by Kristin Moyer | November 19, 2008 | Comments Off on At Last – Delivery Model Flexibility in Card Processing
Banks in many regions of the world are preparing to make substantial changes to their payments systems. There are many reasons for this, including everything from regulatory change to volume growth to cost containment to improving technology (and more). As an overarching theme, banks are preparing to modernize their payments systems.
The interesting thing is this: banks as a whole are not going one way or the other with their card processing delivery models. Most banks use a mix of in-house and outsourced card processing delivery models, and will continue to do so as they modernize their payments systems. What banks need is the ability to move quickly and flexibly between delivery models.
Previously, the industry has not been able to support delivery model flexibility. New technology, application platform-as-a-service (APaaS), is changing this. APaaS is an in-cloud platform for the deployment of new cloud application software. Payment-specific APaaS will enable banks to leverage a template library, yet customize these templates to their specific business needs and areas of specialization – without the burden of system management. Banks will be able decide when they want to do customization themselves, vs. when they want the vendor to handle this. Some vendor models will further let banks choose whether they want to deploy the solution onsite or at the vendor site.
Bottom line: APaaS will enable banks to engage in the card processing business in a way they haven’t been able to before.
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