Revolutionizing Payments: A Deep Dive into Payments Modernization – Part 2
The goal of payment modernization is to bring holistic improvements in the overall functioning of the payment ecosystem. Effective transformation should start with a thorough functional and technical assessment of the payment system, including its integration with upstream and downstream components. These insights are crucial in identifying a modernization strategy that meets business priorities while aligning with the organization’s goals.
One of the most common challenges in modernization stems from the limitations of legacy platforms, characterized by their inherent monolithic architecture, outdated technology stacks, and poorly integrated components that lack consistency and cohesiveness. While these are valid issues, replacing the core system is not always feasible, especially when significant investments have been made in the existing infrastructure.
Let’s consider a use case that is driving digital payments: the demand for adopting data-rich message formats like ISO 20022 across domestic and cross-border payments to facilitate efficient straight-through processing and enable extended data capabilities. The constraint of existing payment processing systems lies in their inability to handle such data-rich transaction formats, as they were initially developed to process proprietary messages. Rather than replacing core systems, the optimum solution is to have a layer to handle the data rich (ISO 20022) message formats. Leveraging an open API-based interoperable solution, this layer will aid in capturing and consolidating the data. By utilizing the consolidated data, digitalization of payment use cases can be implemented while safeguarding existing investments.
Another sought-after use case is to provide a consistent financial experience across payment rails and channels that are secure, high-performing, and scalable. The solution can be delivered through a unified connector in the form of standardized APIs. Some organizations may opt for staggered modernization, which entails gradually modernizing or replacing existing components, requiring the co-existence of old and new components until the new solution is fully stable. Depending on the strategy, organizations need to adopt a suitable model to accelerate modernization and drive continuous improvement throughout the transformation process.
RS DigitalEdge™ developed by RS Software is an open-source payment software appliance with a composable solution, essential for propelling the payment ecosystem into the digital age. It seamlessly integrates with diverse payment channels using a single API connector, enables legacy systems to adapt to the real-time ecosystem, and its innovative overlay layer unleashes the power of open payment APIs and data analytics services. Powered by a robust orchestration engine, it guarantees secure, high-performing, and scalable transaction processing. Moreover, its low-code configurability ensures swift implementation, setting new standards in efficiency and innovation. RS DigitalEdgeTM offers a critical building block for the digital transformation journey of the money movement ecosystem.
NORTH
AMERICA
1900 McCarthy Boulevard Suite #101 Milpitas, CA 95035
181 University Ave suite 2100, Toronto, Ontario M5H3M7
ASIA
Development Center
Adventz Infinity, 11th Floor, BN Block, Sector – V, Kolkata 700091, India.
ASIA
Corporate Office
A-2, FMC Fortuna 234/3A, A.J.C. Bose Road Kolkata 700020, India
EUROPE
Applebys Pl. 7, 1411 København
Leave a Reply