How do you compare payment system architectures and platforms?

1 Payment system architecture

Payment system architecture refers to the design and structure of the components and interactions involved in processing payments. It can be classified into three main types: monolithic, modular, and microservices. Monolithic architecture is a single, integrated system that handles all the payment functions, such as authorization, settlement, fraud detection, reporting, etc. Modular architecture is a collection of separate systems that communicate through standardized interfaces and protocols, allowing for more flexibility and customization. Microservices architecture is a distributed system that consists of small, independent services that perform specific payment tasks, such as tokenization, risk scoring, invoicing, etc. Each type of architecture has its own advantages and disadvantages, depending on factors such as scalability, reliability, performance, security, and maintenance.

2 Payment system platform

Payment system platform refers to the software and hardware environment that hosts and supports the payment system architecture. It can be categorized into two main types: on-premise and cloud-based. On-premise platform is a self-hosted solution that requires the business to own and manage the servers, networks, databases, and software licenses for the payment system. Cloud-based platform is a hosted solution that relies on a third-party provider to deliver and maintain the payment system as a service, usually through an application programming interface (API). Each type of platform has its own benefits and drawbacks, depending on factors such as cost, control, compliance, and innovation.

3 Payment system features

Payment system features refer to the capabilities and functionalities that the payment system offers to the business and its customers. They can be divided into two main categories: core and value-added. Core features are the essential and basic elements that enable the payment system to function, such as payment methods, currencies, regions, transaction types, etc. Value-added features are the optional and advanced elements that enhance the payment system performance, such as payment analytics, recurring billing, subscription management, etc. Each feature has its own importance and relevance, depending on the business model, goals, and customer expectations.

4 Payment system integration

Payment system integration refers to the process and method of connecting the payment system to the business website or application. It can be done in two main ways: direct and indirect. Direct integration is a method that involves embedding the payment system code directly into the website or application code, allowing for more customization and control. Indirect integration is a method that involves using a pre-built payment system plugin or widget that can be easily installed and configured on the website or application, allowing for more convenience and simplicity. Each way has its own pros and cons, depending on the technical skills, resources, and time available.

5 Payment system security

Payment system security refers to the measures and standards that the payment system follows to protect the data and transactions from unauthorized access, misuse, or fraud. It can be measured by two main indicators: encryption and compliance. Encryption is a technique that converts the data into a code that can only be decrypted by authorized parties, preventing data breaches and theft. Compliance is a set of rules and regulations that the payment system adheres to, such as the Payment Card Industry Data Security Standard (PCI DSS), the General Data Protection Regulation (GDPR), etc., ensuring data privacy and security. Each indicator has its own level and scope, depending on the payment system architecture, platform, and features.

6 Payment system evaluation

Payment system evaluation is the act and result of comparing and contrasting different payment system architectures and platforms, based on the criteria and indicators mentioned above. It can be done in two main steps: assessment and selection. Assessment is the step that involves gathering and analyzing the information and data about the payment system options, such as features, costs, reviews, etc. Selection is the step that involves making and implementing the decision about the best payment system option, based on the assessment results and the business needs and preferences. Each step has its own challenges and best practices, depending on the availability and quality of the information and data, and the clarity and alignment of the business needs and preferences.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?