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Acquiring and Switching Vendor Comparison Report Published on October 2012
Report Summary The card-based payment processing industry has seen many changes since the first ATM activated by a magnetic stripe card was installed in 1969. Until recently, and assisted by the creation of an industry of software product vendors, these changes have been evolutionary and sustainable in current organisations. However, over the last few years, six factors have called into question how long this sustainability will last: ' This marketplace is indisputably in a classically defined 'Industry Disruptive Change Stage': the traditional market share custodian leaders around the world are severely threatened by hungry innovation companies who want to, and will, break through to become the next generation leaders focused on consumer driven solutions ' In the aftermath of the financial crisis, payment systems have moved from verticals to core infrastructure, with governments taking greater control due to the critical nature of the payments systems to the stability of any country. This has also led to issues around 'globalisation' vs. 'protectionism' creating conflicts by preventing entry into certain markets ' Increased regulatory pressure, such as the Payment Services Directive (PSD) in the European Union and the Payment Card Industry Data Security Standard (PCI DSS) ' Increased financial pressure, resulting in a trend of mass outsourcing and cost reduction programmes, both perhaps beyond bounds to deliver, and so destined to cause service issues and backlash reform in future years ' A less crowded marketplace of card-based payment processing systems vendors due to mergers and acquisitions ' Leadership moves over recent years by the dominant vendor of such systems, ACI Worldwide, that has put its BASE24 system into mature status with no longer enhancing its product in favour of the next generation product, and an acquisition trail of near term competitors and emerging players, i.e. S1 and Distra. This has left organisations currently running card-based payment processing systems with a limited number of options: ' Continue to run either their current in-house system or a replacement, either from the same vendor or a competitor ' Outsource the processing to a third party ' Exit the card-based payments processing business Against this background and faced with these choices, a number of banks and processors approached PayX for help. They felt that, whilst their own staff knew the local market, the processing product that they are currently using and their own requirements and constraints in considerable depth, they did not have the breadth of knowledge of competitive products and the international marketplace to make a fully informed decision on which option to select. By augmenting the knowledge and experience of their own staff with an independent assessment of the state of the market, they believed that they would be better placed to determine what their choice should be. The result is this report.
Table of Content Executive Summary Introduction Scope and Purpose Vendors Featured Vendor Categories
Acquiring and Switching Vendor Comparison Report (From Issuu)
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