Payment Modernisation in the Digital Era
Source: BPC Group Banking Technologies
As the number of payment channels volumes increase, secure payment systems have become an essential tool for business, especially those in the financial services industry. In a recent report, BPC Banking Technologies, one of the world’s leading providers of e-payments solutions, gave their view on the world market and how to future-proof payment systems – particularly with new technology including their SmartVista product suite. Here’s a summary of what they have to say:
The frenetic pace of payments industry activity is gathering momentum daily. As new solutions and technologies begin to gain traction worldwide, the war on cash is being fought on many fronts. However the most pressing issue for financial institutions is whether their existing payment systems can support this rapid rate of evolution.
New methods, new challenges
Many organisations are being held back from adequately servicing their customers’ needs because they are relying on outdated, legacy payment systems that are no longer fit for purpose in the digital age. The need to support new payment methods, handle new payment channels and launch innovative products rapidly is placing even more demands on systems already creaking under the strain.
BPC’s chief marketing officer, Daragh O’Byrne, comments:
“We see the challenges that happen when ATM networks fail because there are too many transactions going through. I think we will see a rising rate of failure of payment systems because many are just too old and can’t cope …”
Whereas many organisations have already bitten the bullet and completely overhauled their platforms and services, there are many others which are choosing to carry out the process piece by piece, component by component.
“It’s a reasonable assumption to make, that the larger the organisation, the more sophisticated its needs are, and the more likely it is that it wants to do payment modernisation rather than payment transformation,” explains O’Byrne.
“Virtually every country is modernising its payment system because payments are evolving so dramatically. Almost every organisation that is involved in payments has challenges dealing with payments transformation because they just don’t have the technology that they need.”
When starting any critical IT replacement project, companies must be certain that the vendor they are choosing is going to be able to deliver the vision. Different markets will require different solutions. In the case of the US, it could be a need to deliver EMV support, whereas in the UK it might be improving the resilience of an ATM network.
Nowhere is the competitive landscape more clearly exemplified than in the burgeoning mPOS space – in a little over three years, mPOS has given birth to a myriad of new entrants and competitors in what was previously a staid area of the payment market. Not only have these new entrants innovated in terms of their products, they are also challenging established merchant-acquiring incumbents at their own game with competitive pricing and fees. Financial institutions are now playing catch-up with their own solutions, leading to even more pressure on their existing payment systems.
With newer technology and architectures built after the birth of the Internet and after mobile phones arrived, it is easier to react and compete when something new emerges.
The SmartVista solution
SmartVista supports a range of business functions, including high performance authorisation switching and routing, full ATM and POS management, comprehensive card management, advanced fraud prevention, loyalty programme management, card personalisation and production, billing and merchant management and integrated Internet and mobile banking.
“Everything in the SmartVista product suite is built on the same architecture. It’s not like we built the switch and then the other components and tried to connect them together, or acquired other companies with additional components and tried to join them together. All of our components all work seamlessly with each other but they’re modular. If you just need a new switch you can take the switch, and if, at a later date you want card management then you switch on card management,” O’Byrne concludes.
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