In recent years, platform technology has evolved as a force that is truly capable of bringing about transformation in the contemporary business scene. The term – platform technology – refers to a digital infrastructure that makes it easier for many parties to interact with one another and conduct transactions with one another. This infrastructure frequently connects consumers and producers in novel ways. 

As we’ve covered in our whitepaper on platform technology, it comes with a host of benefits for banks and payment processors. One that requires to be underscored is scalability.  

There is a struggle going on in the payments landscape. On a daily basis, new finance firms arise, each one equipped with slick user interfaces and cutting-edge functionality. Due to the load of legacy infrastructure, traditional banks and payment processors are having difficulty keeping up with the times.   

In terms of scalability, this is where platform technology comes into play, providing a powerful weapon that can liberate banks from limits and catapult them to new heights. 

The nightmare of monolithic maze

Traditional payment methods are often built on monolithic constructions, reminiscent of complex fortifications. The addition of features or the incorporation of new payment methods is akin to the construction of a totally new wing; it is a procedure that is both laborious and prolonged.  

This rigidity provides a chokehold on expansion, which hinders payment processors in several different ways, including the following: 

– A wall against market expansion: Around the world, regulations and customer preferences are drastically different from one another. A monolithic system has a difficult time adapting to these variations, which hinders a bank’s capacity to access lucrative international markets 

– Standstill in innovation: Beginning with real-time payments and progressing all the way up to solutions powered by blockchain, the payments industry is constantly releasing innovative technology. A monolithic system is incapable of integrating these advancements because it lacks the adaptability to do so, which leaves it susceptible to disruption 

– Panic at the peak season: Spending sprees during the holiday season or unanticipated events can cause traditional systems to become overwhelmed, which can result in crashes and lost income. There is a single point of failure with monolithic constructions since they do not have the elasticity to scale automatically 

Platform power: A marvel of modular development 

Platform technology provides a transformative method of implementation. Consider a huge city in which every building performs a distinct purpose while simultaneously integrating with the other structures in a seamless manner. This is the core of what a payment platform is all about.   

 It is possible to accomplish the following by decomposing core functionalities into independent components, similar to the modules that make up a city:  

– Rapid development, the process of adding features or integrating new payment methods is like building a new bakery in the city. It is a process that is both swift and targeted, and it does not disturb the services that are already in place  

– Unmatched flexibility: New payment methods or services may be easily plugged into the platform, which enables banks to accelerate their ability to adapt to developing trends and the demands of their customers  

– Minimal investments: There is no longer a requirement for significant initial investments in hardware when using cloud-based systems, which results in cost-effective growth. As a result, businesses only pay for the resources that they actually employ, scalability is an expensive task 

Cloud computing: A powerful scaling engine

There are numerous platforms that make use of the power of cloud technology, which introduces an additional layer of advantage: 

– On-demand scalability: With cloud infrastructure, it is possible to automatically scale resources up or down according to the requirements of the situation. During times of high demand, the platform is able to extend its capacity without any disruptions, ensuring that operations run smoothly. On the other hand, during times of lower activity, resources can be reduced, which brings about cost optimization

– Always available: Cloud service providers offer comprehensive disaster recovery solutions, which help to reduce downtime and ensure the continuity of business operations. It is possible for the platform to replicate and restore services in another location, ensuring that payments continue to flow even in the event that a physical server fails 

– Extended security: It is common for cloud platforms to come equipped with a full set of security measures, which may include encryption, intrusion detection, and access controls. It is because of this that payment businesses are able to comply with severe industry requirements and protect sensitive customer data  

– Robust reliability: Cloud platforms are capable of handling vast transaction volumes without compromising performance because of their built-in resiliency and failover mechanisms that safeguard against failures. So, if one component goes down, the platform can seamlessly route transactions to alternative channels and prevent disruptions  
 
Because the future is scalable, banks should take use of the platform advantage. The environment of payments requires a high level of agility, flexibility, and the capacity to respond to the constantly shifting dynamics of the market.   

Technology that is based on platforms provides payment processors with the capabilities they require to not only survive but also thrive. They have the potential to achieve explosive growth, overcome obstacles related to scalability, and establish themselves as the preeminent powers in the payments industry of the future. 

Which brings us to FSS BLAZE™ – a state-of-the-art, new-age payments technology platform. FSS BLAZE™ has a multi-layered architecture that decouples core services for modular development, easy upgrades and integrations. 

Find out more about FSS BLAZE™ here. 

To understand the role of technology platforms like BLAZE™ in the payments industry, download our whitepaper – Reimagining Payments – The Platform Way.