Quora Query on Payment Switching Systems: The following question was posted on Quora: "With ACI Base 24 Sunset limitations and the FIS still maintaining legacy platforms, will the banking industry change the existing ATM and POS switching systems to modern solutions? What options do they have?" At EFTLab, we are glad to see this kind of question because it demonstrates that people are looking for the solutions we offer. Here is how we would reply:
Clearly, change is coming to the payments industry. Today's businesses are growing frustrated with the rigidity of the large payments players, who run payments to suit their legacy switching platforms and charge dearly for any customization or change request.
The most commonly used switching platforms, Base24 and ISO8583, lack the flexibility to meet the increasing number of new security standards and the requirements of new payment products. The workarounds needed to try to address this deficiency only serve to increase the complexity of these bitmap-based formats. The size of the bite taken out of merchant profit margins by large payment networks is another sore point, leading merchants to experiment with alternate payment methods and options.
A new generation of payment switching solutions is needed to enable businesses to react quickly to customer demands, new security requirements and payment trends. This new generation of payment switching solutions will have a foundation built on the latest flexible technologies such as JSON, ISO20022, and Docker, and will be highly scalable and expandable—a bit like LEGO – allowing switch owners the freedom to quickly roll out their own custom solutions in real-time and with minimal effort.
These payment switching solutions will also natively interface with each other in a P2P way -- forming a number of closed payment systems, where payment processing fees will become much less important or may even become another source of income, providing additional value to the switch owner.
BP-Switch is just such a new generation switching solution and it is available NOW. For more information on BP-Switch, see our website. >>