Mergers and acquisitions are quite invigorating—albeit potentially stressful—for both the acquiring companies and those being acquired. SaaS acquisitions, in particular, can be very complex, especially for companies that provide payments and financial services.

Transferring payments and merchant data from one end to another can be challenging, as you have to deal with regulatory compliance and data integrity. This is where payment platform orchestration can help. With the right provider and systems, organizing and moving all that data becomes easier—whether you're the acquirer or the acquiree.

What is Payment Platform Orchestration?

Payment platform orchestration consolidates integrations with different payment services, such as payment methods and payment service providers (PSPs), into a single platform. Merchants can route transactions across these services based on custom rules and conditions.

Payment orchestration can also involve integrating and managing various payment service providers, acquirers, payment gateways, and banks within a unified software layer. It simplifies front-end and back-end integration, ensuring efficient payment processing from validation to routing and settlement.

How payment platform orchestration simplifies M&As

Payment platform orchestration solutions like PRECZN centralize payment data and streamline the integration of different systems. This reduces the time and complexity involved in transferring merchant accounts, customer data, and payment methods from one company to another. 

Orchestration platforms allow for seamless data migration by connecting the acquirer's payment systems with the acquired company's infrastructure. Instead of manually transferring data or managing multiple legacy systems, orchestration paves the way for a more efficient process, often reducing the timeline for full integration from months or years to just weeks. This is particularly important in fast-paced M&A environments.

How Payment Platform Orchestration Benefits Acquirers

Acquiring companies can implement the M&A and integration process much more effectively using a platform orchestration solution. Consider the following:

Faster Data Porting and Integration

Integrating disparate systems can be highly complex and time-consuming if you're acquiring a firm with different payment service providers. Payment platform orchestration allows acquirers to quickly port over payment data by providing an API-based connection to legacy and modern payment processors.

At PRECZN, we've seen this practice reduce the data migration timeline from years to under 30 days. This accelerated integration allows the acquirer to start monetizing transactions much faster.

Ownership and Control of Payment Data

One of the biggest advantages for acquirers using payment orchestration is owning and controlling all payment data, including customer information, transaction history, and merchant profiles. 

Without an orchestration platform like PRECZN, acquirers may need to rely on the existing payment processor of the acquired company, which often charges hefty fees to transfer data or makes the process cumbersome. 

With orchestration, acquirers gain complete control over where the data is stored and how it's used, giving them the flexibility to route it to their preferred payment providers or systems.

Eliminating Manual Data Transfer

Traditional M&A processes for companies with disparate payment systems can require manual CSV data transfer, mapping, and uploading. This process can take months, if not years, to complete. 

With payment platform orchestration, this manual work is eliminated, so companies benefit from automated data transfer through API connections. This significantly reduces errors and ensures regulatory compliance.

Scalability and Flexibility for Future Growth

Payment orchestration provides acquirers the scalability and flexibility needed to accommodate future growth. As an acquirer adds more companies to its portfolio or expands into new markets, the orchestration platform can handle the increased volume of transactions, multiple currencies, and varying regulatory requirements without overhauling the payment infrastructure. 

If you're an acquiring company, this flexibility allows you to continue scaling without disrupting your payment systems.

Ability to Leverage Additional Fintech Services

Through payment orchestration, acquirers can integrate additional financial services, such as banking-as-a-service (BaaS) or lending solutions, to enhance their offerings even more. 

When you have a unified system in place, you can quickly onboard these additional services and offer them to the acquired company's customer base, creating new revenue streams and increasing the overall value of the acquisition.

How Payment Platform Orchestration Benefits Companies Being Acquired (or Those Seeking to be Acquired)

On the flip side, platform orchestration can also enhance the appeal and readiness of companies seeking acquisition. Consider the following:

Increased Attractiveness to Acquirers

If you're a company seeking to be acquired, having a payment orchestration platform makes you far more attractive to potential buyers. 

Why? Consider this: one of the most valuable assets in any acquisition is the ability to quickly and efficiently integrate with the acquirer's systems. When a company has centralized payment data that can be easily ported over, it minimizes the workload for the acquirer and reduces integration timelines, making the acquisition process smoother and faster. 

Ownership of Customer and Payment Data

Companies that own their payment data can easily transfer that information to the acquirer without going through complex processes or paying high fees to legacy payment providers. This ownership includes critical customer data such as KYC (Know Your Customer) information, payment history, and transaction data. 

Without an orchestration platform, companies can face difficulties in retrieving this data, as the payment processor usually holds it. Having ownership of all that info simplifies the M&A process and makes the company more appealing to acquirers.

Focus On Core Business Operations During Transition

One of the biggest challenges for companies being acquired is ensuring that day-to-day operations continue smoothly during the transition. Payment platform orchestration helps you focus on core business activities like customer service and financial performance, rather than being bogged down by manual data transfers or payment processing issues. 

With a streamlined payment infrastructure, the transition is less disruptive, which preserves customer satisfaction and maintains business continuity.

Long-term Growth Potential

For companies not immediately seeking to be acquired but preparing for future growth, payment platform orchestration helps future-proof their payment systems. 

When you integrate payment methods, gateways, and financial services into a unified platform, you position yourself as a scalable and attractive acquisition target.

Not only that but having a flexible, modern payment infrastructure ensures that your company can handle increased transaction volumes and expand into new markets more efficiently, enhancing its long-term value.

Reduced Dependency on Legacy Systems

Companies with legacy payment systems often struggle to transfer data to new platforms or processors, which can delay or complicate acquisitions. By adopting a payment orchestration platform, these companies reduce their dependency on outdated infrastructure and gain the ability to work with modern payment providers.  

Final Words

Payment platform orchestration plays a crucial role in simplifying the M&A process. Done right, it offers benefits to both acquirers and companies being acquired. 

The right platform orchestration partner can help centralize payment data and streamline integrations, which ultimately drives faster transitions and future-proofs payment systems for long-term growth.

Check out PRECZN