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Don’t rip and replace or how a SaaS solution allows flexibility when outsourcing

With a modular approach, we can add a card SaaS layer to complement and enhance your existing solution

Toms Jansons / December 07, 2022

Looking at the current card and payment processing market, this kind of service provides many opportunities for e-commerce and card issuing – specifically commercial card offerings.

With the COVID-19 pandemic, e-commerce exploded in virtually all European markets in the peak of the first wave. The trend is predicted to continue as we are becoming an increasingly remote society.

The phenomenon has its downsides, but at the same time these societal changes considerably boost payment processing and card transaction volumes, even in the otherwise slowed-down economy.

Large number of brick-and-mortar stores are being forced out of business, with e-commerce and remote delivery being the only option moving forward. We can conclude that e-commerce is becoming more important than ever before; remote commerce is fast becoming a key revenue driver for many retail enterprises.

Banks need new solutions to get into the acquiring business again

Despite these recent tendencies, many EU banks have struggled to keep healthy margins and have outsourced or given away altogether their acquiring business. However, with the growth of e-commerce transaction volumes during the pandemic and new emerging payment methods, banks may find the e-commerce business lucrative again.

We understand that any bank wishes to maintain relationships with clients. New payment methods deliver opportunities to re-capture customer data especially via e-commerce outlets.

While this is an opportunity for banks to gain back their presence in the acquiring market, the initial investments, time, and effort required to implement an on-prem solution are a major limiting factor. While handing over your customer network to a processing centre is not the same as running your own solution.

SaaS is a win-win for banks struggling with margins in the acquiring business

In this situation, SaaS is uniquely positioned as you gain control over the solution – just as if it was your own. Yet you are relieved from the need to build hosting infrastructure, software deployment, servicing teams, and compliancy certification.

The abovementioned also applies to card issuing. The market indicates that cards are here to stay and the tendencies show that issuers are now looking for market segments to drive revenue and profitability.

To support new payment methods and follow market demand, there is no need to rip and replace the on-prem, in-house payment systems. You can add the benefits of SaaS and Cloud to your existing system as feasible modular replacement on a SaaS platform.

Read more about Card and financial product solutions here.

For more on public cloud vs private cloud solutions, please read blog series on Public cloud.  

 

Toms Jansons
Lead Payments Offering Manager

Toms Jansons currently holds the position of lead strategic product manager and has over 15 years experience in card and payment product development.

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