The future of payments: Unlocking the power of payments orchestration

A significant number of merchants and payment service providers (PSPs) are realizing the advantages of payments orchestration. For instance, a leading eCommerce retailer reported a 20% increase in revenue after implementing a payments orchestration platform that optimized transaction routing and reduced processing fees. Similarly, a global PSP achieved a 15% reduction in fraud-related losses by leveraging advanced analytics and real-time monitoring.¹

It’s not just about accepting payments and mitigating fraud—it’s about how payments and fraud work together to achieve better results in your payments orchestration. By integrating fraud prevention measures with payment processing, businesses can create a seamless and secure transaction environment. This collaboration ensures that fraud management, and the wealth of intelligence it brings, is not just an afterthought but rather an integral part of the payments process. 

Effective fraud management requires a coordinated approach. No single solution can make precise decisions independently, so trusted sources across the ecosystem must be utilized. AI-powered fraud orchestration enables merchants to make rapid decisions on transactions—whether to accept, deny, or challenge them. This approach aims to minimize fraud and improve conversion rates by preventing the rejection of legitimate transactions.

Fraud prevention and analytics play a crucial role in payments orchestration. Real-time monitoring and data analysis are necessary to take immediate action. This proactive approach not only protects against fraud but also provides valuable insights into consumer behavior and transaction patterns.

By analyzing transaction data and customer behavior, businesses can identify patterns of fraud, such as frequent returns.

But what role does tokenization play in this process?

Payment tokens substitute the card number with a unique identifier that can only be accessed within a token service provider’s secure token vault. These tokens are specifically linked to a device or merchant, ensuring that only the respective device or merchant can use them, thereby preventing fraudsters from exploiting them. Additionally, network tokens are issued by acquirers and major card networks.

One of the primary advantages of using tokens is their uniqueness and ability to securely share with internal and external systems. This facilitates the integration of previously siloed systems within the payments orchestration system, thereby reducing latency. This reduction in latency can be important for Buy Online Pick-Up In-Store (BOPIS), Buy Online Return In-Store (BORIS), and loyalty programs.

For instance, consider a situation involving a fraudulent individual who cancels an in-store pick-up transaction via their mobile device while an employee retrieves the item from the back. Any system latency in this scenario would allow the fraudster to leave the store undetected, resulting in the cardholder being unaware that their card had been stolen and the merchant incurring the loss.

In recent years, tokenization has seen significant growth. According to Digital Transactions, as of February 2025, Visa’s token volume increased by 40% year over year, reaching 12.6 billion tokens. Mastercard processes approximately 1 billion network tokens per week. Networks are supporting this strategy by offering discount points on transactions utilizing tokens. Furthermore, network tokens streamline the payments process, reduce transaction fees, and improve authorization rates. According to Mastercard, on average, merchants can save up to 20% on transaction fees and reduce fraud-related losses by 15% by using network tokens.

Merchants receive network tokens, device tokens (such as those from Apple Pay, Google Pay, Samsung Pay), and in many instances, acquirer tokens. How do they manage these tokens effectively?

One omni-token can link everything together by providing a unified tokenization strategy that integrates with various networks, acquirers, and PSPs. This approach ensures that merchants have full control over their tokenization process, allowing them to leverage the benefits of network tokens while maintaining interoperability and security. By using a single omni-token, businesses can simplify their payment processes, reduce costs, and enhance the overall consumer experience.

Transitioning to a payments orchestration model may seem overwhelming, but it’s a necessary evolution for growth-oriented retailers. Here’s how to get started:

• Evaluate current systems: Create a comprehensive review of your current payment processes, including conversion rates and costs. Identify existing vendors and assess their ability to offer holistic services
• Choose the right partner: Select a payments orchestration platform provider that aligns with your industry needs, customer expectations, and budget. Look for POPs that offer robust security features, flexible integration options, and a wide range of payment methods
• Prioritize security and compliance: Ensure your chosen platform complies with industry standards and offers strong authentication and fraud prevention features
• Embrace flexibility: Use the flexibility of payments orchestration to experiment with new payment options and refine your approach based on customer feedback and transaction data

As consumer expectations continue to rise, the need for a robust and flexible payments system becomes critical. POPs enable retailers to meet and surpass demands, leading to greater innovation and customer satisfaction. By embracing this transformative technology, businesses can enhance their checkout experience, optimize their operations, and ultimately drive growth in an increasingly competitive market.

Payments orchestration is not just a buzzword—it’s a transformative approach that offers immense benefits to merchants and PSPs. From enhanced security and cost reduction to improved consumer experiences, the advantages are clear. By embracing tokenization and leveraging advanced analytics, businesses can stay ahead in the ever-evolving payments landscape.