Three-quarters of eCommerce Businesses are still Struggling to Optimize their Payments
New research from Nuvei and Edgar, Dunn & Company highlights the opportunities Payment Orchestration brings to revenue growth.
Nuvei Corporation (“Nuvei” or the “Company”), the Canadian fintech company, has revealed that three-quarters of eCommerce businesses (75%) say they need greater levels of support to optimize their payments function due to a reliance on an increasing number of payments providers.
This data is available in Nuvei’s latest whitepaper Payment Orchestration: A practical guide to optimizing payment performance. Nuvei partnered with Edgar, Dunn & Company (EDC) to survey over 100 international businesses across a variety of verticals that sell online to consumers.
Capitalizing on the benefits of the multi-vendor model
In an increasingly complex landscape, more than half (54%) of online businesses are now using at least six payment providers to optimize their checkouts as they look to scale into new markets, win new customers, and grow revenue. A third (33%) have direct acquiring relationships with at least five banks.
The rise of this multi-vendor model is a direct result of eCommerce businesses understanding that there is a real opportunity to accelerate growth. Harnessing the power of best-in-class payments technology in every market they operate, and for every relevant payment method, is critical for businesses to optimize their payments performance.
But businesses are also aware that a lack of coordination and optimization of these complex set ups may have a negative impact on their revenues as well, including permanently losing customers. The research shows that 59% of businesses believe that customers who have experienced a false decline will not give businesses a second chance. It also shows that alternative payment methods are becoming more important to eCommerce, with only 23% of online businesses’ checkouts now have three available payments methods or less.
Understanding Payment Orchestration
There is a clear role for payments orchestration in providing the control online businesses need to effectively optimize their backend payments flow. Without Payment Orchestration businesses are unable to set specific and intricate rules for payments acceptance to boost conversion and revenue, and they also do not have full visibility of their performance with which to make informed decisions.
This is evident in the whitepaper research. Businesses told Nuvei they have a variety of specific motivations for implementing a Payment Orchestration solution, including a reduction in the cost of payment acceptance, greater efficiency internally, and a wider acceptance of more payment methods. Many merchants intend to optimize payment conversion with smart routing capabilities to increase revenue.
Nuvei’s practical guide helps eCommerce businesses implement and get maximum value from their Payment Orchestration Platform (POP). When integrated effectively, Payment Orchestration can enable businesses to improve their overall payment performance through enhanced efficiency, security, flexibility, and scalability.
Edgar, Dunn & Company conducted the research in Q4 2022 and in early Q1 2023. This involved conducting primary and secondary research, including the completion of in-depth interviews with large multinational B2C businesses. A survey was also conducted at the beginning of 2023. The survey has been administered online to more than 100 international businesses that sell online to consumers with a sample of respondents working in the finance, payments or commercial fields. The questionnaire included a mix of pre-qualifying information, multiple choices, and open-ended questions regarding their experiences and views on the topic of Payment Orchestration. All data was collected anonymously.
Nuvei is the Canadian fintech company accelerating the business of clients around the world. Nuvei’s modular, flexible and scalable technology allows leading companies to accept next-gen payments, offer all payout options and benefit from card issuing, banking, risk and fraud management services. Connecting businesses to their customers in more than 200 markets, with local acquiring in 45+ markets, 150 currencies and more than 600 alternative payment methods, Nuvei provides the technology and insights for customers and partners to succeed locally and globally with one integration.
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