LogicaCMG (LSE: LOG), a leading IT services company, has won a contract to provide a Single Euro Payments Area (SEPA) compliant payments platform for a major German bank.
The bank is an existing LogicaCMG All Payments Solution (LAPS) user, and will receive enhancements to its current systems in readiness for the 2008 SEPA deadline when the new payment instruments defined by the European Payments Council (EPC) are mandated to be operational.
In line with the requirements of the EPC LogicaCMG will create a single pan-European system to support credit transfer and direct debits in EUR for the bank's operations across the European Union (EU) and European Economic Area (EAA) countries enabling its customers to benefit from reduced cross-border payment fees. LogicaCMG will provide the bank with a cost-effective mechanism to support these SEPA instruments in order to not only retain its current market share but also to enable it to potentially grow market share by offering SEPA support to smaller players as a white label service.
Scalability of the new platform will be crucial when SEPA comes into force in January 2010. The bank needed to be confident that the system can support over 100 million transactions per day. LogicaCMG addressed this issue by having carried out benchmarks on the system with IBM which demonstrated that LogicaCMG LAPS High Volume exceeds these required volumes, with a sustained rate of 20 million transactions per hour in live operations.
Jerry Norton, director strategy, global financial services at LogicaCMG says: "The 2008 deadline is now less than 15 months away and it is essential that banks start to think about testing their systems in preparation for this first deadline. It will be crucial that banks can rely on their systems to handle the heavy volumes of transactions which will then follow. This contract enhancement shows the confidence of our customers that LAPS High Volume can handle such demanding requirements."