The imperative for modern payment infrastructure
Payment organizations are increasingly at the tipping point to modernize their payment infrastructure to better compete in a rapidly changing world. The emergence of new entrants, equipped with the latest artificial intelligence and cloud technology, can deliver payment services faster and at a lower cost per transaction, which has increased the urgency to modernize for many organizations. Consumers have an expectation that digital payments can be processed using any device, network, and channel. Competition and regulators have reduced processing fees, and corporate treasurers are increasingly expecting better experiences from faster payments and richer data. Thus managing liquidity becomes easier and more transparent.
Other factors, in addition to demands for better customer experiences or cost reduction, are fueling the need to modernize. Payment volumes have accelerated over the last several years, driven by an increasingly digital population and overall expansion of the global economy. According to Boston Consulting Group and SWIFT, global payment revenue is expected to surpass US$2.4 trillion by 2028. This revenue growth has increased competition in the market and has revitalized the conversation to prioritize and accelerate payment modernization for many organizations.
Innovate, adapt, and scale on your own terms with confidence
Real-time payments with events and data streaming
Markets across the globe have followed the path of Japan and Brazil, introducing new payment schemes to accelerate the settlement of funds. While there is not a singular term to describe these new schemes globally, they all relate to the same concept of clearing and settling payments quickly. This focus is leading the way for immediate payment processing to become the new normal in most markets.
Most payment organizations have had the technical capability to exchange data with messaging infrastructure for quite some time. However, recent advancements in messaging presented an opportunity for a fresh look at these capabilities. Tapping into data streaming means that organizations can process messages at a scale that was available only to mainframe and bespoke messaging systems in the past. Payments is a high volume, low margin business. In order to be on the right side of the volume-value trade-off, financial institutions need messaging infrastructure that can automatically adjust based on transactional volumes. It also means that the infrastructure can efficiently process hundreds of thousands of messages per second to support an always-on, real-time payments service.
However, it is not just about improving the performance and resilience of exchanging data online, it is also about becoming more efficient with exchanging data offline. While the world continues to move toward real time, the need for file-based transfers still remains. The union between cloud, storage, and messaging means that complicated file handling and integration can be replaced by an event-driven approach for file transfers. In return, payment organizations can apply a uniform approach no matter what channel submits the payment instruction.