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Mauricio Mier, VP Sales




The Needs Today

Merchants must modify their customer service approach and refocus their operation to address a multichannel oriented business. They need to accept payments through traditional in store POS devices plus state-of-the-art mPOS, laptops and cell phones connected to internet. They expect both, the agility needed today to grow the business as new technologies emerge, and the availability of an Active/Active implementation that minimizes operational risk.

Transaction Processors expect their switching software to process and block fraudulent transactions generated through “physical cards” at traditional POS and ATM devices or through an increasing number of transactions generated using “virtual cards” stored in digital wallets. They expect to comply with government regulations though increased reliability while exploiting Active/Active implementation replicating data in both directions in real time.

Banks expect to extend their traditional approach approving/declining transactions in favor of an expanded role to join the Acquiring Business enrolling merchants and setting up connections with Payments Aggregators and Facilitators in an Active/Active implementation.

For short, a payments ecosystem where transactions can be processed using technology that is always available.

The Learnings

OmniPayments has been in the transaction processing business for 25+ years. During this period, we have witnessed the evolution of the payments industry and learned a lot from our interaction with customers.

We understand that consumers expect to be able to buy anytime, anywhere, and anyway they choose utilizing whichever channel and payments method suits them best at that moment in time.

Not so long ago (in the late 90’s), financial transactions were mostly generated using physical cards swept at traditional POS and ATM devices. Authentication methods were limited to PIN insertion and interaction with HSMs (High Security Modules). Back then, two factor authentication was not used in the payments industry, cloud offerings for payments processing were not yet available, and chip cards, virtual cards, digital wallets, and tokenization were only a dream.

Despite the general move towards internet-based payments, web services and APIs, we learned from our Customers in Latin America that payments in cash performed at remote correspondent banking locations need to work along with the concept of a “Cupo”, which assesses for each correspondent banking participant (based on some scoring criteria and risk factors), the amount of cash that can be kept on site before a flag is raised and transaction processing stopped. We also understood the importance of a solution that can compensate transactions to reward all players in the electronic funds transfer ecosystem, the amounts and complex government tax formulas owed as a result from their participation. We also acknowledged the use of fingerprints and biometrics at a local level as a means for user authentication.

The Evolution of the Business Model

10 years ago, Merchants, Processors and Banks didn’t have a choice.

The “On Premise” business model for a payments’ solution was predicated around the investment of capital to get software licenses, a hardware platform, and assign internal human resources to master, implement, and operate the solution. During the last 10 years we have witnessed how “payments’ solutions” have failed to meet customer expectations as represented by significant deviations in capital investments, need for frequent hardware technology upgrades, penalties arising from failure to meet PCI and local regulations, constant training of human resources, increased payroll expenses, etc. For short, the “On Premise” model for a payments’ solution has failed to positively contribute to the Merchant’s corporate Vision and Mission.

This paradigm has shifted towards a “Cloud” business model, where Merchants lease everything: software, hardware, and human resources to implement and operate a PCI based solution. Merchants pay for the services they consume, forget about software and technology upgrades and focus on their corporate business objectives while leaving the operation of the payments’ solution in the hands of experts. In turn, any Merchant can pay today a low monthly fee to use a world class payments solution.

OmniPayments is “Cloud” ready.

Our solution offers a robust fault tolerant, secure, PCI compliant, and scalable multichannel payments solution that will meet the sales growth while providing a superb payments experience to end customers and operational excellence through our team of payments experts complying with agreed SLAs.

The Challenges

The landscape of the transaction processing business is evolving.

The brands (Visa, MC, AMEX) are extending their reach in many countries looking for additional market share. For example, in Mexico and in Colombia, Visa and MasterCard have set up local entities to compete for the Clearing House business with established local processors. Visa is also promoting direct access to Visanet to reduce the dependency on established local processors in the countries.

OmniPayments has stepped up to this challenge and has been already certified to operate as a Visa Endpoint Processor. OmniPayments is using these licenses today to elevate transactions directly to both Visa and MasterCard for customers in Latin America.

Direct connectivity to Visanet enables OmniPayments to offer customers the consumption of Visa Value Added Services (VAS) as represented by Visa Direct, Visa Token Services and Visa Fraud.

The OmniPayments Standard Offerings

OmniPayments has been able to keep up with many of the challenges that characterize the evolving payments industry. Backed up by our expertise in cryptographic security, we have developed products and services that support the use of mobile devices to pay over the internet for goods and services.

OmniPayments provides full blown solutions to support online payments for Merchants, Processors and Banks. The following picture represents a high-level architecture of the ways in which OmniPayments can be deployed.


The Standard Offering

OmniPayments has been engineered taking these challenges into account. It includes the following “off the shelf, pre integrated” functionality enabled from our Omni software suite: