Credit And Debit Card Processing Eco System

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Credit and Debit card processing eco system are undergoing significant change recently due to the advancements in the payment landscape. Disruptive technology in the mobile & ecommerce space has thrown new channels and players in the payment industry, making cards just as another channel to make payment. Traditionally the ‘card issuing’ is managed as a product line on its own from operations and processing point of view. Most big players have dedicated platform, operations / IT teams to support end to end cards processing needs, which includes receivable processing, customer service, back office operation and GL reporting & MIS. Addition of new form factors in the payment space have made cards as ‘one channel’ for fund movement & to make …show more content…

This can lead to shared operation / IT teams between the product lines. If we shift the focus to customer centricity, now we can identify more overlapping area. These similarities throws following questions to the card issuers, especially the banks, • Do they need dedicated system for end – end card processing? • What are the opportunities to leverage a common application stack to support both Banking and Card processing needs? • How to achieve customer centricity, efficiently? • Which system has required agility to meet current technology trends in the market? • What part of the card processing qualify for ‘commoditization’ so that banks can focus on core business and products? • Does the current platform architecture is an enabler or blocker for the outsourcing or commoditization? • What are the additional overheads of having people with varying skills required to support similar business back office processing or servicing needs? Opportunities Business Drivers A careful analysis of processing value chain and considering customer centricity & current technology trends in the market, we can identify very good number of candidates between core banking and card processing which can share

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