How do you know if you are talking to the right payment platform vendor for you?

The process of deciding to go to tender is an enormous undertaking, from getting the board aligned and in proactive mode, to compiling an RFI that truly represents your requirements and choosing who to invite. As a vendor that has been invited to thousands of tenders, we are uniquely positioned to offer a different perspective and we have some pre RFI advice:

Don’t rip & replace without fully exploring the options available to you. Rip and replace may indeed be the best option, however, it also might not be. Once the huge decision for system replacement has been made, the number of FIs that choose to modernise by replacing exactly what they already have with “newer” technology is surprising. This is an opportunity to modernise not just the technology; but your approach. Make sure you explore the opportunity fully.

Do be open to advice from external analyst firms, experts, and the platform vendors themselves. It’s worth having a discussion with potential vendors before you engage with them on an RFI-level. Don’t let your first communications with them just be about whether they meet your tech requirements in a tick box format. Check in and see what they offer, what deployment options are available and whether their mindset to modernisation matches yours.

Do look for hidden costs and look at quoted prices with a long-term view when it comes to value. Do be suspicious of low set up costs as these often come at the expense of transaction fees or man-day rates. If low set up costs are your immediate priority, make sure you are aware of what they are being offset against to ensure complete transparency for your long-term expenditure forecasts.

Don’t inflate your figures and be modest with the projections you supply. It’s great to actively demonstrate faith in the growth of your business, but you will certainly, and literally, pay the price for inflated volumes. It is much more cost efficient to keep projections moderate and ensure a pay-as-you-grow model is available to you, or at the minimum, one with clearly priced tiers.

Do make sure your values align with your vendor. Successful relationships are for the long term and you don’t want to be locked-in with partner that doesn’t share your vision.