Reduction in Compliance Headaches Linked to Greater Adoption of Digital Business Payments

As digital becomes the preferred transaction channel for a growing number of companies, lawmakers worldwide have subjected their practices for the sharing and storage of online data to greater scrutiny.

Navigating this shifting regulatory environment can be difficult for eCommerce merchants, as it means juggling compliance with complex, often overlapping security and privacy rules while keeping payments seamless and convenient for customers.

PYMNTS research has found that regulatory burdens are a major challenge preventing migration to digital B2B payment solutions for about half of U.S. and Canadian merchants, as reported in the “Payments Orchestration Playbook,” a PYMNTS and Spreedly collaboration.

Get the report: Payments Orchestration Playbook

With about two-thirds of B2B companies now offering fully digital eCommerce capabilities and their online customers doing more shopping outside their native countries, businesses looking to support easy, convenient cross-border payments will need to maintain regulatory compliance in multiple markets.

Managing the Payment Process on One Platform

Finding technologies or industry partners that can help merchants easily manage their relationships with disparate payment service providers is key to remaining competitive.

Solutions such as payments orchestration could play a key role in supporting this by enabling companies to connect to their different payment partners more easily and allowing them to manage the payment process on one platform.

An increasing number of enterprises are turning to providers like Spreedly to roll out new payment options, Spreedly Chief Technology Officer Christopher Hudel told PYMNTS in an interview.

Read more: Orchestrated Payments Pave Over Rough Spots in ‘Last Mile’ of Customers’ Online Journeys

Those integrations take some of the pressure off legacy infrastructure, which ensures that companies have minimal latency and no downtime.

“[Application programming interfaces (APIs)] and their frameworks are always being upgraded, and security and compliance mandates change often too,” Hudel said.

Implementing payments orchestration or similar systems that easily support diverse options for customers while ensuring transactions can be processed smoothly and compliantly is set to become more important for merchants in the coming years — especially for eCommerce companies.

Keeping Pace With Regulations

Payments orchestration can offer businesses a competitive edge by aggregating all payment relationships in one place, simplifying the overall payments process and reducing the confusion caused by diverse compliance needs.

Finding the right payments orchestration partner could substantially reduce businesses’ regulatory burdens, allowing them to reserve valuable resources to create innovative products and services for customers.

Payment regulations will likely continue to shift in the next few years, especially as more businesses move online to conduct their daily transactions or meet other financial needs.

This also means cybersecurity needs are likely to intensify, with lawmakers keeping a close eye on how information and payments data is stored, shared and protected.