What is a payments middleware?

In this midst of so many payment providers and technologies, the biggest challenge faced by enterprises is not the lack of choice, but the struggle to connect. Connecting to payment providers isn’t a clear and effortless process, but a payments middleware can make this process much less painful. In this article, we will explore the meaning of a payments middleware, its role in the payments landscape and the benefits of deploying a payments middleware solution like Imburse.

What is a middleware?

Generally, a middleware is a type of software that enables communication between two or more applications. Essentially, it is the “glue” that facilitates the connection of different software systems, applications, tools or databases. There are various types of middleware, including security authentication, database, transaction-processing monitors, web servers and integrations.

A payments middleware focus on connections within the payments industry. The payment industry is rich of providers and technologies, but companies, particularly more traditional ones, struggle to connect to them. A middleware enables companies to more easily deploy these new providers and technologies available in the market.

How does a middleware work?

Serving as the connector between two applications, a middleware receives and passes information along from one application to the other, usually via APIs. All of this information is held in a database, the system that enables these interactions to happen.  Databases contain all the information requests and answers from the applications, but also allows for changes to be made and offers visibility to all the requests.

A middleware also includes a portal, which is what companies see and the platform they can use to make requests. Companies won’t have direct access to the middleware’s database, so the portal is the only platform they will see. Using Imburse’s example- Imburse offers connectivity to the entire payments ecosystem. Once connected to us, insurers can use our portal to connect to any payment provider or technology in the world, and to customise their settings. Amongst other functionalities, they can connect to any of the PSPs available, make rules for transactions and determine which payment methods they would like to offer their customers.

Benefits of using a payments middleware

Middleware are particularly beneficial when there’s a need to connect a legacy IT infrastructure to a newer technology. Traditional infrastructure are incompatible with modern technologies, making these integrations a very long and arduous process. Middleware take the pain away from integrations by offering integration-free connectivity to these technologies.

Imburse, as we mentioned, offers connectivity to any payment provider or method in any market. This is something that particularly large and traditional companies highly benefit from. With a payments middleware like Imburse, enterprises are able to deploy any technology they want to better serve their customers, and they are able to do so quickly and easily, with no additional resources. A middleware does all the heavy-lifting of integrating to providers for enterprises, so they don’t have to waste their own resources on it.

Alongside being able to easily connect to any PSP or technology, middleware like Imburse also offers a wide range of payment functionalities that can be deployed to optimise your payments system, automate processes and ease day-to-day operations. Amongst others, Imburse offers mandate management tools, smart routing and transaction analytics. On top of this, a middleware often serves a very specific purpose like payment integrations. This means that they are experts on that subject matter and have the necessary experience to help you on your concerns, queries and growth plans.

Middleware are also oftentimes white-label solutions. They are used as a hidden translation layer and, whilst they play a hugely important role in connecting enterprises to all PSPs, their branding isn’t exposed publicly. This means that companies can use the middleware’s software and functionalities, but still put their own brand on it. Having your own brand in the services you provide to customers (even if they are provided by a third-party) has huge value in brand awareness and even credibility. A white-label solution is therefore highly advantageous for your business.

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.