The online sales boom is showing no signs of slowing down. In fact, global online retail sales are projected to surpass $8 billion by 2028, up from $6 billion in 2024. That’s a 31% increase in just a few years. To stay ahead, companies are scrambling to manage multiple payment methods, platforms, and providers across different markets.
A key strategy for many big brands, including Carrefour, Europcar, and Levi’s, is to use payment orchestration solutions. This technology lets online businesses manage multiple payment providers, anti-fraud tools, and acquiring banks from one central platform. It’s a game-changer, according to Jorge Sorial, Country Manager of Craftgate. “A smooth, reliable payment experience can make all the difference in a competitive e-commerce landscape,” he says.
So, how does it work? Payment orchestration reduces the complexity of managing multiple payment providers. It also minimizes the risk of relying on just one provider. With this technology, companies can route transactions dynamically based on performance, location, and other factors. This can boost conversion rates by up to 20% and reduce operational costs by 15-30% per transaction.
The numbers don’t lie. According to the Baymard Institute, around 55% of cart abandonments are due to payment issues. That’s why robust and adaptable payment solutions are crucial. Sorial notes that payment orchestration isn’t just for big corporations. Any online business, from large retailers to small and medium-sized enterprises, can benefit from this technology.
The trend is clear: the adoption of payment orchestration is on the rise. More than half of organizations currently manage five or more payment integrations, which increases operational complexity. Grand View Research predicts that the adoption of this technology will grow at an annual rate of over 24% between 2023 and 2030. It’s an essential tool for success in e-commerce.
What’s driving the growth of payment orchestration?
- Increasing online sales and the need for flexible payment options
- The complexity of managing multiple payment providers and platforms
- The importance of a smooth and reliable payment experience for customers
- The potential for higher conversion rates and reduced operational costs
As the e-commerce landscape continues to evolve, one thing is certain: payment orchestration will play a key role in the success of online businesses.