Integration of a Financial Institution with PagoNxt Payments Hub for a full payment processing service
As the financial landscape rapidly evolves, so too do regulatory requirements and consumer expectations. Today, real-time, hassle-free, and transparent payments have become the standard. Traditional systems are struggling to keep pace, particularly as electronic payment volumes surge by over 20% annually and account-to-account instant payments gain traction globally.
Financial institutions aiming to harness advanced payment processing capabilities must ensure they meet the demands of modern payment systems while enhancing operational efficiency. They are turning to Payments Hub, which offers a unique blend of cutting-edge technology, extensive industry expertise, and a strong focus on security and resilience.
The following outlines a straightforward use case illustrating the needs of a financial institution seeking to enhance its end-to-end payment processing capabilities in collaboration with PagoNxt Payments Hub.
Who is Involved?
Financial Institution (FI): A bank or financial service provider aiming to improve its payment processing capabilities.
PagoNxt Payments Hub: A cloud-native payment message processor that facilitates payment initiation, orchestration, and settlement.
Prerequisites / Assumptions
The financial institution has existing payment initiation systems (channels) that require integration with a robust payment processing solution.
The FI seeks to enhance efficiency, security, and scalability in its payment processing operations.
Goals
Enable seamless payment processing for various transaction types.
Ensure compliance with ISO standards for payment initiation.
Enhance customer experience through faster transaction processing and real-time updates.
High-Level Flow
Integration Setup:
The financial institution collaborates with PagoNxt to establish a connection between its payment initiation systems and the PagoNxt Payments Hub using an ISO-compliant interface.
Technical configurations are implemented to meet the institution's specific requirements.
Payment Initiation:
Customers initiate payment transactions via the financial institution's channels (e.g., mobile app, online banking).
Payment initiation messages are sent to the PagoNxt Payments Hub.
Message Orchestration:
Upon receiving the payment messages, the PagoNxt Payments Hub orchestrates execution based on message type, status, and context.
The hub processes messages, ensuring they are routed correctly to the appropriate clearing houses or gateways according to defined scheme rules.
Clearing and Settlement:
The PagoNxt Payments Hub connects with clearing houses to facilitate transaction settlements.
Responses from clearing houses are processed, and the financial institution's channels are updated with the transaction status.
Real-time Updates:
The financial institution receives real-time updates on transaction statuses, enabling immediate customer notifications and improved service delivery.
Performance Monitoring:
The financial institution monitors transaction volumes and performance metrics through the PagoNxt Payments Hub, ensuring high availability and resilience.
Results
The financial institution successfully processes payments with enhanced efficiency and security.
Customers enjoy improved transaction speeds and greater transparency regarding their payment statuses.
In Conclusion
PagoNxt Payments’ cloud-native technology provides a flexible SaaS model to customers aiming to modernise their current infrastructures. Relying on industry standards — e.g., ISO20022 at its core - the platform provides straightforward, future-proof integration interfaces and toolkits that simplify the connection to various payment schemes and markets, resulting in easier onboarding processes and a wider customer reach.
PagoNxt Payments Hub delivers the following benefits:
Universal payments processor: Supporting multiple initiation methods (individual, bulk), multiple payment types (instant payments, credit transfers, direct debits, or international), and covering full orchestration of payment flows, PagoNxt Payments covers a broad range of customer needs and use cases right off the shelf.
Always on, always compliant: Enforcing security through bank-grade measures and advanced data protection techniques, the platform includes anti-money laundering components, and complies with global regulatory standards as they are released.
Modular approach that adds value: Along with the core orchestration engine in the cloud, the platform offers integration and management tools, web interfaces for payments operations, data analytics interfaces, and notification mechanisms. Furthermore, the standard set of capabilities can be extended through optional modules.
PagoNxt Payment Hub offers a proven end-to-end processing solution implemented across FIs in UK, Europe and the Americas addressing all clearing requirements. Our solution is a cloud-native service platform featuring end-to-end payment orchestration, universal multi-rail support, native ISO20022 compliant, and uses an open, API-driven philosophy.
Our payments SMEs have decades of industry experience and frequently contribute to European-wide papers shaping current regulations.