Securing your future with vendors – PayX has helped numerous Banks and Processors with Vendor Selection, whether it is core payments infrastructure, outsourcing/JV to processors, or choosing ATM Multivendor software suppliers. Each time the quality of the process has resulted in a better ‘long term marriage’. One customer, a major Nordic Banking Group, with limited experience of specific market variables associated with running a card acquiring operation, evaluate the tendered responses, pricing & contract terms from their preferred outsource processing partner so that negotiations could be concluded from a solid knowledge base. The result was a win-win tight contract and the customer negotiated the asking price down over 1 million euros without compromising the deliverables.
Defining what a bank or processor needs in the future, and getting internal common buy-in, is a major challenge. The future organisational and business strategy constantly refines, the industry is moving, and the suppliers are predicting (or chasing) to build the next thing their customers want. The reality is there is less money, to do more, in less time. Added to these challenges the industry, along with its incredible level of activity, has an increasing level of hype flowing around. Organisations are demanding more sales and so more sales level “promises” are being given and unfortunately less depth and diligence is occurring. The result is a potentially explosive convergence of factors which could land customer and vendor late in a deal implementation realising the match of need versus capability will never deliver.
So, how do you choose the right vendors, right products and right deal parameters for success?
The Bank engaged PayX to support their vendor selection process. PayX used a standard RFI/RFP selection methodology that has been refined over the years to first identify those elements of the client’s acquiring infrastructure that should be renewed and those that should remain out of scope. The PayX RFI/RFP needs templates were completed, signed off and PayX’s knowledge of the best vendors in the market defined the long-list for response. PayX agreed with the bank the details in a transparent scoring matrix, including weightings, and the responses were processed to the shortlist. The Bank wanted specific addition advice on the pricing & contractual terms being offered by the preferred vendors, to ensure that any commitment entered into would be robust to them for the long term. PayX’s experiences from being in this trusted process many times enabled us to explain and guide the client on the advantages and disadvantages, and where the true negotiating flexibilities are in practice, to enable a win-win for all parties.
Benefitting from PayX’s previous payments vendor selection experience and using our trusted methodologies which promote objective, transparent and auditable selection, then the customer and vendors had a clearly visible and structured process. The detailed needs, responses and assessment enabled all parties to truly understand the commitments and so the end deal enabled all parties to then proceed to a combined win-win position that is sustainable for the future.