Selecting the Ideal Payment Solution: Strategic Criteria for European Banks | Samlink

Selecting the Ideal Payment Solution: Strategic Criteria for European Banks

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The selection of a Payment Solution is no longer an IT decision; it is a long-term strategic investment that determines a bank’s capacity for compliance, innovation, and profitability. 

In the current environment, driven by the Instant Payment Regulation (IPR), any modern Payment Solution must meet the mandatory 24/7 processing requirements of RTP payments while providing the agility to compete with FinTechs. Choosing the wrong platform can lead to immense technical debt and crippling compliance costs. 

How to Choose the Right Payment Solution:

For strategic decision-makers, the choice of a Payment Solution must be guided by three critical criteria: 

  1. Compliance as the Non-Negotiable Baseline

Any viable Payment Solution must guarantee full and timely IPR Compliance. 

10-Second Guarantee: The solution must inherently support Real Time Payments processing and immediate settlement, 24/7/365. 

Cost Parity Functionality: The system must be efficient enough to manage the high volume of instant payments without incurring higher operating costs than standard transfers, as mandated by the IPR’s equality of charges rule. 

Fraud Mitigation: The solution must seamlessly integrate services like Verification of Payee (VoP) across all credit transfers to meet regulatory standards. 

  1. API-First and Modular Architecture

Modernization requires flexibility. A rigid, monolithic Payment Solution will inevitably slow down future innovation. The chosen platform must feature: 

Modular Design: Leveraging a microservices approach allows the bank to update or integrate specific functionalities (e.g., a new sanctions screening tool) without destabilizing the entire system. 

API Connectivity: The platform must expose core functions via robust APIs to integrate easily with channels like mobile payments apps and third-party commercial platforms. 

Payment Orchestration Capability: The system should either include or allow integration with a payment orchestration layer. This is essential for routing transactions optimally across multiple internal systems and external payments gateway providers based on cost, speed, and success rates. 

  1. Choosing the Right Implementation Model

Banks face a fundamental choice when sourcing their Payment Solution: 

  • Buy (Vendor Platforms): Purchasing a large, off-the-shelf system from a major vendor. This offers proven stability but can lack customization and speed up technical debt if the platform is not truly modular. 
  • Consume (BaaS/FinTech): Using specialized services (e.g., a payments gateway) from a FinTech partner. This offers agility but requires strong internal integration expertise. 
  • Progressive Modernization (Samlink’s Approach): This blends stability with agility. It involves keeping the most resilient parts of the legacy core while strategically layering new, modern, cloud-native components for functions like payments and customer engagement. This strategy minimizes risk while accelerating time-to-market. 

Is your bank’s legacy architecture restricting your ability to select and deploy the right Payment Solution? Samlink specializes in guiding financial institutions through the strategic choice and successful RTP Implementation needed to modernize. 

To understand how your payment solution choice fits into the broader IPR roadmap, read our complete guide: The Complete Guide to IPR Compliance and Real-Time Payment Modernization for European Banks.