Strategies for payment systems planning

The need for a structured approach to payment systems planning is driven by (i) the complexity of the Payments Integration Space, which defines the scale of the payment systems planning problem, and (ii) the Payments Integration Paradox, this being the idea that, while the objectives of the planning activity is simplicity in the IT estate, the phases in achieving the simplification are themselves highly complex. In this context, this paper introduces strategies for payment systems planning. Three macro strategies are described, which highlight long-term approaches to achieving a chosen IT target architecture. Complementary micro strategies are also introduced, which highlight valuable localised approaches within a specific phase of the overall macro strategy execution. Several target architectures that achieve a simplified payment systems landscape have been identified previously. This paper explores the extent to which these architectures are fulfilled in the execution of the strategies, illustrated using a comprehensive functional model of payments processing. Given the dynamic nature of the payments business environment, any systems improvement initiative must be able to accommodate impacts due to ‘shocks’ within the environment. An overview of the variety of business events that can occur is provided, and a qualitative assessment of the robustness to each event of the candidate target architectures and associated strategies is made. The paper concludes by presenting case studies highlighting practical experiences in executing the different strategies within two major payment systems modernisation initiatives.