What 110 Companies Reveal About the Future of Payments Orchestration

§ 01 Executive Snapshot

• What: A report highlights the importance of payment orchestration for improving transaction success rates and customer trust.
• Who: Conducted by PYMNTS Intelligence in collaboration with Spreedly, based on a survey of 110 U.S. companies.
• Why it matters: Optimizing payment orchestration is crucial for businesses to enhance checkout performance and customer satisfaction.

§ 02 Key Developments

• Nearly nine in 10 companies have failover or backup routing in place to manage payment issues.
• Only 47% of companies achieve transaction approval rates above 97% in a typical month.
• More than half of the surveyed companies experience payment disruptions at least monthly.

§ 03 Strategic Context

• The report emphasizes that effective payment orchestration requires a full set of capabilities, which many companies are still lacking.
• Companies with only partial orchestration capabilities often face increased complexity without achieving significant benefits.

§ 04 Strategic Implications

• Immediate market consequence: Companies that implement comprehensive payment orchestration strategies can improve checkout completion and customer trust.
• Long-term operational implication: Enhanced token control can lead to reduced costs and improved flexibility in switching payment providers.

§ 05 Risks & Constraints

• Potential risk: Many companies do not fully control digital credentials tied to saved payment methods, complicating provider transitions.
• Potential risk: Companies lacking comprehensive orchestration capabilities may struggle to respond effectively to payment performance issues.

§ 06 Watchlist / Forward Signals

• The report highlights the importance of faster provider onboarding and integration of new payment rails as a means to improve competitive positioning.
• Future developments in payment orchestration capabilities will signal the success or failure of companies in enhancing their checkout processes.