Payments & Transactions

Confidence in payments

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For banking customers, confidence comes from knowing that their payment was completed instantly and securely.  This trust is a key capability banks must consistently demonstrate as they digitally reinvent their services to compete in the global, immediate payments processing marketplace. Instant payments and other new services are being driven by regulatory mandates along with digital savvy consumers demanding improved experiences on one end and high-technology start-ups on the other end.

The shift to instantaneous payments based on customer needs and the push for open banking (via regional initiatives such as PSD2) has created several significant operating challenges for banks, including:

  • The need to deliver sub-second response time for clearing and settlements
  • The ability to scale vertically and horizontally to match unpredictable work load peaks and anticipated transaction growth without interrupting services
  • Bulletproof security and continuous availability
  • Delivery of deeper insights to improve operations and influence new services.

The July IBM Z announcement comes at a great time for banks who are striving to improve their payments operations. Of course, the IBM Z platform continues to provide the industry’s highest levels of availability, resilience & security for the workloads deployed on them. But now with the introduction of Pervasive Encryption on the z14, all workloads, including payments, can derive even higher levels of security through the encryption of data, be that data in flight or at rest. And, there are no application changes required to exploit this new advance in encryption.

Furthermore, IBM plans to introduce a new commercial model for the IBM Financial Transaction Manager of z/OS deployments that enables select IBM Z software and hardware to be charged by the payments processed, rather than the capacity used. This new flexible pricing will deliver the best of all worlds. It will allow clients to retain highly confidential data and mission-critical applications on-site, with the convenience and consistency of a per-payment utility model. Typically, this model is only deployed in off-premise operations. Flexible pricing will help clients further maximize the value on running their application on IBM Z, the industry’s leading platform technology.

This new commercial model will significantly lower client risk in several areas:

  • Cost predictability and consistency is introduced
  • Cost can be linked directly to business transactions, and inherently match business adoption & growth rates
  • Elimination of concerns over paying for peaks and the inherent waste that is introduced with unused capacity around the peaks. Pay only for the production payments processed, not peak usage
  • Security and unrivalled availability for payments operations, with full encryption
  • Reduced integration complexity, coupled with increased performance, scalability and reliability in the payments processing

For more information on this flexible pricing option, visit  https://ibm.co/2uzk9jJ

Read this blog by Ian Hurst about the IBM announcement of the new IBM z14 Mainframe, “From selective encryption to pervasive encryption: how IBM z will protect data with just one click“.

Director, WW Payments Solutions

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