Payments as a Service (PaaS) offers financial institutions an alternative to managing complex legacy payment infrastructures. It provides access to best-in-class services, new payment schemes, operational support, and compliance management without added capital expenditures. PaaS enables smaller institutions to compete with larger banks and fintechs by offering scalable, reliable, and secure solutions. By outsourcing payments, institutions can reduce costs, maximize margins, and focus on customer experiences. However, PaaS may not suit all organizations; considerations include strategic goals, the true cost of current infrastructure, and the ability to adopt new payment innovations.

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