Payment providers are continuing to operate with clunky legacy systems that could potentially curb profitability. A more sustainable solution is in order.
An article from Finextra highlights a report From Capgemini, which found that the use of outdated systems was quelling digital transformation. Over 80% of payment executives said that substantial modernization of tools was necessary. Some of the newest technologies that have made their way into the payment space include RPA, cloud, APIs, AI, DLT, as well as hubs. These tools offer a wealth of options for the consumer. However, the implementation of these new technologies could pose a significant cost for providers.
Regulatory compliance is also a major hurdle to overcome as there are substantial costs tied to this as well, and all technology must meet the current regulatory standards.
It’s essential that providers manage their investments accordingly to keep up to pace with the newest payment technologies. It’s also key to funnel funds into efforts that will deliver the most value.
There are many aspects of the payments system that must be looked at to ensure that the individual parts work together, making a more cohesive and sustainable model. We’ve talked about the necessity of enhancing payments, especially within the B2B space here.
