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Paragon Application Systems Predicts 2017 Payments Trends

Testing, security, EMV and FinTech enhancements shape rapidly evolving payments landscape

HOLLY SPRINGS, N.C., Dec. 29, 2016 –Paragon Application Systems (Paragon) is the leading independent testing services provider for the financial services industry. For more than 20 years, Paragon has provided software testing solutions to the world’s leading financial services brands, including three of the top 10 banks in the United States, three of the top four international card networks, and three of the top five merchant acquirers.  Paragon’s experience serving more than 600 customers in 90 countries has provided it with a unique view of trends and challenges occurring in the financial services space.

Paragon expects 2017 to bring the following trends:

Enhanced testing practices

  • As payments systems continue to evolve in scope and complexity, antiquated testing practices will no longer be good enough to ensure successful transactions. In response to this situation, financial institutions and payment processors will invest in more comprehensive, automated and virtualized testing solutions.
  • As financial institutions and payment processors are expected to test exponentially more code with less of a budget, there will be an uptick in Testing as a Service (TaaS) offerings, allowing organizations to more efficiently and cost effectively test their software.

The continuing rise of DevOps

  • As more financial services providers commit to the DevOps approach, it will be necessary for them to partner with companies that understand can support rapid product development and deployment with continuous integration, continuous testing, and continuous delivery. 
  • This approach, which removes the organizational boundaries between development, operations and testing to drive innovation and a faster time to market, will become the gold standard required for the companies in our industry that want to be in business in the future.

Security

  • Hackers’ methods will continue to become increasingly sophisticated, prompting increased pressure for financial service providers to deploy fortified security methods, including advanced tokenization and encryption.
  • As merchants and financial institutions adjust to EMV regulations, hackers will focus on the ‘low hanging fruit,’ i.e., those organizations that have yet to become EMV compliant.

EMV

  • EMV regulations have changed the user experience, prompting a notable uptick in different payment methodologies, such digital wallets and payment apps.
  • As new EMV deadlines at the ATM and fuel pumps loom ahead in the latter part of 2017, payments processors, ATM providers and certain retailers will spend a significant portion of the year preparing for the shift, coordinating hardware, software and certification testing.  

Evolution, not revolution

  • Recent years have been characterized by emerging technologies, but 2017 will see more innovation within existing technologies.  For example, 2017 will mark the 50th anniversary of the ATM, yet adoption of innovative services in this channel, such as contactless ATMs will continue to be robust over the next 12 months. This phenomenon will be repeated across many of the channels through which financial services are delivered.

Jim Perry, CEO of Paragon, commented, “The payments industry is making strides towards providing ubiquitous user access through a growing number of end points. With such a growing presence comes increasing amounts of complexity, code and processes that must be dealt with by testing methodologies built for this type of environment. Paragon exists to provide financial services companies with solutions that address these conditions. The one thing that is certain about 2017 is demand for next generation testing platforms will increase as the industry deals with more innovation, payment types, security demands and certification requirements.”

About Paragon

Paragon Application Systems is the leading independent provider of simulation, configuration, certification, performance and end-to-end testing solutions for the financial services industry. Paragon has enabled more than 600 financial institutions, major interchanges, software providers and payment processors across 90 countries to improve their quality and reduce time to market. The company’s software and services empower these financial services organizations to deliver the services their customers need when they need them. Visit www.paragonedge.com for more information, and follow our blog at www.testingrevolution.com/blog.

Call us today at +1 919.567.9890 or Email us at sales@paragonedge.com

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