In today’s digital commerce landscape, transaction failures and payment declines pose major challenges. In India, the average transaction success rate is 70%, and 15% of online payments are declined due to gateway errors, bank issues, or fraud detection. Such failures frustrate customers and lead to abandoned carts, with 42% of users abandoning purchases after a failed transaction.
Merchants need a seamless and efficient payment process that minimizes transaction failures, improves checkout experiences, and optimizes costs. A Payment Orchestration Layer (POL) plays a key role in managing and optimizing payment flows across multiple gateways.
The Problem with Biased Payment Orchestration Layers
While many payment providers also offer orchestration services, recent trends show that fintechs and payment gateways are cutting ties with such platforms due to potential conflicts of interest. The key concerns include:
- Vendor Lock-In: Relying on a single vendor for both orchestration and payment processing limits flexibility.
- Higher Costs: Integrated providers may charge premium rates for their services over time.
- Biased Routing: These platforms may prioritize their own payment gateways, preventing merchants from optimizing Merchant Discount Rates (MDR).
Why a Neutral Orchestration Layer is Essential
A neutral orchestration layer like Comviva’s mobiquity® One solves these challenges by supporting open standards and interoperability. Its AI-driven smart routing optimizes transactions without bias, leading to higher success rates and cost savings.
Key Benefits of mobiquity® One
- Seamless Integration & Payment Flexibility
- Connects with multiple Payment Service Providers (PSPs), allowing merchants to offer diverse payment options (cards, wallets, UPI, net banking, etc.).
- Supports cross-border payments for global merchants.
- Higher Transaction Success Rates
- Uses dynamic smart routing to select the most efficient PSP based on transaction type, location, and past success rates.
- Reduces payment failures and enhances customer satisfaction.
- Cost Optimization
- Routes transactions through the least-cost gateway, reducing MDR costs.
- Online businesses have seen up to 15 basis points (0.15%) savings on MDR.
- Simplified Operations
- Eliminates the complexity of managing multiple PSP relationships.
- Merchants can switch gateways without major technical changes.
- Enhanced Security & Fraud Prevention
- Uses real-time monitoring and machine learning for fraud detection.
- Analyzes data across multiple PSPs to prevent fraudulent activities.
- Data Insights for Strategic Decision-Making
- Provides comprehensive analytics on payment performance.
- Helps merchants optimize payment strategies and understand customer behavior trends.
How mobiquity® One Solves Key Merchant Challenges
- Reducing Payment Failures
Smart routing with mobiquity® One has improved payment conversion rates by up to 5% for businesses. It dynamically routes transactions to the most reliable PSPs, ensuring a higher success rate and fewer declines. - Managing Payment Complexity
Today’s shoppers demand fast checkouts (75%) and more payment options (56%), but managing multiple PSPs is challenging. mobiquity® One simplifies this with a unified platform that enables merchants to integrate, manage, and optimize payments effortlessly. - Enhancing Customer Experience
Seamless payments are crucial for customer loyalty. By offering a unified checkout experience, reducing transaction failures, and enhancing security, mobiquity® One ensures higher conversion rates and repeat purchases. - Cost Savings Through Least-Cost Routing
By optimizing payment routing, businesses using mobiquity® One have reduced MDR costs by up to 0.15%, translating into significant savings, especially for high-volume transactions. - Adapting to Evolving Market Needs
The payment landscape is constantly evolving, with new payment methods and regulations. mobiquity® One offers quick adaptability, allowing merchants to integrate new options and stay compliant.
Real-World Impact
One of India’s leading gifting platforms implemented mobiquity® One and saw:
- Payment success rates rise above 80% in just 6 months.
- Reduced MDR costs by adopting multiple payment options (UPI, wallets, cards, net banking).
- Enhanced customer satisfaction and checkout experience.
Conclusion: The Future of Payment Orchestration
As digital commerce expands, merchants need a robust and flexible payment orchestration strategy to stay competitive. mobiquity® One provides a neutral, AI-driven solution that ensures higher transaction success rates, cost efficiency, and superior customer experiences.
For more details on mobiquity® One, contact mailto:info@comviva.com.
