Episode 112: How to Launch a Payment Orchestration Platform

In the latest episode of Fintech Garden podcast by DashDevs, Igor Tomych and Dumitru Condrea explore essential insights into launching and scaling payment orchestration platforms (POPs), a critical and evolving topic in the fintech industry. The episode outlines key strategies, motivations, and technical considerations necessary to effectively enter the fast-growing payments orchestration market.

The Rise of Payment Orchestration Platforms

The conversation starts by examining the primary market drivers propelling the adoption of POPs. Igor Tomych identifies two pivotal trends:

• Growth in Digital Transactions: The global rise in digital payments creates an urgent demand for platforms capable of real-time transaction visibility and efficient handling of payment flows.
• Enhanced Cash Flow Management: Businesses increasingly prioritize instant payments to improve cash flow, facilitate financial planning, and provide immediate transaction insights to customers and merchants alike.

Internal Business Needs Driving Adoption

Dumitru Condrea emphasizes that internal operational efficiency significantly motivates companies to adopt payment orchestration platforms. Specifically, he notes:

• Automation of Financial Processes: Automating complex financial operations dramatically reduces manual labor, decreases errors, and enhances the accuracy of financial reconciliations.
• Improved Settlement Cycles: POPs facilitate the transition from traditional T+5 settlement cycles to real-time or next-day settlements, greatly enhancing business agility and competitiveness in fast-paced markets.

Optimizing Payment Methods and Acceptance Rates

Igor underscores the importance of optimizing payment methods to balance customer convenience and operational costs:

• Alternative Payment Solutions: Integrating methods such as Blick in Poland, Apple Pay, and Google Pay significantly boosts transaction acceptance rates, reduces transaction fees, and offers an improved user experience.
• Cost Efficiency: Reducing transaction costs remains a critical objective for merchants, directly impacting profitability and customer satisfaction.

Distinguishing Between PSPs, PSGs, and POPs

The podcast clarifies the distinctions among payment-related solutions:

• Payment Service Gateways (PSGs): Handle direct, PCI DSS-compliant transactions.
• Payment Service Providers (PSPs): Solve specific business cases.
• Payment Orchestration Platforms (POPs): Aggregate multiple PSGs, providing advanced transaction routing and management through API-first approaches.

Real-world Application and Case Studies

Igor shares a case study of IOpay, a travel tech-focused POP:

• Smart Routing Solutions: Addressed complex currency conversion challenges, significantly cutting transaction costs and enhancing efficiency across international markets.

Risk Management Considerations

Dumitru discusses risk management:

• Anti-fraud Measures: Deliberate balance between transaction acceptance and fraud prevention to protect operational integrity.

Strategic Business Benefits

Both experts underline POPs’ strategic advantages:

• Executive Resource Optimization: Automating manual processes frees high-value executive time.
• Scalable Financial Processes: Thoughtful financial data management ensures long-term scalability and efficiency.

Why Does This Matter?

The episode reinforces the universal importance and application of POPs across fintech, e-commerce, and travel sectors. Igor and Dumitru advocate prioritizing profitability, operational efficiency, and scalability through effective payment orchestration solutions.

Planning to launch a Payment Orchestration Platform? We know how to make it happen — from strategy to execution. Let’s talk.