Payment Routing Optimisation

Most payment fintechs use 2-3 PSPs but lack systematic visibility into which provider performs better for specific transaction types. Authorization rates can vary by 5-15% between PSPs for the same geography or card type, but without unified performance tracking, these gaps remain invisible. A fintech with 87% vs 92% success rates on identical transactions is typically leaving $100K-300K annually on the table in declined revenue. PSPs won't proactively tell you they're underperforming - they show metrics in isolation, not competitive benchmarks.

This solution provides unified performance tracking across all PSPs, identifies which provider performs best for each transaction pattern, and delivers routing recommendations to capture lost revenue.

WHAT DOES IT SOLVE?

Multi-PSP Performance Comparison

• Answers: Which PSP performs best for specific transaction types, and where are we losing revenue to avoidable declines?

• What it contains: Authorization rate comparison across PSPs by geography, card type, transaction size; decline reason breakdown by provider; processing latency benchmarks; performance trends over time

Revenue Recovery Opportunity Analysis

• Answers: How much revenue are we losing to PSP performance gaps, and what's the financial opportunity?

• What it contains: Quantification of revenue lost to avoidable declines; actual vs potential authorization rates by PSP; financial impact modeling of performance optimization; opportunity prioritization by impact

Geographic & Card Network Performance Analysis

• Answers: How do authorization rates vary by market and card network, and which combinations underperform?

• What it contains: Success rate analysis by country and region; card network performance breakdown (Visa, Mastercard, Amex); cross-border vs domestic processing patterns; BIN-level performance for high-volume issuers

PSP Performance Monitoring

• What it adds: Live authorization rate tracking by PSP, automated alerts when PSP performance drops below thresholds, daily/weekly performance reports, trend detection and anomaly identification

• When to choose this: Want continuous performance visibility, need early warning of PSP issues, or tracking improvement from routing changes

PSP Performance SLA Tracking

• What it adds: Definition of performance SLAs with each PSP; automated tracking of SLA compliance; breach documentation and reporting; data package for PSP accountability discussions

• When to choose this: PSP contracts include performance SLAs, frequent performance issues with providers, or preparing for contract renewals and need leverage

Transaction Value & Time Pattern Analysis

• Answers: How does performance vary by transaction value and timing, and where are the patterns?

• What it contains: Performance analysis by transaction value tiers; time-based patterns (hour, day, week, season); peak period degradation identification; volume concentration analysis

CORE MODULES

Descriptive & Diagnostic

Cost-Performance Trade-off Optimization

• Answers: How do we balance authorization rates with processing costs to maximize net revenue?

• What it contains: Combined authorization rate and processing cost analysis; net revenue optimization; optimal PSP selection balancing performance and cost

Retry Logic Optimization

• Answers: When and how should we retry failed transactions to maximize recovery without poor customer experience?

• What it contains: Retry success pattern analysis; optimal timing recommendations; cross-PSP retry strategies; hard vs soft decline treatment logic

A/B Testing for Routing Changes

• Answers: How do we validate routing improvements before full rollout?

• What it contains: Statistical testing framework; controlled experiment design; significance testing methodology; rollout vs rollback decision criteria

Routing Optimization

• Answers: What specific routing rules should we implement to maximize authorization rates and revenue?

• What it contains: PSP selection logic by geography/card type/value tier; cascade and retry routing recommendations; expected revenue capture modeling; implementation specifications for engineering

ADVANCED MODULES

Predictive & Prescriptive

DELIVERABLES

Built in PowerBI, Tableau, or Looker & adhering to client's brand book

Dedicated tab per analysis plus executive summary overview

AI-generated insights and recommended actions per analysis

SQL queries built in client's database system with controlled access

Python scripts for statistical and ML models (if applicable)

Added to client's GitHub repository, or delivered as standalone package

Technical Guide: Data sources, logic, formulas & maintenance procedures

Analysis Handbook: Metric definitions, interpretation, use cases & action framework

Dashboard

Code Base

Documentation

Knowledge Transfer

Live & Recorded walkthrough of dashboard functionality and insights

Q&A session covering methodology, use cases, and recommendations

30-day post-delivery support for questions and adjustments

MAIN REQUIREMENTS

• Transaction and operational data must be accessible in a relational database

• BI Platform Subscription with data base gateway for dashboard automation.

• Relevant APIs & ETL workflows should be functional and consistent.

Data Infrastructure*

• Transaction & Authorization Data - All attempts with PSP routing, authorization outcomes, decline codes, and timestamps

• PSP Configuration & Costs - Active PSPs, routing logic, processing fee structures by PSP and transaction type

• Payment Instrument Data - Card BIN, type/network, issuing bank, and geography

• Revenue & Volume Data - Transaction values, currencies, segments, and revenue attribution

Data Sets

*Data infrastructure set up is out of scope. It can be provided as a separate engagement.