The COVID-19 pandemic has brought merchant aggregators to the forefront of the payments ecosystem. These marketplaces play a crucial role in onboarding and providing platforms for individual merchants, but they face the same challenges of scale that their merchant customers once did. To overcome these challenges, merchant aggregators are turning to payments orchestration technology to help them onboard new merchants and provide a broad menu of payment gateways.
Payments Orchestration Technology
Payments orchestration technology is a flexible and regulatory-compliant payment service that allows merchant aggregators to onboard new merchants quickly and easily. By turning on new gateways seamlessly, aggregators can readily support the payment gateways their customers demand, giving them a key differentiator when they seek to enter new markets. Payments Market Trends
According to new research, payment services are a rapidly growing business segment. The study projects that small- to medium-sized businesses (SMBs) will spend $100 billion on these services by 2025. 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. This means that acquirers need to offer specific marketplace-tailored solutions to tap into this massive market. Payments modernization
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. Benefits of Payments Orchestration
Payments orchestration technology provides several benefits for merchant aggregators. One of the most essential functions of aggregators is to provide their merchants with everything they need to operate in a digital-first world, beginning with payments. Payments orchestration can help aggregators meet these payment goals by providing a smooth checkout experience for customers, which is crucial for merchants of all sizes. Final Thoughts
Merchant aggregators must be ready to offer a broad menu of payment gateways and processors to accommodate merchants, and payments orchestration is crucial to enabling this. Payments orchestration technology provides several benefits, including the ability to onboard new merchants quickly and easily, support the payment gateways customers demand, and provide a smooth checkout experience. As the payments market continues to grow, payments modernization will become increasingly important for businesses, and merchant aggregators will need to leverage payments orchestration to stay competitive.
