Under the agreement, Wipro will provide banks with a system based on the Temenos T24 core platform, accessed over the Internet and charged based on a per use or monthly fee.

There are over 8000 banks in the EU and for many small and medium sized players replacing expensive core systems is a daunting task.

The partners say that the ASP model is ideal for these, enabling them to bundle the licence, maintenance, services and infrastructure costs into a predictable fee while also getting to market far faster.

The pair are also pitching the model at new entrants emerging in the wake of the financial crisis. In the UK, Temenos already has a pay-per-transaction deal with the recently launched Metro Bank.

Andreas Andreades, CEO, Temenos, says: "Providing T24 on an ASP basis will allow us to offer an exciting product to a new market segment which is otherwise unaddressable. By working with Wipro we combine our leading product with Wipro's significant ASP experience to deliver the right service to the market."

Meanwhile, Temenos has reported first quarter revenues of $103.1 million, up 10% from $93.9 million in Q1 2009. Licence revenue rose a less impressive three per cent, partly due to a "temporary slow-down in decision making as a result of the geopolitical issues in the Middle East and Japan," claims Andreades.

This has contributed to a $10.9 million loss for the quarter, compared to a small $210,000 profit the previous year.

Says Andreades: "With Q1 being the seasonally smallest quarter in the year, small licence volatility can get amplified. We continue to be very confident that we can deliver our full year outlook."

Shares in the company were down five per cent, at CHF30.40, in morning trading.