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How to Use Composable Apps in Payments

Blog post from Basis Theory

Post Details
Company
Date Published
Author
Basis Theory
Word Count
1,031
Company Posts That Month
5
Language
English
Hacker News Points
-
Post removed?
No
Summary

Composable applications use modular, API- and microservices-based architecture to let organizations combine, replace, and update independent software capabilities without rebuilding entire systems. In payments, this approach can give merchants greater flexibility than relying on a single full-service payment service provider, enabling them to offer more payment methods and currencies, route transactions among multiple processors based on factors such as geography or cost, and adapt quickly to changing market conditions. A composable payments system generally requires control over payment credentials, which creates PCI-DSS compliance challenges if merchants store card data themselves. The proposed model addresses this through a third-party programmable token vault that securely holds cardholder data, a transaction orchestration engine that selects the most suitable processor, and additional fraud, address-validation, and risk-management services. By separating these functions, merchants can seek to improve approval rates, reduce processing costs, maintain continuity, and change payment partners or routing rules as needed.

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