Smart Routing for Payments: The Essentials You Must Know

Plural Online by Pine Labs

The world of internet payments has evolved at a breakneck speed in recent years. Local payment service providers, also known as PSPs, are becoming increasingly popular, and new laws (particularly PSD2) help collect online payments with great efficiency.

Many components are required to offer a seamless purchase experience to a customer. We often overlook what goes on behind the scenes to make this possible.

Intelligent Payment Routing is a technology that enables uninterrupted transactions by using data analytics to decide which acquiring bank is most likely to accept the payment. An acquiring bank processes transactions on behalf of the merchant company.

Over the last few decades, technology has changed the payment routing environment, and it will continue to do so in the future. E-wallets, virtual cards, and one-click online transactions, among other solutions, meet the demand for newer, more intuitive payment methods.

According to Juniper Research, the online sales of tangible items will increase from $3.3 trillion in 2020 to $4.4 trillion in 2025. From banks and credit unions to fintech, a broad spectrum of financial organisations manages such large volumes of transactions. Businesses must provide various payment options, including bank accounts, credit cards, debit cards, digital wallets, etc., to maintain smooth transactions.

What is smart payment routing?

When you, as a business, integrate multiple payment service providers (PSPs) into your payment structure, you adopt smart payments routing.

Smart routing payment gateway considers your business’s current location, your customer’s location, currency, and payment options to ensure the bank approves a transaction. If the transaction fails, the routing platform immediately directs it to the next best channel. The system involves the analysis of past data to improve the success of future transactions.

If you have a digital business, you could use intelligent routing payments to your advantage. It helps reduce transaction decline rates by connecting the payment processor with the right bank. Additionally, you can benefit from lower transaction fees.

Smart routing payments can also be beneficial for large organisations due to their sales volume and geographic reach. It interacts with a large number of gateways and processors to suit the needs of every kind of customer.

Advantages of Smart routing

  • Higher success rates

When a payment gateway directs a transaction to the most appropriate acquiring bank, it ensures that the payment goes through without a hitch. It thus guarantees that your business does not miss out on prospective purchases.

  • Lower transaction costs

Transaction costs vary across gateways, and you can leverage this to save expenses for your company by choosing the correct gateway.

For example, if your company is in India and your customer is in the United States, using a gateway that accepts Rupees will save you money on currency conversion.

  • Customer satisfaction

Customers demand a quick and painless payment process. In the event of a transaction failure, customers are more likely to abandon the checkout page and seek out other retailers.

Providing a diverse range of payment alternatives and a quick and secure checkout process can boost customer satisfaction and loyalty — both critical measures for any organisation.


The Plural Console is a platform that provides dynamic routing to achieve the highest success rate for all incoming payments. It offers visibility into settlements, transaction data, and reconciliations, and it facilitates the management of all these functionalities from a single dashboard.

The console also saves payment details of customers in a secure global vault. This method enables faster checkout while maintaining the privacy of sensitive data. The Plural console integrates with multiple PSPs and gateways with ease. It is a one-stop shop for all your integrations, with deeper insights, ease of use, fast processing, and a unified dashboard.

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