What are the hidden costs in legacy acquirer infrastructure?

As new fraud protection and transparency demands take centre stage, the outdated tech behind many acquirers is quickly becoming a visible risk. Robin Anderson, Tribe Payments' Head of Product, shares a practical roadmap on how modernising via modular technology can help you break overcome the shackles of legacy infrastructure. 

Recent EU regulations make it clear that payment providers can no longer afford to ignore the inefficiencies buried in their legacy systems.

Payments are processing, merchants are onboarded, and things appear to be running smoothly. But dig a little deeper, and you’ll see why so many acquirers are struggling.

Legacy systems, built through years of quick fixes and patches, are holding companies back. And what was once a flexible, quick-fix approach has led to complex, fragile infrastructure that is bloated with hidden costs and inefficiencies.

Why legacy infrastructure is catching up with acquirers

For years, the fastest way to meet new demands was to simply tack on more solutions. Compliance? Add a point solution. New risk models? Plug in another tool. A merchant needs something your system can’t handle? Bring in a partner.

Over time, these quick fixes accumulate and create a tangled mess of systems that are harder to maintain, more costly, and slower to innovate.

As McKinsey’s latest global payments analysis highlights, this complexity is putting the brakes on acquirers. This equates to higher costs, slower updates, and a growing gap between traditional acquirers and the newer, more nimble competition.

The silent drain of manual processes

Many firms still rely heavily on spreadsheets, duplicated tools and manual reconciliation tasks just to keep systems in sync. Research shows that over 80% of firms still depend on manual tasks in core processes, which drives up costs, reduces accuracy, and opens the door to operational risks.

But it doesn’t end there. Duplicate systems and long change cycles are major red flags that point to outdated, inefficient infrastructure. If updates take weeks or systems overlap, you’re paying for complexity that should be streamlined.

Time to modernise: A step-by-step guide

If you’re ready to tackle the complexity in your infrastructure, the process doesn’t have to be overwhelming.

This is the roadmap you need to guide your modernisation journey:

• Firstly, conduct a full system audit: Start by mapping your existing infrastructure. Identify all systems, dependencies, and integration points. This will help you spot hidden connections and outdated tools that are inflating costs. You might be surprised by what you uncover.

• Then target manual processes: Manual work is one of the easiest areas to address first. Look at tasks like data reconciliation or spreadsheet management. Automating these processes can deliver quick wins by reducing operational costs and errors.

• Next, consolidate overlapping systems: If you have multiple systems doing the same thing, it’s time to streamline. Reduce duplication and eliminate any redundant tools. This will simplify your platform, reduce licensing costs, and improve the overall user experience.

• Remember to prioritise API-first, modular solutions: Adopting modular, API-driven solutions allows you to add new capabilities without disrupting your entire platform. This modular approach also makes it easier to scale, adapt, and innovate as your business evolves.

• Invest in automation and real-time monitoring: Automation can significantly reduce manual intervention, making your operations more resilient. Combine this with better real-time monitoring to catch potential issues before they become problems. This will improve uptime and enable faster decision-making.

• Foster a culture of continuous improvement: Modernisation isn’t a one-off project – it’s an ongoing journey. Keep revisiting your infrastructure to identify new opportunities for improvement. Regular updates, feedback loops, and a focus on agility will ensure your systems remain future-proofed. 

Are you ready to simplify?

At Tribe Payments, we’re here to help acquirers navigate the path to a simpler, more agile payment infrastructure. By focusing on efficiency, flexibility, and innovation, we enable acquirers to stay ahead of the curve and meet the demands of a rapidly changing market.

If you’re ready to cut through the complexity and future-proof your payment stack, get in touch with us today to learn how we can help you simplify and scale with ease.