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Insights and Expertise

Revolutionizing decision-making

with payments data

Some financial institutions and payment processors have
tried to keep pace by continually upgrading their legacy
systems with patches and updates. Yet this has left them
with siloed infrastructures that can't be integrated, lack
visibility and leave gaps in the processing of payments.

To capitalize on the full potential of payments data,
companies are recognizing the need for a centralized
repository where data from all disparate transaction
sources is stored and securely managed. This approach
consolidates siloed data from across an organization into

By Jon Protaskey a single, integrated repository.
BHMI Storing payments data in one place, and in a consistent
format, offers many strategic benefits, for example:
n today's rapidly evolving payments landscape,
data is one of the most valuable resources for any • Valuable decisioning power: In many organizations,
company that processes payments, including card payments data is spread across multiple servers and
I issuers and merchant acquirers. That is why new databases. A centralized repository provides an
analytics tools and AI technologies are emerging. These enterprise view of the data and enables companies to
tools allow companies to learn more about their opera- make decisions faster—often in real-time.
tions, enhance customer experiences and transform the
way business decisions are made. It also enables more consistent data with the
removal of challenges such as duplicate records and
However, despite the availability of powerful data-driven inconsistent data. All users have access to the same
decision-making tools, many companies cannot leverage data, which results in consistent decision making
the true potential of their data because it resides in siloed across the enterprise.
databases scattered across many different systems.
• Data enrichment: The ability to ingest data from other
The Payments data landscape systems and enrich standard data offers payment
processors new opportunities. First, it eliminates the
Whether it's credit, debit, prepaid, P2P or other emerging challenges caused by incomplete, inconsistent and
payment methods, payment service providers process a unclean data.
staggering volume of transactions every day.
It also enables them to validate, standardize, and
The Clearing House settles more than $2 trillion daily enrich datasets to fuel customer analytics, improve
through wire, ACH, check image, and real-time payments decision-making and manage risks. Being able to
(see https://t.ly/dlT8e). And Capital One Shopping evaluate available data and integrate external data
Research estimated that more than 1.86 billion credit card into their payment operations enables them to bridge
transactions were processed globally in 2022. knowledge gaps. Furthermore, expanding data
attributes and consolidating data into one platform
The rapid evolution of technology and the emergence enables processors to drive additional value.
of new analytics tools has shown that the power of
payments data cannot be overstated. The ability to access • Value-added services: Beyond internal benefits,
and analyze this data has the potential to revolutionize putting all data in one place enables payment service
decision-making and create new revenue streams. providers to monetize their transaction data by
offering data-as-a-service (DaaS). DaaS is a strategy
The vision of a centralized transaction repository that aims to leverage data as a business asset.
Although companies processing payments have access to DaaS provides a way to manage the massive amounts
valuable data, the current challenge is implementing an of payments data organizations generate every day to
enterprise data management strategy that provides access deliver valuable information to internal and external
to all payments data, regardless of transaction type or clients for data-driven decision making. This data
source. can include insights into customer buying behavior,

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