Protecting Retail Margins With Payment Orchestration

Key Takeaways: Enterprise retailers are losing margin due to failed payments, rising fraud costs, and high cart abandonment. Payment orchestration platforms like Yuno help increase approval rates, reduce costs, and simplify compliance — all of which help protect profitability.

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Why Are Retail Margins Under Pressure in 2025?

Despite the explosive growth of global e-commerce, enterprise retailers are still struggling with margin compression. Tariff costs, rising competition, and macroeconomic volatility are certainly major factors, but many retailers are becoming aware that their payment systems are also a significant source of revenue loss.

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Retailers are facing a battle on multiple fronts:

• An average 70% cart abandonment rate translates into billions in lost revenue annually. Very often, payment friction directly correlates with revenue loss. Every additional step, every unfamiliar checkout flow, and every payment method gap pushes potential customers toward abandonment.
• Retailers are also suffering from involuntary customer churn - failed payments due to high transaction declines, data entry errors, outdated billing information, or processing issues. It is estimated that between 5-10% of online purchases faill—significant for larger retailers processing thousands of transactions a day. 
• Payment operations are becoming costlier to manage. The cost of mitigating fraud has increased, interchange fees are on the rise, and regulatory compliance adding to technical & personnel costs.

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Payment orchestration offers a dynamic solution for these challenges, taking the complexity out of payments and giving retailers the ability to adapt faster to changing marketings and shopper expectations.

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How Does Payment Orchestration Protect Margins?

For retail businesses with multiple payment providers or regional operations, payment orchestration transforms complexity into a strategic advantage.

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‍Challenge: Cart Abandonment
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Solution: Payment orchestration platforms like Yuno tackle cart abandonment by streamlining the payment experience. Retailers can build a custom checkout experience that dynamically presents the most relevant payment methods based on user location, device, and behavior, reducing hesitation and confusion. 

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Fast load times, one-click checkout options, and intelligent retry mechanisms ensure that the payment process is not a barrier to conversion. By optimizing for speed, clarity, and ease of use, Yuno helps merchants significantly reduce drop-off at the point of payment.

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Challenge: Local Payment Method Preferences
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Solution: Global consumers expect to pay with familiar, trusted methods—whether that’s OXXO in Mexico, iDEAL in the Netherlands, or Alipay in China. Yuno solves for this by providing instant access to over 1,000 local and alternative payment methods through a single integration. M

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Merchants can activate or deactivate methods by market, customize how they’re displayed, and test performance in real time. This flexibility ensures that businesses can meet customer expectations in every region without the overhead of building and maintaining separate PSP integrations.

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Challenge: Payment Declines
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Solution: Yuno improves approval rates by leveraging smart routing logic that sends transactions through the optimal acquirer or PSP based on issuer behavior, past success rates, and transaction context. If a transaction fails, Yuno can automatically retry it using a different provider, card network, or even prompt the user to switch payment methods. 

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This intelligent routing increases the chances of successful payments and ensures fewer sales are lost to preventable declines.

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Challenge: Rising Cost of Fraud Mitigation
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Solution: Yuno integrates advanced fraud detection measures like 3DS and dynamic risk scoring directly into the payment flow. This allows retailers to offset the cost of manual checks and fraud mitigation measures, without adding unnecessary layers of friction into the checkout process. 

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Additionally, Yuno’s orchestration layer uses real-time machine learning to detect anomalies and block suspicious transactions before they reach the acquirer. By centralizing fraud prevention and automating key decisions, merchants lower their exposure while maintaining high approval rates—without paying for redundant or inefficient tools.

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Challenge: Multi-Regional Compliance
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Solution: Scaling payments globally introduces a web of regulatory requirements, from PSD2 in Europe to data localization laws in countries like India or Brazil. Yuno abstracts this complexity by embedding compliance features directly into its orchestration layer. Whether it's applying Strong Customer Authentication (SCA), managing tokenization requirements, or ensuring data is processed in-region, Yuno ensures that merchants remain compliant without slowing down operations. This allows companies to expand confidently into new markets while reducing legal and technical risk.

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The ROI: Measurable Impact on Revenue

Retailers implementing comprehensive payment orchestration typically see:

• 15-25% reduction in cart abandonment rates
• 2-5% improvement in authorization success rates
• 30-50% reduction in payment processing costs
• 60-80% faster time-to-market for new payment methods

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These aren't theoretical benefits – they're measurable improvements that directly impact bottom-line performance.

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Looking Forward: Payment Orchestration as Competitive Necessity

Payment orchestration is transitioning from competitive advantage to operational necessity. The retailers who will thrive are those who recognize that payment complexity isn't a challenge to endure – it's an opportunity to optimize.

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The question isn't whether to implement payment orchestration, but how quickly you can transform your payment infrastructure into a conversion-driving competitive advantage. In a market where over 70% of potential online sales are abandoned, the retailers who solve the payment puzzle will capture the revenue their competitors are leaving behind.

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The future of retail payments isn't about simplifying the ecosystem – it's about intelligently orchestrating its complexity. Those who master this orchestration will turn payment friction from a conversion barrier into a competitive moat.

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Ready to transform your payment infrastructure? Discover how Yuno's payment orchestration platform can optimize your conversion rates while reducing operational complexity. 

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Contact our team to schedule a personalized demo and ROI analysis.

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