How Yuno’s payment orchestration solution solves the challenges of cart abandonment, payment failures, and catering to payment preferences.
Online delivery apps are a trillion-dollar industry; they enable consumers all over the world to quickly and conveniently purchase essential products, from food to medicine and household products. Despite processing billions of transactions daily, delivery apps experience payment challenges that directly impact their ability to serve the needs of their customers and generate revenue for the merchants on their platform.
But payment orchestration is changing all of that. By helping delivery apps streamline their payment operations, intelligently route payments to their processors, and quickly resolving payment issues, payment orchestration solutions like Yuno are becoming a growth partner for these essential businesses.
Payment challenges experienced by delivery apps
Because payments are such a core part of online delivery, payment issues are a big problem for customers, merchants, and the delivery platform. In fact, the average cart abandonment rate for delivery apps currently sits at an alarming 70%, which translates to a lot of potential revenue loss.
Here are some of the common payment challenges experienced within delivery apps:
- Limited Payment Options: There’s nothing more frustrating for a consumer than trying to make a payment at checkout and realizing your preferred payment method isn’t offered. While most delivery apps offer the prominent payment methods — credit cards, debit cards and select digital wallets — consumers today have diverse preferences for various alternative payment methods. Not offering those payment methods at checkout leaves delivery apps and their merchant partners at risk of losing customers.
- Payment Issues: Payment issues are common, but that doesn’t mean customers won’t be annoyed when it happens to them. Whether a payment failure occurs due to an error on the customer’s part (i.e. they put in the wrong payment details) or because of an issue with the processor or acquirer bank, the delivery app often bears the brunt of the customers’ frustration. Over time, this can quickly erode customers’ confidence and trust.
- High Processing Costs: High processing fees cut into a delivery app’s profitability. While many delivery apps use multiple payment processors, and therefore could strategically route payments to providers based on their processing costs, in practice this is challenging to do at scale. Furthermore, routing payments between multiple providers requires precision, otherwise there’s the added risk of a processing issue or payment failure.
While payment challenges are a delivery app’s worst nightmare, they can also be strategically addressed — thanks to payment orchestration.
How Yuno solves payment challenges for delivery apps like Rappi
Rappi is a household name in Latin America. With over 35 million users across 400 cities, Rappi isn't just an online food delivery app, it also provides banking, travel planning, insurance, and credit services also.
Like most delivery apps, Rappi relies on an organized and efficient payment operation. A single issue with payment acceptance, or a disruption with one of their many payment providers, can lead to lost revenue and erode customer trust.
That’s why Rappi’s payments team partnered with Yuno, leveraging payment orchestration to integrate new payment methods, cut down response time for payment anomalies, and streamline its overall payment operations.
Integrating 300+ payment methods
To support the diverse payment preferences and needs of their customers — many of whom are unbanked or prefer not to use traditional credit or debit cards — Rappi needed to integrate different alternative payment methods. However, integrating each new payment provider required Rappi to allocate development resources and could take months to implement.
With Yuno, Rappi has access to over 300 payment methods — from digital wallets to buy now pay later (BNPL), bank transfers and cards — through a single, no-code API integration. Yuno cut Rappi’s implementation time for new providers down to zero, and allowed them to add new payment methods into their checkout experience with just a few clicks.
One-Click Checkout
While integrating new payment methods was key, Rappi also wanted to maintain a unified and user-friendly checkout experience.
With Yuno’s Checkout solution, Rappi could maintain full control over the checkout experience across different markets. It could select which payment methods were shown to users based on regional payment preferences. Most importantly, Rappi’s payments team had granular control over the visual components of their checkout experience across any device.
Resolving payment issues in real-time
With over 20 payment processing providers in their system, it would take Rappi’s payments team several minutes to respond if a processing issue or latency with a specific provider was detected. This meant potentially losing thousands of transactions due to payment issues.
With Yuno’s Monitors product, Rappi was able to respond to payment anomalies in milliseconds. Monitors allowed Rappi’s payments team to configure a real-time alert every time a provider’s approval rate dropped below a certain threshold (either by percentage or number of transactions). Additionally, Monitors would automatically direct traffic to another of Rappi’s payment providers, returning traffic once the service disruption was resolved.
Watch: How Yuno helped Rappi unlock simpler, more efficient payment processes
Optimizing every payment with Smart Routing
Rappi is just one example of how payment orchestration through Yuno can deliver better payment outcomes to delivery apps. In addition to checkout optimization and payment anomaly detection, our Smart Routing solution allows delivery apps to create custom routes that maximize approval rates and reduce costs. Furthermore, if a payment fails through one provider, Smart Routing automatically retries the payment through another provider in order to increase approval rates.
Discover the power of payment orchestration
Yuno provides a comprehensive solution that empowers delivery apps to optimize their payment strategy, reduce costs, and improve their overall customer experience. With Yuno, you’re not just getting a technology solution, but rather an integrated partner there to help you deliver faster, smoother, and more frictionless payment experiences.
Want to see our payment orchestration solutions in action? Book a demo.
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