Payments Infrastructure Modernisation in 2025: A Necessity, Not a Luxury

As we approach 2025, the modernisation of payments infrastructure has become an imperative for banks across Europe, the Middle East, and Africa (EMEA). With looming regulatory deadlines for SEPA Instant Payments and SWIFT ISO 20022 compliance, financial institutions are under pressure to update their outdated systems. The transition to a real-time, data-rich financial infrastructure is not merely a compliance exercise; it is a strategic move to meet the demands of customers and fend off competition from digital challengers. Volante Technologies’ Big Survey 2025 offers insights into this transformation, revealing both the momentum and challenges faced by banks in this journey.

The Push for New Payment Solutions

According to the Big Survey 2025, nearly every bank surveyed—99%—is either in the process of implementing a new payments solution or has recently done so. Over half of these institutions expect to roll out their new systems within six months. This urgency is driven by pressure from regulators, customers, and digital competitors. However, modernising payments infrastructure requires significant investment. A substantial 88% of banks anticipate spending between $500,000 and $5 million on this initiative over the next year, with the average expenditure nearing $1.5 million. Notably, Spanish banks are leading the charge, budgeting over $2.4 million on average.

Challenges in Modernisation

While financial investment is crucial, the primary obstacle to progress is the complexity involved in selecting the right vendors and technology partners. This concern, cited by 38% of respondents, surpasses even fears related to cybersecurity and fraud, which are acknowledged by 34% of banks. The rapid adoption of instant payments, particularly in Sweden and Saudi Arabia, has heightened these cybersecurity concerns. The infrastructural backbone is also a focal point, with a hybrid cloud model emerging as the preferred approach for 58% of banks, blending private data centers with public cloud flexibility.

The Rise of Payments-as-a-Service (PaaS)

The Payments-as-a-Service (PaaS) model is gaining traction, particularly in Spain and Denmark. However, only 30% of banks are open to this model, reflecting caution around outsourcing mission-critical services. This hesitancy persists despite internal skills shortages and the pressing need to launch new products. The modular, cloud-native solutions offered by PaaS present a compelling case for modernisation, yet banks remain wary.

Motivations for Upgrading

While regulatory compliance is a significant factor, it is not the primary motivator for modernisation. Only 15% of banks cite compliance as their main driver. Instead, cost efficiency and operational resilience (29%) are at the forefront, followed by customer expectations for real-time payments (20%) and competitive pressure from fintechs (18%). These motivations highlight that banks are modernising not out of obligation but ambition.

The Reality of Compliance and Performance

Despite ambitious goals, the reality of compliance remains challenging. As of mid-2025, more than half of banks (54%) are using translation services to meet ISO 20022 requirements, an interim solution at best. Only 32% have achieved full native compliance, while 14% are still exploring options, with UK banks being the most likely to be unprepared. This delay could result in regulatory penalties and reputational damage. Performance metrics indicate a focus on transaction volume and revenue growth, with 52% of banks using these as success indicators. Additionally, customer satisfaction (43%) and time-to-market for new services (42%) are also critical metrics.

Conclusion

In conclusion, payments modernisation is underway across the EMEA region, but the process is not without its challenges. As banks rush to meet compliance deadlines, the real test lies in selecting the right long-term partners, architectures, and strategic priorities. The institutions that succeed will be those that modernise with clarity and purpose, not just speed. The journey towards a modern payments infrastructure is fraught with complexities, but it is a necessary step to ensure competitiveness in a rapidly evolving financial landscape.