The Digital Payments Market
For far too long, the world of payments remained relatively unchanged with a reliance on traditional bricks and mortar channels, an enduring base of legacy clearing services and standards, and a slow moving migration from traditional payment methods like checks and cash to electronic transactions.
The age of digital banking has, however, accelerated the pace of change, so much so, that it is now seen as a revolution in payments processing. This digital payments revolution is underpinned by a number of key drivers:
- Customer channel proliferation expanded Host2Host services, new mobile devices, mobile wallets, e commerce sites, card networks, etc.
- New XML based clearing standards ISO 20022, global, regional, and local initiatives
- Real time clearing faster, immediate payments, more transparency, better performance
- Alternative payments constant appearance of new services and methods e.g. Bitcoin, Paypal, ApplePay, Ripple, etc.
At the same time volumes are doubling every 10 years in developed markets and every 5 years in emerging markets, and customers and regulators are demanding more transparency, less risk, quicker availability of services, and more diversity in engagement options.
The Challenge You Face Today – efficient payment service integration
The current revolution in the payments market is generating a great deal of change within the processing environments of banks and corporates. New digital channel platforms are changing the way banks engage with their retail and corporate customers. Organizations are enabling their internal environments by either evolving the processing capabilities of their existing core banking or ERP systems in the short term, or by taking the more radical, long-term route of implementing new, dedicated payment service hubs to centralize, standardize, and modernize their payment processing capabilities.
Each of these initiatives face the same fundamental challenge of efficiently integrating and maintaining the flow of data to and from these systems in a world of constantly changing message formats, validations, and business requirements.
Organizations require integration tooling that will give them the agility they need to make changes quickly, the reliability required to ensure market compliance, and the efficiency required to reduce time to market, and thus time to revenue, for new payment services.