Our payment orchestration platform acts as a centralized hub that connects merchants to various payment methods and providers. When a customer initiates a payment, our platform routes the transaction to the appropriate payment provider and handles the entire payment flow from authorization to settlement. This helps merchants manage their payment operations more efficiently and provides customers with a seamless checkout experience.
Payment Orchestration mechanism
- Step 1: Payment method selection
When a customer makes an online purchase and reaches the payment step, they choose their preferred payment method from the available options. These methods can include credit cards, e-wallets, bank transfers, and more.
The customer’s payment information, such as the credit card number, is collected, and then the orchestrator transforms it into secure tokens through the process of “tokenization.” These tokens are unique references to the original payment information, allowing them to be shared among different Payment Service Providers (PSPs) on the platform if necessary, all while maintaining security.
- Step 3: Intelligent payment routing
Once the payment information is encrypted through tokenization, the orchestrator acts as a travel planner for payments, determining the best route for each payment. It takes into account several factors, such as currency, the customer’s geographical location, currency conversion rates, and other relevant information.
- Step 4: Transmission to payment service providers (PSPs)
The orchestrator sends the tokenized payments to the selected Payment Service Providers (PSPs). The PSP is the entity that actually processes the payment.
- Step 5: Authentication and authorization
The PSP receives the tokenized payments and initiates the authentication and authorization process. This involves verifying the validity of the payment, ensuring the customer has sufficient funds, and obtaining approval from the card-issuing bank.
- Step 6: Payment error handling
If a payment attempt fails with the first PSP, the orchestrator retains the authentication data and associated tokens. It immediately plans a new route and sends the payment to another PSP that may have a better chance of success.
- Step 7: Receipt of approval
Once a payment authorization is obtained, the acquirer (the bank or financial institution that processes payments on behalf of the merchant) sends an authorization code to the PSP and the merchant. This means the payment is approved, and the transaction can be finalized.
- Step 8: Transaction completion
The merchant receives confirmation that the payment has been approved and can then finalize the transaction. The customer also sees the confirmation of successful payment. The customer’s funds will then be transferred from their account to the merchant’s account by the issuer of the payment method.
In summary, orchestrated payment is a sophisticated process that ensures online payments are managed optimally to provide a seamless experience for customers, increase revenue for businesses, and minimize sales losses due to payment processing issues. It utilizes tokenization, intelligent routing, and error management to achieve these goals.
