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Payment Orchestration: Addressing Critical Challenges in Digital Commerce

DEUNA

In today’s digital commerce landscape, efficient and secure payment processing isn't just a backend task—it's a critical, strategic component for driving business profitability.

For consumers, completing an online transaction can feel increasingly straightforward. However, merchants grapple with multiple complex challenges: integrating with various payment providers, maintaining operations stable without succumbing to chargebacks, and keeping healthy payment acceptance rates.

Every failed transaction is a lost sale and a setback in the ongoing pursuit of maximizing results. According to LexisNexis, declined payments could cost global businesses up to $118 billion in losses annually.

Additionally, the demand for seamless, frictionless shopping experiences mounts pressure on commerce leaders, who must evolve and adapt to new payment technology trends without incurring excessive costs.

In this challenging context, payment orchestration emerges as a comprehensive solution that transforms complexity into efficiency, transparency, and growth.

What is Payment Orchestration?

A payment orchestrator acts like a traffic controller, intelligently routing transactions among multiple players in the payment ecosystem (acquirers, processors, alternative payment methods, fraud prevention tools, etc.) to optimize profitability and meet business goals. How does this work?

1. Dynamic Routing to Optimize Approvals and Reduce Costs - Can declined payments be recovered?

In a market like Mexico, where 30% to 35% of online payments are declined (AMVO), a payment orchestrator empowers merchants to create tailored payment routes based on specific rules or parameters (transaction amount, product type, customer location, etc.). This adaptability enables merchants to…

  • Route transactions to specific payment providers to increase acceptance rates. Merchants can also configure two or more alternative gateways to retry failed payments automatically.
  • Optimize routes to providers with optimal processing fees based on transaction types, effectively reducing costs.
  • Maximize security by routing payments to fraud prevention engines and adding authentication layers (e.g., 3DS), reducing exposure to chargebacks and fraud losses.

2. Centralization and Automation of Payment Reconciliation and Data Management - End-to-End Payment Traceability

A payment orchestrator simplifies the operational burden of managing multiple providers separately, particularly when dealing with fragmented data. These platforms centralize transactional information, offering consolidated, standardized data for automated reconciliation without manual effort.

This capability is especially critical given that, according to PwC, companies can spend up to 30% of their time on manual reconciliation processes.

With a payment orchestration platform, businesses gain end-to-end visibility into every transaction, along with powerful search and filtering tools to track transactions and related events. This comprehensive approach enables quicker, more informed decision-making.

3. Integrate Payment Methods and Providers at the Click of a Button - Can a business offer the 100+ payment methods that exist just in LATAM?

A robust payment orchestration platform like DEUNA streamlines access to over 200 payment service providers, acquirers, alternative payment methods, and fraud prevention tools through a single integration—reducing technical complexity to just a few clicks.

For example, in Latin America, there are hundreds of payment methods that vary across countries and according to consumer preferences. With an orchestrator, businesses can expand their geographical reach by enabling the most relevant payment options in each market without requiring multiple integrations.

This results in a virtuous cycle: higher transaction approval rates, lower fraud, and reduced integration and processing costs.

“At DEUNA, as the unified platform simplifying global payments, we are committed to supporting businesses in the most dynamic e-commerce markets in Mexico and Latin America, such as retail, entertainment, and airlines, that have not yet reached their full potential. Our mission is clear: to reduce costs, maximize revenue, and foster the growth of a more robust e-commerce ecosystem in the region”, said Matias Rodríguez, General Manager and VP of Sales at DEUNA.

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