The growing cost of fragmented payments
Digital commerce in Brazil is expanding at a pace that few markets can rival. Pix processed nearly 80 billion transactions in 2025, with 93% of adult Brazilians now using the system, and projections suggest it will capture 51% of Brazil's e-commerce payment share by 2027. Consumers expect installment-based credit card purchases, alternative payment methods, and checkout experiences that feel native to their habits. Meanwhile, businesses operating across Latin America face a web of local regulations, diverse payment preferences, and cross-border processing challenges that grow more complex with every new market entry.
For enterprises in e-commerce, travel, fintech, insurance, SaaS, retail, and subscription services, the payment stack has quietly become one of the most consequential pieces of technology infrastructure. Yet most companies still manage it through a patchwork of point-to-point integrations with individual payment service providers, each built and maintained separately. The result is a system that is expensive to operate, slow to change, and fragile under pressure.
The numbers tell the story. Industry estimates suggest that roughly 30% of payment transactions fail due to declines, representing billions of dollars in lost revenue across sectors. Cross-border transactions carry even higher failure rates, and the cost of processing payments through fragmented stacks often includes hidden fees that finance teams cannot easily track. For companies scaling in Brazil and across Latin America, this is not a back-office concern. It is a strategic problem that directly impacts revenue, customer experience, and the ability to enter new markets.
This is the problem payment orchestration was built to solve.
What is payment orchestration?
Payment orchestration is a technology layer that sits on top of a company’s existing payment stack. It integrates and coordinates all payment service providers (PSPs), payment methods, fraud tools, and financial operations through a single, unified interface.
Think of it as an operating system for payments. Just as an operating system manages the relationship between hardware and software, a payment orchestration platform manages the relationship between a merchant and the sprawling ecosystem of acquirers, gateways, local payment methods, fraud prevention services, and settlement systems. One integration replaces dozens.
A modern payment orchestration platform handles several core functions:
Checkout experience: A seamless, localized checkout tailored to each market’s consumer preferences. In Brazil, that means offering Pix, parcelamento, and boleto. In Southeast Asia, it means GrabPay and local wallets. Globally, it means adapting to over 300 payment methods without rebuilding the frontend for each one.
Smart routing: Each transaction is dynamically directed to the most optimal PSP based on cost, success rates, geography, card issuer, and real-time processor health.
Fallback and retry logic: Failed transactions are automatically rerouted to alternative processors, reducing the revenue lost to payment declines.
Unified reconciliation: Automated three-way reconciliation across payment data, PSPs, and banks provides a single source of truth for finance teams.
Tokenization and security: Full token lifecycle management, including network tokenization, PCI-compliant card vaults, passkey-based authentication, and adaptive 3D Secure.
Analytics and cost observability: Granular visibility into scheme fees, interchange costs, and acquirer charges, allowing payment teams to identify and eliminate hidden expenses.
Why enterprises across industries are adopting orchestration now
Payment orchestration is not a niche solution for a single vertical. It addresses structural challenges that are common across any business processing digital payments at scale.
E-commerce and retail
Online and omnichannel retailers in Brazil face intense competition for conversion rates. Offering the right payment method at checkout is table stakes: research indicates that 69% of consumers will abandon a cart if their preferred method is not available. Orchestration enables retailers to present localized payment options dynamically, manage installment flows across multiple PSPs, and route transactions to reduce costs and maximize approval rates. For retailers expanding across Latin America, it also eliminates the need to build separate payment integrations for each new market.
Travel and aviation
The travel industry processes some of the most complex payment flows in digital commerce: multi-currency bookings, high-value tickets, ancillary revenue streams, cross-border transactions, refund management, and integration with global distribution systems like Amadeus and Sabre. Airlines alone spend over $20 billion annually on payment processing. Orchestration converts high-latency cross-border payments into successful local transactions by routing through domestic acquirers, improving success rates and cutting fees. It also supports the promotional engines, loyalty integrations, and multi-leg booking flows that travel demands.
Fintech and financial services
Fintechs operating across Latin America must support a broad range of payment rails while meeting strict regulatory requirements that vary by country. Payment orchestration provides the integration layer that lets fintechs launch new payment products quickly, route transactions intelligently across providers, and maintain compliance without building bespoke infrastructure for each market. For digital banks, lending platforms, and embedded finance providers, it accelerates time to market and reduces operational overhead.
SaaS and subscription businesses
Subscription models depend on recurring payment success. Involuntary churn from failed card renewals, expired credentials, and declined transactions is a silent revenue killer. Orchestration platforms address this through intelligent retry engines configured across dozens of parameters (decline codes, card bin, ticket size, region, payment method), network tokenization that keeps credentials current when cards are reissued, and account updater services that reduce passive churn without requiring customer action.
Insurance
Insurance companies processing premium collections, claims payouts, and policy renewals across multiple markets need reliable, compliant payment infrastructure. Orchestration simplifies multi-currency settlement, automates reconciliation, and provides the audit trails that regulated industries require. It also enables insurers to offer local payment methods that improve collection rates and customer satisfaction.
The Brazil factor: Pix, parcelamento, and local payment complexity
Brazil is not just another market. It is one of the fastest-evolving payment ecosystems on the planet, and enterprises operating here need to understand its particularities to compete effectively.
Pix is reshaping the payment landscape
Since its launch by the Central Bank in 2020, Pix has fundamentally altered how Brazilians pay. With 93% adult adoption, nearly 80 billion transactions in 2025 alone, and merchant fees averaging between 0.22% and 0.33% (compared to 1–2% for card networks), Pix is now the dominant digital payment method in Brazil. The Central Bank continues expanding its capabilities: Pix Parcelado (installment payments) launched in April 2025, Pix Automático enables recurring payments for subscriptions and utilities, and contactless Pix arrived in 2025.
Installments are non-negotiable
Brazilian consumers are accustomed to parcelamento: splitting purchases across multiple monthly installments on credit cards, often interest-free. Whether a customer is buying a plane ticket, an insurance premium, a software subscription, or a household appliance, offering installment options is not a competitive advantage in this market; it is a baseline requirement. A payment orchestration platform manages installment flows across multiple PSPs without requiring bespoke integrations for each one.
Fraud demands a layered defense
Brazil ranks among the highest globally for chargeback rates (3.48–3.55%, compared to 0.47% in the United States). Fraudulent transactions average 60% higher in value than legitimate ones. Generic fraud prevention tools designed for North American or European markets frequently underperform here. Effective fraud management in Brazil requires adaptive 3D Secure, real-time risk scoring, and the ability to integrate multiple anti-fraud providers into a layered strategy that reflects the specific attack patterns of this market.
Regulatory evolution demands agility
Brazil’s Central Bank continues introducing new regulations, from Pix Parcelado standardization to Open Finance mandates and data protection requirements under the LGPD. A modular, API-driven orchestration platform allows enterprises to adapt to regulatory changes without rebuilding their payment stack.
What to look for in a payment orchestration platform
Not all orchestration platforms deliver the same value. For enterprises evaluating providers, these are the capabilities that matter most:
- Global PSP coverage with local depth: The platform should connect to 300+ PSPs and support local payment methods across every market you operate in, including Pix, boleto, and domestic card brands like Elo and Hipercard in Brazil.
- Intelligent, no-code routing: Rule-based and machine learning-driven routing configurable without engineering resources, adapting in real time to PSP health, cost, and success rates.
- Industry-specific capabilities: Whether you need GDS integration for travel, retry engines for subscriptions, premium collection flows for insurance, or high-volume checkout optimization for retail, the platform should support your specific use cases.
- Enterprise-grade reliability: 99.999%+ uptime, sub-100ms processing latency, and horizontally scalable architecture that handles traffic surges during peak seasons.
- Unified analytics and reconciliation: A single dashboard for payment performance, cost observability, funnel analysis, and automated three-way reconciliation across PSPs and banks.
- Open and composable architecture: Modular design that lets you adopt individual components (routing, vault, checkout) without replacing your entire stack, with the option to self-deploy if compliance or data sovereignty requirements demand it.
- Robust fraud and authentication tools: Adaptive 3D Secure, passkey-based authentication, connection to multiple third-party anti-fraud providers, and configurable risk rules tailored to high-fraud markets like Brazil.
How Juspay solves payment complexity at scale
Juspay's investment in Brazil goes beyond connecting to local PSPs. The company has built product capabilities specifically for the Brazilian market that no other orchestration provider offers at the same depth.
Pix Biométrico (1-click Pix) is built on the Central Bank's Open Finance framework, specifically the Jornada Sem Redirecionamento (JSR). Instead of the standard QR code or copy-paste flow, Pix Biométrico lets consumers authenticate a Pix payment with a single tap using biometric verification (face or fingerprint), directly inside the merchant's checkout. After a one-time setup, every subsequent Pix payment becomes a one-click experience. The SDK is fully white-label, so the merchant retains complete brand control, with intelligent fallback to traditional Pix if biometrics are unavailable.
Open Finance integration positions Juspay as an ITP-certified (Initiator of Transaction of Payment) participant in Brazil's Open Finance ecosystem, the largest in the world with over 100 million customers and billions of weekly API calls. This enables payment initiation directly from the checkout page, consent lifecycle management, and data access flows that power personalized financial experiences. Juspay manages the regulatory complexity behind these integrations, including compliance with evolving BCB specifications, so that merchants do not need to build or maintain Open Finance infrastructure themselves.
Click to Pay with Visa and Mastercard makes Juspay the first technology provider in Brazil enabled for both Visa and Mastercard Click to Pay with passkey-based biometric authentication. This eliminates the need for consumers to manually type card numbers, expiration dates, and CVVs at checkout, replacing the entire flow with a single authenticated click. For merchants, the integration is plug-and-play through Juspay's unified SDK, with liability shift away from the merchant, reducing chargeback risk.
These are not peripheral features. They represent the specific infrastructure that enterprises operating in Brazil need to convert more customers, reduce checkout friction, and stay ahead of the Central Bank's regulatory trajectory.
Four pillars, not just one layer of the stack
Most payment orchestration providers focus on a single layer of the stack: routing transactions between PSPs. Juspay takes a fundamentally different approach by delivering four integrated pillars that, together, cover the full payment value chain.
Orchestration is the foundation: intelligent routing, fallback logic, PSP health monitoring, and cost optimization across 300+ global connectors. But orchestration alone does not solve the full problem.
Checkout is the layer that directly touches the customer. Juspay provides a native, customizable checkout experience across web, iOS, and Android that adapts to each market’s payment preferences. For returning users, it surfaces preferred methods and saved credentials, reducing friction and improving conversion. Businesses can A/B test checkout flows, prioritize payment methods by segment, and localize the experience without engineering effort.
Intelligent Token Platform (ITP) manages the complete token lifecycle across schemes and PSPs. Network tokens issued by Visa, Mastercard, and other networks replace raw card data, improving authorization rates (issuers trust network tokens more than raw PANs), reducing fraud, and ensuring continuity when cards are reissued or expire. The ITP includes account updater services and a PCI DSS 4.0-compliant vault, making it a critical layer for any business processing recurring payments, loyalty redemptions, or subscription products.
Agentic Commerce represents the next frontier. As AI agents increasingly handle purchasing, customer service, and rebooking on behalf of consumers, payments need to happen within those agent-driven flows. Juspay’s agentic commerce capabilities allow AI-powered systems to initiate, authenticate, and complete transactions securely without requiring the customer to leave the conversational interface. For enterprises exploring AI-powered assistants, automated upsell flows, or conversational commerce, this is the infrastructure that makes those experiences transactional, not just conversational.
This four-pillar approach means Juspay is not simply another vendor in your payment stack. It is the operating system that sits between your business logic and the entire payment ecosystem, handling everything from the moment a customer sees a checkout button to the moment the transaction is reconciled with your bank.
Security and authentication built for complexity
On the security front, Juspay offers a layered approach that goes beyond standard implementations. Network tokenization replaces sensitive card data with scheme-level tokens issued directly by Visa, Mastercard, and other networks, improving authorization rates while reducing fraud exposure. The platform supports adaptive 3D Secure workflows configurable per PSP, per risk level, and per market, presenting authentication challenges only when genuinely needed. Juspay also supports passkey-based authentication, enabling biometric and device-bound credential flows that align with the industry’s shift toward passwordless payment experiences.
For fraud management, Juspay takes a connector-agnostic approach. Rather than locking merchants into a single solution, the platform integrates with multiple third-party anti-fraud providers, allowing enterprises to build layered defense strategies that combine pre-authorization risk scoring, post-authorization checks, and chargeback management. This flexibility is especially valuable in high-fraud markets like Brazil, where no single tool covers every attack vector effectively.
Proven at scale across industries
Payment orchestration is not a theoretical proposition at Juspay. It is the platform’s core product, used by every merchant. The results are documented across industries: Agoda used Juspay’s orchestration layer to integrate local payment methods across five countries in a single deployment; large e-commerce platforms rely on it to route millions of daily transactions through optimal processors; insurance and fintech companies use it to manage multi-market compliance and reduce involuntary churn. The case studies, benchmarks, and performance data are available for review during the evaluation process.
Open-source transparency with Hyperswitch
Juspay’s Hyperswitch is the world’s first open-source modular payments platform, licensed under Apache 2.0 with PCI certification. Enterprises can evaluate it through code review and self-deployment rather than month-long RFP processes. The modular architecture lets companies adopt individual components (intelligent routing, checkout, token vault, reconciliation) on top of their existing stack, without vendor lock-in.
From cost center to growth engine: the business case
For CTOs and payment leaders, the business case for orchestration is straightforward:
| Outcome | How orchestration delivers it |
| Higher authorization rates | Smart routing, intelligent retries, and real-time PSP health monitoring recover transactions that would otherwise be lost. |
| Lower processing costs | Cost-based routing, local acquiring for cross-border transactions, and fee observability tools reduce the total cost of payment acceptance. |
| Faster market expansion | Adding new PSPs and payment methods takes hours instead of months, enabling rapid entry into new geographies. |
| Reduced fraud losses | Adaptive 3D Secure, multi-provider fraud tools, and region-specific risk rules reduce chargebacks and fraud exposure. |
| Lower involuntary churn | Network tokenization, account updater services, and intelligent retry engines keep subscriptions and recurring payments alive. |
| Operational efficiency | Automated reconciliation, unified analytics, and no-code configuration free payment teams from manual work. |
| Future-readiness | Modular architecture adapts to new rails (Pix Parcelado, Pix Automático, Open Finance, agentic commerce) without rebuilding your stack. |
Ready to transform your payment stack?
The payment landscape in Brazil and across Latin America is evolving rapidly. Enterprises that treat payments as a strategic asset, rather than a back-office function, will capture more revenue, reduce costs, and deliver the seamless experiences that customers expect.
Juspay’s team of payment experts is ready to help you assess your current payment architecture, identify revenue opportunities, and build a roadmap for orchestration. Whether you need to improve authorization rates, reduce cross-border fees, integrate Pix and local payment methods, lower involuntary churn, or unify your payment operations across multiple markets, Juspay has the technology and the expertise to get you there.
Book a personalized demo
Click here to speak with our payments team to discover how Juspay can simplify your payment operations across every touchpoint.
Key Takeaways
- Pix has permanently reset Brazil's payment baseline. With 93% adult adoption and merchant fees of 0.22–0.33% compared to 1–2% for card networks, Pix is not a payment method enterprises can treat as optional - it is the market's default rail, and it is actively expanding into installments, recurring payments, and contactless flows.
- Parcelamento is a conversion requirement, not a feature. Brazilian consumers expect to split purchases across multiple monthly installments regardless of category - travel, insurance, SaaS, or retail. A payment stack that cannot manage installment flows across multiple PSPs natively will lose customers at checkout before pricing or product ever becomes relevant.
- Brazil's 3.48–3.55% chargeback rate - the highest among major economies - demands a fraud strategy built specifically for this market. Generic tools designed for North American or European attack patterns consistently underperform in Brazil. Effective defense requires adaptive 3D Secure, real-time risk scoring, and integration with multiple anti-fraud providers in a layered architecture.
- Regulatory agility is now a competitive advantage. Brazil's Central Bank is continuously expanding Pix capabilities, advancing Open Finance mandates, and enforcing LGPD data protection requirements. Enterprises running bespoke PSP integrations must implement every Central Bank change separately, for each provider. A modular orchestration layer absorbs these changes in one place.
- Most orchestration platforms solve one layer. Juspay solves four. Routing alone does not address checkout conversion, token lifecycle management, or the emerging requirement to process payments inside AI agent-driven flows. Orchestration, Checkout, the Intelligent Token Platform, and Agentic Commerce together cover the full payment value chain - from the customer's first tap to bank reconciliation.
- Juspay's ITP certification and Pix Biométrico represent Brazil-specific infrastructure that goes beyond PSP connectivity. ITP certification enables payment initiation through Open Finance rails directly from the checkout page. Pix Biométrico replaces QR code flows with a single biometric tap. These are not peripheral features - they are the specific capabilities that determine checkout conversion in the Brazilian market.
- Fragmented payment stacks generate five compounding costs that rarely appear on a single invoice: failed transactions, cross-border processing losses, hidden scheme fees, engineering maintenance overhead, and involuntary subscription churn. They persist precisely because they are difficult to attribute to the payment stack - until they are measured against an orchestrated baseline.
Frequently Asked Questions
What is payment orchestration and how does it work in Brazil?
Payment orchestration is a software layer that connects multiple payment service providers, acquirers, local payment methods, and fraud tools through a single integration - routing, retrying, and reconciling every transaction centrally. In Brazil, this means managing Pix, parcelamento, boleto, Elo, and Hipercard through one platform, with real-time routing logic that adapts to PSP health, cost, and authorization rate data. One integration replaces dozens of point-to-point PSP connections.
What is the difference between a payment orchestration platform and a PSP?
A payment service provider (PSP) is a third-party company that processes payments through its own acquiring network. A payment orchestration platform connects to many PSPs simultaneously and manages how transactions flow across them - routing each transaction to the optimal provider, retrying failures through fallback paths, and reconciling settlement data across all providers in one place. A PSP processes a transaction. An orchestration layer decides which PSP processes it and what happens when it fails.
Why does Brazil have the world's highest chargeback rate?
Brazil's chargeback rate of 3.48–3.55% compared to 0.47% in the United States - reflects several compounding factors: high card-not-present (CNP) fraud rates driven by malware and identity fraud, historically low 3D Secure adoption relative to transaction volumes, and an easy consumer dispute process requiring only a call to the issuing bank. Generic fraud tools designed for North American or European markets frequently underperform because the specific attack patterns in Brazil differ significantly.
What is Pix Biométrico and how does it improve checkout conversion?
Pix Biométrico - also called 1-click Pix is built on the Central Bank's Open Finance framework via the Jornada Sem Redirecionamento (JSR). Instead of scanning a QR code or copying a payment key, the consumer authenticates a Pix payment with a single biometric tap (face or fingerprint) directly inside the merchant's checkout. After one-time setup, every subsequent Pix payment becomes a one-click experience - reducing the friction at the stage of checkout where abandonment rates are highest.
How does payment orchestration help with Pix Automático and recurring payments in Brazil?
Pix Automático enables recurring payments to be debited directly from a customer's bank account without a credit card - opening subscription and recurring billing to the estimated 60 million Brazilians who do not hold cards. An orchestration platform with ITP (Initiator of Transaction of Payment) certification manages the Pix Automático consent lifecycle, retry logic, and reconciliation natively. Without ITP certification, a platform cannot legally initiate these payments through Open Finance rails on a merchant's behalf.
What should enterprises look for when evaluating a payment orchestration platform for Brazil?
The most critical capabilities for Brazil specifically are: ITP certification for Open Finance and Pix Automático, native support for Pix (including Pix Biométrico), parcelamento, boleto, and domestic card brands Elo and Hipercard; no-code routing configurable without engineering dependency; adaptive 3D Secure calibrated for Brazil's fraud patterns; network tokenization with a PCI DSS 4.0-compliant vault; and 99.999% uptime SLA backed by documented history. Global PSP connector counts matter less than depth of integration in the Brazilian market specifically.
How long does it take to integrate a payment orchestration platform?
A typical enterprise integration using a well-documented orchestration platform with pre-built PSP connectors, SDK-based checkout, and no-code routing configuration - is measured in weeks, not months. Adding a new PSP through an existing orchestration connector takes hours. The same integration built point-to-point without orchestration takes weeks. Every subsequent market entry or provider addition continues at that faster pace, which is where the compounding operational advantage becomes significant for enterprises expanding across Latin America.
How does payment orchestration reduce involuntary churn for subscription businesses in Brazil?
Involuntary churn in subscription businesses is caused by three failure modes: expired card credentials, failed retry attempts, and passive abandonment when customers don't notice lapsed access. Orchestration addresses all three - network tokenization keeps card credentials current when cards are reissued, intelligent retry engines re-attempt failed renewals at the optimal time across the optimal PSP, and Pix Automático integration removes card dependency for the segment of Brazilian subscribers who don't hold credit cards.
