It’s no secret that the payments industry has undergone an exponential rate of change within the last year. With an explosive growth in alternative payment methods (such as digital wallets), the rise of buy-now-pay-later (BNPL) platforms and aggressive commoditisation in the processing market, this now means that merchants are rapidly drowning as they seek to remain agile yet capitalise across an increasingly fragmented and brittle payments market. This proliferation of vendors has resulted in a significant commoditisation in the payments market, thus creating a substantial bottom line problem for merchants worldwide as per a market research indicating that many major brands typically leave 3-4% of profit on the table.
Many major brands typically leave 3-4% of profit on the table
Lots of businesses are known to stick with a single vendor strategy only for them to realise that something was missed. Whether it be compliance, cost or strategic reasons…We all know that in the fintech world, just because a vendor may have multiple offerings, it is rare that only one does everything ever required both now and in the future.
Single vendor strategies are no longer defensible
Rapid innovations in the payments industry are driving a steep change in how consumers are paying and merchants are needing to stay agile and ensure they are capitalising on the best the market has to offer. Connecting to newer and evolving vendors such as AfterPay and ApplePay are key to retaining customers in today’s landscape, but at what cost? Businesses are constantly exhausting their resource, whereby they are changing their vendors on a regular basis or left with very little option to work with the limitations that the single vendor has. This has the potential to leave a lot of profit on the table, or using “wasted money” on technical resource such as maintaining an in-house development team that will ‘patch’ over the problems.
Given the complexities of the payments market today and expeditious pace of change in customer demand, it’s no longer feasible for merchants to commit to a single-vendor strategy. Instead, they must adopt a multi-vendor approach that enables them to regain control of their money whilst future proofing all aspects of the business.
How to fix the Single Vendor problem
The solution to this is an exciting yet relatively recent market segment, payments orchestration. Payments orchestration enables merchants to rapidly consume and absorb all that the market has to offer without compromising their pockets and coming up short.
By defaulting to an orchestration-first payments strategy with Paydock, merchants are able to plug in multiple vendors through a simple, uniformed platform whilst satisfying mandatory technical, compliance, security and other functional requirements and above all else, it eliminates both the complexity and traditional costs.
Why Orchestration is the definitive solution
Paydock diffuses the pain points that are typically present within a single vendor strategy and harmonises merchants payments strategies with the following benefits:
- Unlimited Connections: With Paydock, merchants can offer greater flexibility to their customers and are able to route payments to unlimited gateways regardless of any variables holding them back, such as currency, payment method, card scheme etc.
- Data Visibility: Orchestration gives merchants a unique lens on payments across all channels on a single dashboard. They are also able to gain fresh clarity on all consumer activity across these channels and provide payment preferences based on behaviour through data collected within Paydock.
- No Maintenance: Paydock removes the headache for Merchants with the upkeep and maintenance of the gateways and takes full control of all the technical configuration, leaving merchants to focus free on the core business.
- Future-proofed: Paydock’s sustainable competitive advantage is the ability to future-proof customers by capitalising (rather than suffering) from the increasing rate of fragmentation and giving them the confidence to move freely with new entrants and trends within the changing landscape.
The single vendor era is officially outdated and no longer working, orchestration is the definitive solution redefining payments experiences and a no brainer for all parties involved whether that be for merchants, customers or vendors.
By adopting an orchestration approach with Paydock, this will not ‘rock the boat’ with your current relationships with partners and vendors but instead will seamlessly integrate into your payments solution whilst being completely agnostic.
Find out more
If you’re looking to set yourself free from the single vendor approach or you want to find out more about orchestration-first strategy with Paydock, get in touch with one of our experts at [email protected]