PUBLISHER: KBV Research | PRODUCT CODE: 1115317
PUBLISHER: KBV Research | PRODUCT CODE: 1115317
The Global Payment Orchestration Platform Market size is expected to reach $3.7 billion by 2028, rising at a market growth of 22.4% CAGR during the forecast period.
A payment orchestration platform is a third-party platform that integrates and manages the entire payment procedure from starting to the end. A payment orchestration platform helps in streamlining processes including transaction routing, payment authorization, and settlement. This procedure entails connecting to various banks, acquirers, and payment service providers via a special software layer. The generally complex payment process can be simplified and optimized with the use of a payment orchestration platform.
As a result, rather than juggling dozens of connectors across several payment service providers, this payment solution can assist merchants in building a more effective payment stack throughout a single platform. A payment orchestration platform can also be referred as a set of services and tools that aid users in coordinating and managing several elements of payment. Connections to different payment service providers, transaction routing, cascade, fraud protection, vaulting, automatic reconciliation and settlements, tokenization, compliance, and thorough analytics and reporting are often the essential components.
Payment orchestration uses these tools to streamline the management of the payment infrastructure and optimize the payment process. Finding the appropriate payment option for specific goals and requirements is crucial if any business accepts, both card-present and card-not-present transactions. Payment orchestration and payment processing can be confusing. However, they differ in terms of the services they offer or their connectivity, flexibility, and usefulness.
To assist users in identifying the appropriate solution for their business, there is a considerable number of payment orchestration platforms by different market players. In addition to making it easier to access an unlimited number of payment providers and methods (such as PSPs, acquirers, gateways, processors, and security vendors) through single API integration, a payment orchestration platform also enables the company to expand more quickly into new markets while maintaining the necessary flexibility.
COVID-19 Impact Analysis
The backbone of technology providers, small and medium-sized businesses, has witnessed a sharp decline in revenue as a result of the pandemic. As a result of the supply chain disruptions, market players encountered several difficulties. However, the payment orchestration platform market witnessed several growth prospects owing to the emergence of the pandemic. Due to the social distancing norms, people were more tend to avoid cash payments owing to the risk of infection. Therefore, the growth of the trend of cashless payments was observed. Moreover, the COVID-19 pandemic has accelerated the trend toward more digital financial transactions.
Market Growth Factors
Increased Redundancy Along With Reduced Friction
If a business is compelled to rely on a single PSP or buyer, it has less control over how a transaction would proceed. This factor indicates a higher risk of payment failures, and the usage of inefficient payment routing, which results in reduced sales and business, a diminished competitive advantage, and disgruntled consumers. Multiple payment methods are supported by Payment Orchestration Platforms utilizing a single API. Because Payment Orchestration Platforms are flexible and dynamic, a transaction can be routed to maximize its benefits for both the customer experience and the business.
The Rising Popularity Of E-Commerce All Over The World
In recent years, E-commerce has significantly gained popularity all over the world, which increased the competition in the market. Since payments are very important to the customer experience, retailers must pay close attention to how simple, quick, and safe it is for customers to make payments. It would determine whether the buyer would finish the payment procedure or stop it midway due to the challenges. The payment orchestration platform plays a crucial role in offering high-quality payment software. Research indicates that there will be an increase in POP demand in the near future.
Market Restraining Factors
Lack Of Agility And Control Of Transaction Flow
Lack of agility is a serious issue with a payment orchestration platform because integrating new payment choices is frequently quite difficult. Payment orchestration, which offers numerous payment options through single API integration, resolves this issue by reducing time-to-market and increasing competitiveness. However, if the transactional data is dispersed among numerous PSPs and gateways, the company can lack relevant and informative data. This complicates the analysis of any kind and makes it more challenging to spot fraud.
By the Type, the payment orchestration platform market is segregated into B2B, B2C, and C2C. In 2021, the B2C segment garnered a significant revenue share of the payment orchestration market. The rapidly surging growth of the segment is attributed to the growing utilization of digital payment methods, such as mobile banking, digital wallets, and cashless trends. The expansion of online payment systems is also linked to the expansion of the e-commerce sector.
On the basis of Functionalities, the payment orchestration platform market is segmented into Cross Border Transactions, Risk Management, and Advanced Analytics & Reporting. In 2021, the advanced analytics & reporting segment recorded a substantial revenue share of the payment orchestration platform market. The demand for centralized dashboards powered by AI to improve corporate efficiency is substantially driving the growth of this segment of the market. Many companies all over the world are deploying AI-enabled POPs to handle financial transactions.
Based on the End-use, the payment orchestration platform market is categorized into BFSI, E-commerce, Healthcare, Travel & Hospitality, and Others. In 2021, the BFSI segment witnessed the highest revenue share of the payment orchestration platform market. The rise in the growth of the segment is a result of the continuously increasing workload on the BFSI sector all over the world. In addition, instant, online, and simpler payments are considered as the future of banking. These trends have developed as a result of the creation of more modern business models with POP features, such as improved financial services connectivity, responsiveness, dependability, and security.
Region-wise, the payment orchestration platform market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In 2021, North America held the biggest revenue share of the payment orchestration platform market. The growth of the regional market can be ascribed to the prevalence of numerous prominent players throughout North America as well as the growing necessity to stop fraudulent operations because of the rise in cybercrime. For instance, in June 2022, Spreedly, a provider of payment orchestration, introduced its Network Tokenization payment program in partnership with Mastercard for suppliers across North America. This program was made possible by Mastercard's MDES.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include CellPoint Digital Ltd., IXOLIT Group, Payoneer, Inc., APEXX Fintech Ltd., Rebilly, Spreedly, Inc., Modo Payments, LLC, Akurateco BV, BNT SOF, and aye4fin GmbH.
Recent Strategies Deployed in Payment Orchestration Platform Market
Partnerships, Collaborations and Agreements:
Jun-2022: IXOPAY came into a partnership with Concardis, a payment service provider. Through this partnership, the companies aimed to offer access to state-of-the-art infrastructure as well as payment processing to their customers.
Jun-2022: Apexx Global entered into a partnership with Paysafe, a specialized payments platform. Following this partnership, Apexx would leverage the payment processing services of Paysafe in order to aid its merchants to scale worldwide by surging their international payment adoption. Moreover, it would also enable them to conduct card transactions flawlessly across several currencies and countries.
Jun-2022: APEXX came into a partnership with Ryanair, an Irish ultra-low-cost carrier. Under this partnership, APEXX aimed to transform the legacy payments infrastructure of Ryanair as Europe continues to lift closures off borders and international travel achieves the pre-COVID level.
May-2022: CellPoint Digital partnered with Continuum Commerce, a multi-currency and FX services provider. Under this partnership, CellPoint would continue to offer its payment orchestration platform to Continuum in order to address the challenges encountered particularly by the airline sector.
Apr-2022: CellPoint Digital entered into a partnership with MTC Game, an eCommerce platform for video gamers. With this partnership, CellPoint aimed to aid MTC in accelerating its expansion.
Mar-2022: IXOPAY partnered with Hawk AI, an anti-money laundering surveillance technology provider. This partnership aimed to bolster IXOPAY's portfolio by offering access to state-of-the-art fraud prevention to white-label clients that leverage conventional guidelines along with artificial intelligence to identify suspicious behavior.
Feb-2022: Spreedly extended its partnership with Stripe, a range of APIs driving online payment processing and commerce solutions. Through this partnership, Spreedly aimed to provide more local payment methods to customers by leveraging alternative payment methods of Stripe and Radar, Stripe's anti-fraud tool.
Jan-2022: IXOPAY entered into a partnership with GoCardless, a fintech leading in direct bank payment solutions. This partnership aimed to streamline the merchants to gather recurring and one-off payments across more than 30 countries.
Dec-2021: APEXX entered into a partnership with Worldline, a leader in the transactional and payments services industry. Following the partnership, Worldline would allow its e-commerce merchants all over the world to access BNPL solutions within more than 40 markets all over the world through the BNPL Connect platform of APEXX.
Oct-2021: IXOPAY entered into a partnership with Payaut, a marketplace payout specialist. This partnership aimed to provide flexibility and independence to platforms and marketplaces according to their requirements for their payment setup.
Jun-2021: IXOPAY partnered with Silverflow, a global payments technology company. Under this partnership, the companies would allow IXOPAY customers to upgrade their process of making payments through cards by migrating to cloud-based acquiring.
Sep-2020: CellPoint Digital came into a partnership with Cebu Pacific, the largest airline in the Philippines. Following this partnership, the companies would deploy a cutting-edge Payment Orchestration Platform all over the digital channels of CellPoint. Moreover, CellPoint's Velocity would allow Cebu to tremendously streamline the payment experience of its customers by installing stored cards across all its digital channels along with a single sign-on.
Product Launches and Product Expansions:
Nov-2020: Payoneer launched Payoneer's agnostic payment orchestration platform, the new payment orchestration platform of the company. The new product aimed to allow North American e-Commerce merchants to receive international payments. In addition, the new solution serves as a technical layer that offers the merchant a single integration to numerous payment methods, payment providers, and risk providers.
Market Segments covered in the Report:
By End Use
Unique Offerings from KBV Research
List of Figures