LONDON, UNITED KINGDOM / ACCESSWIRE / October 31, 2024 / The Money Service Lab (MSL) today announced the launch of its licencing model for entities wishing to become their own issuing processor for Visa, MasterCard, Discover and other card scheme networks. The move comes after the company successfully completed its MasterCard Europe certification, alongside Visa LAC and other ongoing certifications.
Europe alone has circa 5,000 banks in situ and globally the number is closer to 40,000 whilst there are less than 50 processors operating at any scale. The European Central Bank estimated that there were over 72 billion card transactions processed in Europe in 2023.
Lee Britton, Strategy Director at MSL said "When we founded the Money Service Lab in 2021 our vision was based on 2 factors; a huge increase in card-based transactions, whether physical or digital and a gap in the market for banks and issuers to become their own processor, instead of relying on the old incumbents. We set about creating a platform that could cater for three scenarios, the first being the old established ‘Managed Processing as a service', where MSL would run the platform on behalf of our clients and do everything, from soup to nuts.
The second scenario we envisaged was where MSL would still be the certified processor but our clients would run the platform on a day-to-day basis, configuring programmes, changes, fees, limits, spend control functions and multi-currency capabilities for example. But the third scenario we planned for and built, and the one that really interested us the most, was where we could licence or sell the platform to banks, credit card issuers, eMoney institutions, tech companies and integrators, where they would become the certified processor in their own right with access to the source code and ability to customise and change as they wished".
Mike Muscato, CTO for Money Service Lab, stated "What intrigued us at the beginning of the journey was ‘how do we empower more banks and issuers generally to take control of the card systems they rely on and enable them to launch portfolios on their own version of the platform'. We knew it would be a challenge and we had a lot of head-scratching moments in 2022 to figure out how to create multiple instances of the platform, almost at the drop of a hat and to maintain all the functionality available in our platform consistently through our licencing model, without compromising on our enormous processing power and ability to throttle and process circa 9000 Transactions Per Second (9000 TPS). Luckily, we had huge experience of this in our sister company, Muscato Corporation where we licence our switch, ENGIN© to many of the world's largest processors, in Healthcare and Financial systems as examples. We estimate that around 15% of all financial transactions in the USA pass through ENGIN© through our licence customers, so it was a no-brainer for us at MSL to put ENGIN© at the heart of our platform"
Mike Muscato went on to say, "So as we perfected the MSL platform we took a leaf out of the Muscato Corporation playbook and took the same licencing approach, so if you are licencing the MSL platform you are getting also the best of the ENGIN© switch as well, tried and tested by some of the world's largest financial processors.
Conor Doyle, CEO of MSL, said 'With card-based transactions increasing year-on-year at around 15% it is a clearly a fast-growing market, accelerating at a rapid pace. Our belief is that there are too few processors and globally there are just a handful present in every region, mostly managing legacy technical stacks. That gap in the market is where a company like MSL can make a difference. Multi-Currency processing is standard for us, alongside spend controls, fraud and risk monitoring and our pretty much unique ‘Compliance as a Service' risk and AML system which provides the issuer or technology partner with everything needed to be able to control and report suspicious activity to their own regulator, as well as complementing their own internal systems. My belief, having been around processors since the early 2000s, is that we have built something that we can grow globally but we can put the power back into the hands of the banks, credit card issuers and eMoney and Payment Institutions, so that they can process their own cards at a fraction of the cost they pay externally today. Combine that with the ability to move between any one of the three model (managed, hybrid or licenced) as well as the fact we are more than happy to sell the platform as an instance and pass over the source code, makes it, in my view, a pretty compelling proposition'.
About MSL Payments
Headquartered in London, United Kingdom, with offices in USA and Spain, MSL provides an innovative payment solutions platform for banks, credit card issuers, eMoney and Payment Institutions and programmes and programme managers. Currently already certified in Europe and Latin America Caribbean, MSL will continue to obtain certifications globally to help businesses all over the world create awesome customer experiences.
MSL offers a full range of services, including issuing processing either as managed service or as a licence (where the client becomes the processor) as well as market-leading programme management and highly skilled payments expertise to create customisable feature-rich solutions for issuers, businesses, brands and their customers.
About Muscato Corporation
Specializing in developing, marketing and implementing transaction technologies for both established and emerging markets and creating outlets for licensing and operating its solution sets. Muscato has a firmed foundation in several vertical markets, including healthcare and financial payments, with significant financial and operational impact to the overall organization. With over 35 year track record of architecting, developing and implementing highly scalable transaction processing software, managing tens of billions of transactions yearly, Muscato is widely recognized in performance engineering and delivery systems.
Muscato has a worldwide footprint through our suite of products. Products define the next generation of e-commerce platforms, specifically message brokering, card management, fully integrated healthcare payer exchange, money remittance, mobile banking, and transaction security.
For MSL Payments
Come and explore the many opportunities our platform has to offer by visiting us at www.themsl.com or email us on info@themsl.com
For Muscato Corporation
For all enquiries, please reach out to Muscato Corporation at sales@muscato.com or visit us at www.muscato.com/
SOURCE: Money Service Lab
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