In the rapidly changing digital world, accepting online payments is becoming more than just a technical task, but a strategic element of business development. When it comes to scaling, entering international markets, or increasing the reliability of the payment infrastructure, integration with a payment gateway is no longer enough. It is important to consider an approach using payment orchestration — a concept that allows a business to connect and effectively manage several payment gateways simultaneously. This not only increases the stability of the payment system but also opens up new opportunities for optimizing transaction routes, expanding local payment methods, and adapting to customer needs.
Payment Gateways: What You Need to Know
A payment gateway is a tool for accepting payments through a company’s website. It acts as an intermediary between the website and the financial institutions involved in processing the payment. Such institutions may include banks, online payment systems, e-wallets, deferred payment services, etc.
This is how a payment gateway differs from online banking acquiring, which is directly linked to a specific bank and processes payments only from credit/debit cards.
The main task of a payment gateway is to process payments, as well as ensure data protection and provide a convenient interface for making payments. When placing an order, the customer is taken to a secure page where they enter payment information, such as bank card details.
The gateway transmits this information to the payment processor. The latter, in turn, contacts the card issuing bank and receives confirmation or rejection of the transaction. The response is sent back to the payment gateway, which sends the information to the website.
The client receives confirmation of payment or refusal to place an order. The process occurs automatically in a few seconds. The transmitted information is protected by the HTTPS protocol, encryption, and other security systems.
Why Is One Payment Gateway Not Enough?
Many businesses use several payment gateways at the same time. Integrating only one service may not be enough for several reasons:
- Limited payment options. Payment gateways support different payment methods: cards, wallets, cryptocurrency, BNPL services, etc. One gateway cannot include all the options required by customers from different parts of the world.
- Geographical and sanction restrictions.
- Difficulties with local payment methods. Different systems of cards, local e-wallets, etc., are used in different parts of the world. One service cannot effectively cover the needs of customers if the company has a large geographical coverage.
- Risks of technical failures. Even the most reliable payment gateway can experience unforeseen technical problems. If the company’s website does not have a backup option, this will suspend the processing of orders for an indefinite period.
Benefits of Integrating Multiple Payment Gateways
Connecting multiple payment gateways allows businesses to increase the stability of payment acceptance, cover more regions, and respond flexibly to market changes. This is a strategic decision that enhances reliability and expands the capabilities of the payment infrastructure. Here are the main advantages:
Improved convenience for customers
Connecting multiple gateways allows you to provide customers with a variety of payment methods: cards, online wallets, buy now, pay later services, cryptocurrency, local payment methods, etc. This allows each user to find a convenient payment method. As a result, the number of successful transactions increases and the percentage of abandoned carts decreases.
Reduced risks
Working with one payment gateway makes a business dependent on one provider. As a result, if there is a technical failure on the gateway side, the company completely loses the ability to serve customers. This problem will not arise if several payment options are integrated into the site.
It should also be taken into account that the provider can unilaterally change the terms of service, increase the size of commissions, etc. Having backup options allows a business to easily refuse cooperation that has become unprofitable as a result of such changes.
Expanding global coverage
Connecting payment gateways that support international and local payment methods allows you to expand the company’s geographic coverage. Different services work with different currencies, which makes it possible to accept payments, including in unpopular local currencies. Using tools such as cryptocurrency gateways completely removes geographic restrictions: crypto payments are decentralized and do not depend on country borders.
Optimizing transaction costs
Payment methods may also differ in the size of the commission. It can be charged for processing the transaction, currency conversion (if necessary), intermediary services, international transfers, and the operation of the payment gateway itself. Using several services allows you to choose the most profitable payment options — for example, cryptocurrency transactions, the commission for which usually does not exceed $1-2.
Speeding up processes and improving customer experience
The availability of alternative payment options increases customer satisfaction by allowing them to choose the most convenient way to make a payment. In case of technical problems and unavailability of the selected payment method, the user can use another option. This reduces the number of abandoned carts and helps retain the audience, increasing the percentage of repeat orders.
Increasing conversion
Conversion (the percentage of users who made a purchase) is one of the key metrics in marketing. It is influenced by a number of factors, including the convenience of the payment process: checkout optimization, transaction processing speed, and availability of payment methods suitable for the client. Integrating multiple payment gateways increases sales conversion, increasing the company’s revenue.
When choosing payment processing gateways, it is recommended to consider several criteria:
- Commission size.
- Payment processing speed.
- Supported payment methods.
- Availability of additional functions.
- Integration methods.
Wrapping It Up
Integrating multiple payment gateways is not just a technical improvement, but a strategic step towards sustainable growth and global competitiveness. With payment orchestration from Tranzzo, businesses get centralized management of all payment flows, flexible routing, increased fault tolerance, and the ability to easily implement white label solutions. This approach not only simplifies working with clients in different countries but also allows you to quickly respond to market changes, ensuring a reliable and efficient user experience.