An assemblage of violins, symbolizing payment orchestration

What Is Payment Orchestration (And Why Have It)?

Payment Orchestration describes the process of integrating and handling different payment service providers, acquirers and banks on a single, unified software layer. The Payment Orchestration software executes the complete payment processing, from validation to routing to settlement. 

The Payment Orchestration Layer / POL (or Payment Orchestration Platform / POP, respectively) bundles user and merchant accounts, acquirers, payment providers, fraud detection services, etc. to initiate, validate, route and process transactions involving those parties. In addition, it handles payment processes such as reconciliation, billing and settlement, payouts and reporting. 

Thus, a Payment Orchestration Layer acts as the entry point and core of a payment system. This approach differs tremendously from separately integrated PSPs. E-commerce platforms and online service providers don’t need to integrate every PSP and every acquirer separately. Instead, they can consume the unified API of the payment orchestration layer, benefiting from a reduced integration complexity. Moreover, a POL simplifies the maintenance and further development of the system for platform owners and for merchants. In the same vein, it eases the interaction with 3rd party service providers.

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A car computer of a modern car, presenting digital content and e-commerce options

Why Self-Built Automotive Payment Tech Will Make You Outrun Competitors

The future of automotive will not care how fast your car can go. Or how snappy it can look. Instead, innovation will centre around what a car can do. As a manufacturer, you already witness the shift towards connected vehicles, with high-end telematics and web-enabled computers under the hood. Those cars can communicate with external e-commerce applications and service platforms. And that brings technical challenges. One of the most pressing for car manufacturers: Providing a solid automotive payment system to handle all in-car commercial activities. 

One may be tempted to turn to the obvious choice: Turn-key payment software by 3rd parties. But once you scale up, the problem of such an approach will, too. And off-the-shelf solutions begin to show their drawbacks. 

The alternative would be to choose the payment orchestration model and build up your very own payment infrastructure together with a business and/or a software partner ideally with many years of experience in the payment domain. This article will help you answer the following questions:

  • Which use cases require connected car payments?
  • What are the advantages of custom-built payment solutions over standard 3rd-party  payment systems?
  • How will you benefit from payment orchestration realized with the help of a technology partner?

Let’s go for the answers! 

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A robot hand holding a vintage ladies' wallet, representing electronic wallets or e-wallets, respectively

What Is An E-Wallet – Definitions and Technical Distinctions

E-wallets are software programs which securely store data. This data is needed to enable the wallet owner to conduct payments online or at points-of-sale. And they do so by use of a specific device.  

That’s as close to an encompassing definition of e-wallets, or electronic wallets respectively, as we will probably get. But it’s also just the surface of what electronic wallets – sometimes also called digital wallets or (obsoletely) cyberwallets – can do. Over the last decade, e-wallet technology has found application to a variety of use cases. This article will cast a light on the term E-wallet, especially in the context of online payments. In the following paragraphs you’ll find: 

  • Definitions of certain types of e-wallets 
  • An overview of their common functionalities 
  • A breakdown of e-wallet-based payment 
  • An outlook on their role in the future of payments and e-commerce
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Bogdan Dinu, Head of Product at Thunes and interview partner in this cross-border payments talk.

Finquiry #2: Bogdan Dinu on Cross-Border Payments

Since the dawn of the Internet age, global economies have grown closer – as did the underlying financial systems. Today, we can digitally purchase a product with materials from Eastern Europe, produced in Singapore, refined and branded for sale in Canada, and eventually shipped to Brazil. All countries involved in this supply chain have to maintain financial relationships and this also necessitates numerous cross-border payments.

However, that’s easier said than done. Complying to all regulations, security processes and technical requirements necessary to move funds from one country to the other comes with high efforts and costs for service providers.

For our fintech interview series “Finquiry”, we have asked cross-border payments expert Bogdan Dinu to break down what goes behind facilitating effective and low-cost transfers.

Our Guest: Bogdan Dinu, Head of Product at Thunes

Our interview partner Bogdan Dinu is the perfect expert to lead us through the dense jungle of the cross-border payments landscape. As the Head of Product in leading global payments network Thunes, he is set to support the business through its next phase of global expansion. 

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A world map with a paper ship, symbolizing the world of payment.

Payment Around the World – Part 3

Asia, India, the Middle East

Payment around the world – where were we? In the previous articles of this series, we devoted ourselves to different payment landscapes of the globe. And with the trends and challenges, we found there.

But no matter which region we looked at: All of them stood on the verge of digital transformation or have crossed that line. China and the USA press ahead in terms of payment innovation, as we have seen in our second article. In other countries, digital payments are still in the process of taking hold in the populace. The changes they bring have already become apparent. Digital payment services play the role of an equalizer, especially for the unbanked people. Developments in Africa‘s and Latin America’s payment landscape, as detailed in the first article of this series, stand as an example for this.

We will see if those tendencies manifest in the last waypoints of our journey, too. So, let’s move on, shall we?  

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A picture of two piggy banks, symbolizing financial literacy and financial education in Germany

More Than Pocket Money – Financial Education in Germany

Financial education. It starts with simple questions. Just like this one:

For her 9th birthday, Emma asks her parents to put money on a savings account, instead of buying her presents. She rather wants to celebrate her next birthday in style, with party assets worth 200€. At a yearly interest rate of 5%, how many Euros must be put into the account to fulfill Emma’s birthday wish?

Sound familiar, such questions, right? We all had to answer a fair share of them in math class during 8th grade. Looking at them today, they still are tricky to answer for many of us. And you would have to explain your child, that putting €4000 on a savings account tears a big hole in your financial planning. And only under the premise that you would find a bank providing 5% interest on savings accounts. Which you wouldn’t. Emma, who already showed prudence in her financial behaviour not normally seen in her contemporaries, still has to face some hard truths.

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A compass resting on a world map, symbolizing the world of payment

Payment Around the World – Part 2

USA, Canada, Australia, China

When exploring the payment preferences of the world, you have to go places. In the first part of our article series, those places were Europe, Russia, Latin America, and Africa.

The takeaway: Hard cash dies hard in many parts of the world like Germany, Hungary, Russia, and Brazil. But digital payment services have taken up the fight. They give new options to emerging countries with vast numbers of unbanked people. Mobile access to finances and digital-only money accounts help integrate the unbanked, so they can become proactive contributors to the financial system.

But it’s a large world with a great number of payment landscapes still waiting to be sketched. In this article, we will take a good look at the clashing fintech forerunners USA and China, as well as Canada and Oceania. So, let’s go!

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A picture of an app store, displaying the apple logo, symbolizing Apple's new credit card solution Apple Card

Opinion: Apple Plays Its Card Just Right

Matthias Gall, co-founder of trimplement
Matthias Gall is looking forward to the disruptive potential of the Apple Card. 

In the Apple Keynote in on March 25th, Apple announced its very own credit card. It will be using the Mastercard scheme and will be issued in cooperation with Goldman Sachs.

As of now, Apple is an established player in the payments space. Their payment solution Apple Pay serves more than 252 million estimated users globally.

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Smartphone using Apple Pay at a mobile payment station. The text next to it numbers four problems Apple Pay faces.

4 Obstacles Apple Pay Has To Overcome on the German Market

Mobile payment is convenient.

Just ask your chosen fintech aficionado.

They will point to frictionless paying. To fast access to monetary assets, wherever you are. To tech-savvy China, where almost one-third of the population pays via a mobile device.

And to Apple Pay . The Californian tech giant strives to ban the buck from our pockets and purses. The replacement: A slick mobile payment service.

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