Leveraging Payment Technologies as a Catalyst for Legacy System Modernisation
By Oliver Werneyer (@oliverwerneyer)
The payments sector has consistently seen a lot of movement and development. We are constantly seeing new payment services and payment technologies emerge across the globe. The variety in markets, and globally, is great for consumers, but an incredible headache for large corporates with large or older IT systems for whom it is not easy to access or integrate these technologies. Specifically, for insurance, banks, utilities, government and pharma.
The traditional approach in the market, to help these slower/older, companies is to aggregate payments types (e.g. as PSPs do or companies like Stripe). These companies still represent the interest of the payments industry and do not solve the IT problems of the large non-e-commerce corporates; hence we see little to no penetration in these other major industries. These “other” industries also have significantly more complex payment flows, data security requirements, security requirements and regulation associated with their business, a traditional approach of direct integration of each payment technology into core IT systems is not feasible and is what generally leads to the failure to partner.
Payment orchestrators, are breathing new life into the opportunity for “forgotten” industries to revitalise and modernise their offerings as well as bring new industries and volume to the payment industries. Orchestrators are breaking down the barriers for large corporates to integrate and leverage more modern payment technologies. This leads to the opportunity to solve fundamental business problems large companies with older IT systems have on the payment technology level, not through IT integrations with IT systems.