As the payments industry becomes ever more competitive, issuers, schemes, acquirers and others are looking to add functionality, to expand their geographic coverage, and to differentiate. At the same time the trend towards outsourcing continues.

There are numerous different types of solution provider serving the payments market. For example, there are the major processors enabling card issuing and card acquiring businesses. There are providers supporting ATM networks and businesses. Then there are specialists in a wide range of fields such as fraud and risk management, point of sale (PoS) devices, and – increasingly – mobile payments solutions.

From a solution provider's perspective the dynamic nature of the market presents both opportunities and challenges. Opportunities because their customers or potential customers are looking to do more; challenges as this drives the need for keeping up with that demand, and because non-traditional competitors are emerging on the back of new product types – for example prepaid cards or mobile payments.

Key questions being asked include:

• What new services are my banking customers considering introducing? And of these, for which ones will they really drive adoption?
• What are the implications of the rise of the smartphone app?
• Which new products should I develop and deliver myself?
• Where should I partner with others, and who should I work with?
• How can I offer my biggest customers a differentiated solution whilst maintaining platform consistency and efficiency?