“Acquirers should build highly flexible acquiring systems to quickly adapt to dynamic changes in the payments industry. Technology investments will help the industry to do away with existing multiple IT systems and develop a strong foundation for innovation in acquiring”, Capgemini, 2012
Changes in the payments industry are affecting all participants in the value chain. The world of merchants, acquirers, switches and card schemes is constantly evolving. New technology like mobile payment and blockchain combined with regulations like PSD2 are playing a pivotal role in enabling this change. Traditional terminal manufacturers find themselves under pressure as (cloud-based) software solutions and especially mobile apps can now provide more value added payment functionality to the end consumer. As a result of this, independent software vendors (ISVs) that provide payment solutions are thriving like never before.
The most important focus area for technology investment for acquirers is still to:
This may take time. Phasing out legacy systems is easier said than done especially in an environment where change in infrastructure always comes with a risk of error resulting in a potentially high impact on business operations or even security.
There is room for innovation at both the system level and the application level. Innovative applications need to have efficient back-office IT infrastructure, which will help acquirers effectively manage their IT staff productivity and technology portfolio. The innovative solution would need to be able to align with growing / changing security requirements in order to tackle fraud and address regulations like PSD2. The system should also have the capability to promptly adapt to strategic changes (in places like the supplier market, for example).
For acquirers, the continuity of legacy platforms may be a concern. At the same time, ISVs are looking for flexible but secure solutions to advance their business.
When choosing Utimaco HSMs you are choosing an HSM-dedicated vendor who has quality hardware at the core of its business. Utimaco offers both payment and general purpose HSMs that complement each other in terms of portfolio offering. Our pure play HSM portfolio allows customers to provision payment and general purpose on the same hardware at the same time to meet their business needs. Choosing Utimaco HSMs as the Root of Trust for their encryption needs allows customers to implement a simple and flexible infrastructure – in the Cloud or on premises. To learn more about our cloud offering, talk to us today!
As a long-term technology strategy, using such a modular approach may result: