What’s The Difference Between Payment Aggregator And Payment Orchestrator?

What's The Difference Between Payment Aggregator And Payment Orchestrator

SaaS and software developers must understand payment processors to compete in the growing eCommerce business. Payment aggregator and orchestrator are common payment industry phrases. They are not interchangeable, although they are related to payment processing.

SaaS and software companies accepting online payments must grasp the differences between payment aggregators and orchestrators. Let’s compare payment aggregators and orchestrators and how they may affect your payment processing approach.

Payment Aggregator: What Is It?

A payment aggregator enables companies to take payments without merchant accounts. It simplifies the procedure by mediating between merchants and acquiring banks and allows retailers to process payments via the aggregator’s merchant account.

This makes it simple for companies to take payments without extensive setup or upkeep. Payment gateway aggregator charge a percentage or set fee for each transaction, based on the agreement between the parties. 

Pros Of Payment Aggregators

  • Simple setup: Businesses may receive online payments quickly without a lengthy setup or maintenance process.
  • Many payment options: Payment aggregators accept credit, debit, local, and e-wallets, giving customers more payment alternatives.
  • A cheaper option for small businesses: This method costs fewer transaction fees. This is because they take more risk processing transactions under their master merchant account and provide sub-merchants with easy usage and speedy onboarding.
  • Value-adds: Fraud detection, chargeback management, and payment analytics help SaaS and software companies manage their payment processing operations.

Payment Orchestrator: What Is It?

Authorizing payments, routing transactions, and handling settlements are all part of payment orchestration. Payment orchestration helps firms expand faster and be more agile. While complying with rules, firms may enter new markets, integrate regional payment providers, and handle several currencies more simply.

Online enterprises may interact with payment service providers more easily via a payment orchestration system. Payment orchestration solutions allow one website to link several payment processors, streamlining back-end and front-end procedures and offering users more payment alternatives.

Payment orchestration solutions allow online retailers to manage their payment service providers from one page by integrating PayPal, Mastercard, American Express, and Visa.

Pros Of Payment Orchestrator

  • Increased revenue
  • Reduced costs of processing payments
  • Smart routing
  • Real-time data analytics and reporting
  • Easier payment integrations
  • Easier payment integrations
  • Ability to access various payment methods
  • Increased acceptance rates

Which One Is More Beneficial To Your Company?

Payment gateways and orchestrators assist financial transactions. The payment system benefits immensely from a Payment Orchestrator.

Payment Orchestrators may operate with any payment provider, unlike gateways, which need a single payment processor to process cardholder data. They assist merchants develop stronger payment stacks by simplifying acquirer management and payment routing. Analyzing all payment method data may boost earnings and save costs for a store.

The system’s unification and adaptability define it. As we’ve seen, the fast-growing payment industry requires firms to swiftly adapt their payment infrastructure to changing customer needs, tougher security measures, and new payment methods. Payment Orchestration integration and optimization are enhanced, improving merchant and customer outcomes.