Payment processing is the most important factor for the maintenance of the flow of recurring revenue. And revenue stream is not only a way to earn profit but first. It is the source to get resources to run the regular activities of the business. However, many people confuse payment processing with payment orchestration. So, it is important to understand the difference between the two before we take you to the details of the orchestration in the subscription business.
Payment orchestration is the integration of the system so as to manage the entire payment process and transaction routing. But payment process is the processing of one payment or all payments that usually start from the billing and end at the transaction. So, payment orchestration is a thing that occurs at the upper level so that payment processing remains smooth.
Importance of Payment Orchestration for Subscription Businesses
The importance of payment orchestration for subscription businesses is two folds for payments to be managed and processed on the online platforms and through digital forums. The following are the points that show the importance of payment orchestration for subscription businesses:
Entertain Preferences of Clients for Payments
Today, customers want to have subscription plans of their choice and want to pay through their preferred payment methods. Payment orchestration allows you to expand your customer base by empowering customers to pay with the payment method of their choice. The success of the subscription business hugely depends on the satisfaction of the customers. And to satisfy customers you need a failsafe payment system that is possible only with payment orchestration.
Minimum Payment Failures
Today, payment failures are one of the leading concerns for all subscription businesses for they cause involuntary churn which is another menace affecting the success of various subscription businesses. When the customer tries to pay for his recurring charges and he cannot because of technical problems, it is annoying for the customers and it leads them to cancel the subscription. However, payment orchestration plays role in minimizing the chances of payment failures so that involuntary churn can exist avoided.
Ensures Payment Security
Today, in the digital world, one of the major concerns. Subscription businesses remain to make sure that their clients are satisfied with their fintech stack and willing to pay them through their online platform. So, core subscription management software remain integrated with multiple payment gateways. These payment gateways increase the online security of the entire payment process. More is the payment security, more are the chances to keep your recurring customers satisfied.
Increased Chances to Enter the New Market
Subscription billing is one of the best business models that enable you to enter a new market of customers. How? Your fintech stack remain already set and you can assure your new customer base of online payment security which is the crucial part of the entire payment processing. Also, sometimes customers in the new market demand the integration with some other payment gateway. Integration with the new and high-tech payment gateways further improves the security of your payment processing system.
Better Chances to Compete
Payment orchestration is also helping subscription businesses to better compete in the subscription business market. It can enable entrepreneurs and startups to compete with. A subscription business giants that are here in the market for many years. Payment orchestration is not only related to the payments, yet it ensures the fulfilment of the subscription billing plan.
Now, you would have gotten it that it reman important to have payment orchestration for it improves the overall payment processing. If you are looking for a platform from which you can improve payment orchestration, then SubscriptionFlow is the one where your search will end. From here you can manage subscriptions and get payment orchestration as well.