- Nuvei’s (TSX:NVEI) recent survey shows three-quarters of eCommerce businesses need greater levels of support to optimize their payments function
- Nuvei partnered with Edgar, Dunn & Company (EDC) to survey over 100 international businesses across a variety of verticals that sell online to consumers
- Nuvei concludes that there is a clear role for payments orchestration in providing the control online businesses need to effectively optimize their backend payments flow
- The company believes that without Payment Orchestration businesses are unable to set specific and intricate rules for payments acceptance
- Nuvei is the Canadian fintech company accelerating the business of clients around the world
Nuvei’s (TSX:NVEI) recent survey shows three-quarters of eCommerce businesses need greater levels of support to optimize their payments function.
This is due to a reliance on an increasing number of payment providers.
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
The survey showed that in an increasingly complex landscape, more than half of online businesses are now using at least six payment providers. This is to optimize their checkouts as they look to scale into new markets, win new customers, and grow revenue.
A third of the businesses have direct acquiring relationships with at least five banks.
Nuvei reported that the rise of multi-vendor model is a direct result of eCommerce businesses realizing the growth opportunity. 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.
Nuvei further reported that 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 showed that 59 per cent 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. Of the businesses surveyed, only 23 per cent of online businesses’ checkouts now have three available payments methods or less.
Understanding Payment Orchestration
Nuvei concludes that there is a clear role for Payments Orchestration in providing the control online businesses need to effectively optimize their backend payments flow. The company is of the view that without Payment Orchestration businesses are unable to set specific and intricate rules for payments acceptance to boost conversion and revenue. They also do not have full visibility of their performance with which to make informed decisions.
Businesses shared with Nuvei a variety of specific motivations for implementing a Payment Orchestration solution. It includes 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.
Comments on Research
Philip Fayer, Chair and CEO of Nuvei, commented on the research.
“Our mission is to connect our customers to their customers, wherever they are and however way they want to pay. Offering an industry-leading Payment Orchestration Platform is critical to doing that successfully. It is clear from our research that more and more businesses recognize the need for orchestration. Also, many are still struggling to understand what this means in practice. This whitepaper provides excellent insights into implementing Payment Orchestration effectively.”
“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.”
Peter Sidenius, Edgar, Dunn & Company CEO, also commented on the results.
“It is key for businesses to manage payments efficiently as it is the last step in the purchase process. Payments have become increasingly complex, especially for businesses with various subsidiaries, operating in multiple geographies, selling in different currencies and offering different payment methods. Payment Orchestration is considered by an increasing number of businesses as the solution to retain control of their payment stack. It is a major driver to generate additional revenue, optimize payment acceptance cost and increase operational efficiency.”
Methodology
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 was administered online to more than 100 international businesses that sell online to consumers. The sample included respondents working in the finance, payments or commercial fields.
About Nuvei
Nuvei Corp. (TSX:NVEI) is the Canadian fintech company accelerating the business of clients around the world. The company’s modular, flexible and scalable technology allows leading companies to accept next-gen payments. It offers all payout options and benefit from card issuing, banking, risk and fraud management services.
