The Money Service Lab (MSL) has unveiled a groundbreaking licensing model that could reshape the landscape of card payment processing. This new offering enables banks, credit card issuers, and financial technology companies to become certified processors in their own right, granting them unprecedented control over their card systems and potentially reducing costs significantly.
With over 72 billion card transactions processed in Europe alone in 2023, and a global market of approximately 40,000 banks served by fewer than 50 processors at scale, MSL's innovation addresses a significant gap in the market. The company's platform, which incorporates the powerful ENGIN© switch from Muscato Corporation, can handle up to 9,000 transactions per second and offers multi-currency processing, spend controls, and integrated compliance services.
This development is particularly significant given the rapid growth in card-based transactions, which are increasing at around 15% year-on-year. By empowering financial institutions to process their own cards, MSL's licensing model could lead to increased competition in the processing market, potentially driving down costs and spurring innovation in payment services.
The flexibility of MSL's offering, which allows clients to choose between fully managed, hybrid, or licensed models, positions the company to cater to a wide range of market needs. This adaptability, combined with the option for clients to acquire the source code and customize the platform, presents a compelling proposition for financial institutions looking to enhance their control over payment processing.
As MSL continues to obtain certifications globally, including recent completions with MasterCard Europe and Visa LAC, the company is poised to expand its reach and impact on the international payment processing landscape. This move could potentially lead to a more diverse and competitive market for payment processing services, benefiting both financial institutions and consumers alike.
