Guest Post: Why Payment Orchestration Is…

Airline losses are expected to narrow to -$9.7 in 2022, a net loss margin of -1.2%. While that’s a big improvement over the losses of $137.7 billion in 2020 and $42.1 billion in 2021, every little bit helps when it comes to getting the industry back to pre-pandemic strength.

Improving authorization rates and lowering transaction costs, even by a few percentage points, are sure ways to increase operating margins.

But in the ever-evolving travel payment landscape, making these improvements means integrating multiple payment partners for optimal processing, routing, and settlement.

The good news is that Payment Orchestration makes it easy for travel merchants to build a best-in-class payment solution and ecosystem.

Payment Orchestration unifies multiple payment capabilities and partners on a single platform to streamline payment transactions across all channels and markets. It also streamlines data flows and automates back-end processes.

Here are 10 ways Payment Orchestration can help airlines regain control of their payment strategy and quickly implement the right mix of payment methods, PSPs, and acquiring banks, all while removing friction at checkout for the airline. client.

Increase authorization and conversion rates

A payment orchestration platform overcomes many of the factors that limit authorization fees, so your airline can accept more payments and convert more customers.

Early on, offering customers preferred payment methods and checkout features like one-click checkout or split checkout improves conversion at checkout. On the back end, optimizing the routing of each card transaction and using intelligent fraud detection further increases authorization rates.

Reduce average payment transaction costs

Intelligent, dynamic transaction routing uses the optimal acquirer for each location to minimize interchange costs. A payment orchestration platform will allow you to implement a local buyers strategy and reduce cross-border transaction traffic by optimizing the routing of each transaction based on cost and acceptance rate.

Routing your card transactions to a limited number of acquirers may result in high transaction fees and suboptimal acceptance rates; Payment orchestration allows you to expand your network of acquirers and route each transaction to the correct acquirer.

Take back control of your payment strategy

Many airlines outsource payments to a single PSP or their PSS provider’s payment gateway, assuming that a relationship with a single provider will be easier. But PSP or PSS providers may not share their priorities or support their markets. This makes modifications cumbersome and expensive.

A payment orchestration platform means you don’t have to rely on third-party vendors, but can still avoid the need for in-house development. You determine your own payment strategy and can move quickly to execute it.

Bring new payment methods to market faster

Payment orchestration dramatically speeds up the implementation of new global or local payment methods, whether they are card-based or alternative payment methods (APM). Pre-integration is managed within the payment ecosystem connected to the platform itself. In a nutshell, a payment orchestration platform allows you to quickly select and activate payment methods that meet the preferences of travelers in international markets.

Give your customers a frictionless checkout experience

No matter what we’re buying, we’ve come to expect frictionless payments. A payment orchestration platform can help you deliver a seamless and consistent payment experience across all channels and make abandoned transactions less likely. By giving customers the payment methods and currency they prefer, one-click payments using stored cards, more discreet fraud controls, and the ability to easily resume checkout if interrupted, Payment Orchestration helps maximize conversions .

Automate your back-end financial processes

Automated payment reconciliation and chargeback management eliminate time-consuming and cumbersome manual processes. A good payment orchestration platform automatically receives settlement files from multiple PSPs and acquirers, standardizes data formats, and reconciles all card transactions and alternative payment methods, identifying any issues along the way.

It can also automatically analyze chargeback requests and prepare files to dispute fraudulent ones. With a payment orchestration platform, the complexity of working with multiple PSPs or acquirers does not extend to your back-end services; in fact, they are simplified.

Simplify and modernize your existing payment systems

The conventional approach to managing payments is often more tactical than strategic. That means new payment methods or functionalities are integrated on a channel-by-channel basis, as needed.

Time-consuming manual processes are still the norm. Payment orchestration platforms, on the other hand, reduce this complexity. They manage multiple payment partners, offer efficient and modern integration layers, unify payment processes, and free themselves from the legacy system limitations that hold airlines back.

Extract the most value from your data

Without a payment orchestration layer, customer and transaction data can become fragmented across systems, PSPs, and channels. This makes them difficult to analyze and manage.

When airlines get a unified view of all their payment transactions, regardless of the payment partner or channel involved, they can select the right payment partners, optimize real-time processing and personalize the customer payment experience.

Improve fraud protection

The right payment orchestration platform combines advanced pre-authorization detection with various fraud systems and rich customer data to improve fraud detection.

This type of smart fraud capability speeds up the checkout process for returning customers by eliminating unnecessary verification and reducing the burden on your internal fraud mitigation teams.

Normative compliance

To be PCI compliant, airlines must comply with all PCI guidelines, across all of their channels, and pass a comprehensive annual PCI certification process. Having a Payment Orchestration Platform allows airlines to transfer the burden and responsibility of PCI compliance directly to a Payment Orchestration partner.

For airlines looking to accelerate their post-COVID recovery, Payment Orchestration is by far the best way to simplify and modernize payment processes. By connecting with the right partner, they can optimize their payment strategy in a matter of months.

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