FIs need exceptional payment data processing capabilities to stay competitive in the era of choice. Learn how the Paysemble™ Message Translator can help.
The global digital payments volume is forecasted to expand at a CAGR of 21.1% from 2024 to 2030 valuing $361.30 billion, as per Grand View Research.
Consumer choices have a greater influence on the payment landscape than technology. The fact that central banks worldwide are considering launching CBDCs stands testament to the power of collective user interest to drive changes in the payments industry. Though CBDCs may still be a distant goal, there is no shortage of diversity in payment modes. Banks and payment enablers must keep pace with emerging methods of value exchange to stay competitive in the evolving payment landscape. This involves equipping yourself with future-ready payment data processing tools and cutting-edge integrated transaction management solutions.
Challenges in Implementing Integrated Payment Processing Systems
Over 50% of small and mid-sized businesses plan to switch to integrated B2B payment solutions to reduce friction. Merchants and end-users increasingly demand seamless, intermediary-free, real-time, and affordable transaction facilities. Technology has created so many possibilities that merchants and payment enablers need to adapt rapidly to optimize the choices customers make. This creates several payment data processing challenges for FIs:
Delivering Unified Experiences
Payments data is highly fragmented. This makes extracting comprehensive consumer insights, developing appropriate risk profiles, and tracking industry trends difficult for FIs. A cloud-based solution offers a scalable and cost-effective way to provide unified customer experiences. A payments integration solution with capabilities to establish data quality, create a consolidated centralized single source of truth, and manage heterogeneous formats can help.
Facilitating Routing and Reconciliation
Payment service providers (PSPs) struggle to address the needs of diverse acquiring partners and merchants. This is because regional compliance and regulatory requirements, heterogeneous message formats, and complex routing processes slow legacy systems down. Leveraging a cutting-edge payments integration solution with pre-built frameworks can help banks and payment enablers to swiftly develop API-based easy-to-integrate features to enter newer markets and adapt to emerging payment trends. Automated workflows facilitate reconciliation while reducing manual error and improving reporting accuracy.
Paysemble™: A Flexible Framework to Accelerate Payment Integrations
The current payments integration landscape has seven classes of components:
- Transacting entities
- Transaction channels
- Database systems
- Social media and other communication channels
- Cloud providers
- Primary payment systems
- Secondary payment systems.
Orchestrating payments through the complex web of heterogeneous elements of each class is a huge challenge as well as a business imperative for banks and payment enablers. Processing payment data is the most critical activity for a transaction enabler.
The Paysemble™ Message Translator supports diverse protocols and message formats, including SWIFT, ISO 20022, ISO8583, FedNow, and RTP, across communication channels to facilitate payment messaging. It is a flexible, extensible, and customizable tool with rule-based routing capabilities to meet the payment data exchange requirements of banks, FinTechs, credit unions, payment enablers, and other participants in the payments ecosystem.
Learn More: How Paysemble™ Message Translator Enhances Payment Data Management
