over 100 international businesses across a variety of verticals that sell online to consumers.
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Capitalizing on the benefits of the multi-vendor model
In an increasingly complex landscape, more than half (54%) of online businesses are now using at least six payment providers to optimize their checkouts as they look to scale into new markets, win new customers, and grow revenue. A third (33%) have direct acquiring relationships with at least five banks.
The rise of this multi-vendor model is a direct result of eCommerce businesses understanding that there is a real opportunity to accelerate growth. Harnessing the power of best-in-class payments technology in every market they operate, and for every relevant payment method, is critical for businesses to optimize their payments performance.
But businesses are also aware that a lack of coordination and optimization of these complex set ups may have a negative impact on their revenues as well, including permanently losing customers. The research shows that 59% of businesses believe that customers who have experienced a false decline will not give businesses a second chance. It also shows that alternative payment methods are becoming more important to eCommerce, with only 23% of online businesses’ checkouts now have three available payments methods or less.
Understanding Payment Orchestration
There is a clear role for payments orchestration in providing the control online businesses need to effectively optimize their backend payments flow. Without Payment Orchestration businesses are unable to set specific and intricate rules for payments acceptance to boost conversion and revenue, and they also do not have full visibility of their performance with which to make informed decisions.
This is evident in the whitepaper research. Businesses told Nuvei they have a variety of specific motivations for implementing a Payment Orchestration solution, including a reduction in the cost of payment acceptance, greater efficiency internally, and a wider acceptance of more payment methods. Many merchants intend to optimize payment conversion with smart routing capabilities to increase revenue.
Nuvei’s practical guide helps eCommerce businesses implement and get maximum value from their Payment Orchestration Platform (POP). When integrated effectively, Payment Orchestration can enable businesses to improve their overall payment performance through enhanced efficiency, security, flexibility, and scalability.
Nuvei Chair and CEO Philip Fayer commented on the research: “Our mission is to connect our customers to their customers, wherever they are and however way they want to pay. Offering an industry-leading Payment Orchestration Platform is critical to doing that successfully. It is clear from our research that more and more businesses recognize the need for orchestration, but also that many are still struggling to understand what this means in practice. This whitepaper provides excellent insights into implementing Payment Orchestration effectively.”
Peter Sidenius, Edgar, Dunn & Company CEO, added: “It is key for businesses to manage payments efficiently as it is the last step in the purchase process. Payments have become increasingly complex, especially for businesses with various subsidiaries, operating in multiple geographies, selling in different currencies and offering different payment methods. Payment Orchestration is considered by an increasing number of businesses as the solution to retain control of their payment stack. It is a major driver to generate additional revenue, optimize payment acceptance cost and increase operational efficiency.”
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