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Just a remark to "new players enter the payments business with newer architectures and systems with lower costs" ...
Newer isn't always better, and lower cost may be just a perception resulting from only looking at the price tags of cheap hardware boxes. Those newer architectures usually lead to more complexity and higher system management cost, while at the same time
affecting the reliability of the system. And last not least - those highly praised new architectures do come with a high number of potential vulnerabilities, and not all of them get fixed ...
While those new architectures may be a good fit in a number of cases, payments systems are a very particular breed - and well worth thinking twice about risk and total cost of ownership for running business-critical applications.
In reply to Gerhard, I suspect the reference to "newer architectures and systems with lower costs" was more a reference to next generation software rather than hardware, although it is true that one no longer needs the expensive top end hardware anymore
to run reliable payment systems.
Segments such as international retail payments, B2B collections and remittances have grown big in recent years – but traditional payments systems haven't adapted to service them. Re-engineering systems and processes with only a cost-reduction goal risks
missing out on changing market opportunity. And big system change takes time, can absorb all available change resource, and often moves slower than innovation.
Many of the ‘new entrants’ are not new entrants at all, they are long-standing payments service providers, and have proven, optimised business models. The 'new' part is their regulation; the PSD provides a governance regime that gives protection to their
customers, and hence makes their services more readily adoptable. Some of these models are quite different from the way traditional financial institutions have designed their systems. They give traditional financial institutions new options to source their
payments services, and hence to increase share, and associated fee income, with barely any investment and with short time to value.
So we may see payments transformation developing on a twin-track – increased adoption of alternative models to grow share and revenue, the income from which can then support the necessary longer-running legacy systems transformations.