Merchants and processors are pressured to perform quick updates to accommodate the pace of digital payments. That's causing companies to increase their use of a type of programming that's designed for the layperson.
Called low-code, or no-code, programming, the system uses visual elements in place of programming code. Like an automatic transmission in a car, the gears of code are behind the images, which are easier to understand.
This week, for example,
Low code is becoming increasingly popular for payments, according to Aaron Press, research director for worldwide payment strategies at IDC. In the case of low code, the actual programming can be done by staff at a merchant by clicking on an image that represents the upgrade. That can help firms operate with less IT overhead.
"The constant changes in the industry make it difficult for banks and service providers to keep technology up to date." Press said.
NatWest has accessed the Icon Payments Framework, a development organization that uses low-code technology, to help that bank support the I
New payment types and payment applications require more than just new integrations; they also come with new data requirements, new applications, and new use cases, according to Press. "Low- and no-code systems allow banks and service providers to focus less on technical integration and more on the way the changes impact the business," Press said.
Lendr, a fintech that targets small businesses, uses low code to change lending modeling, a process the company said it has reduced to about four hours. And the technology that performs background checks can now be updated in a matter of days. Most of these changes would otherwise require multi-week IT projects, the company said.
Lendr has made frequent updates over the past year as economic conditions have boosted demand among small businesses for short-term credit, and competition from other fintechs has increased.
"I don't need a database architect, I don't need a development engineer," said Nick Mates, vice president of operations at Lendr, which offers merchant credit based on future payment flows, a small business lending method similar to products from Block and PayPal. "Instead of writing code for a function, you drag and drop elements into a screen. The code is on the back end. So for the developer what you see is what you get."
Lendr is targeting customers that don't necessarily have a long credit history or a large business that provides a lot of data. So decisions on lending need to be made quickly, and the technology that supports those decisions often has to be changed.
"It's mostly mom and pop shops, people who are replacing a pizza oven more than building a warehouse," Mates said.
Coppel, a money transfer firm that recently launched a mobile wallet to add more financial services beyond fund transfers, added low-code programming to upgrade its technology to enable easy onboarding. Consumers can now enroll to receive a virtual debit card from Coppel in a few minutes.
"Our target audience is underbanked or underserved consumers, so there's not a lot of data," said Adrian Jaimes, CEO of Coppel Access. "The rhythm of change may be different than for larger banks so we need to be constantly ready to vary what we do with our app."
Coppel and Lendr are using Outsystems, a technology company that sells low-code programming and lists Western Union among its clients. Western Union, which is using the programming method to add digital financial services support via its WU+ app, did not provide comment by deadline.
Other firms that offer low-code programming include Quickbase, Appian, Mendix and ServiceNow, among others.
Low code is rapidly becoming the standard for adding payment methods to the mix, according to Ron van Wezel, a strategic advisor for Datos Insights.
"By adding a small snippet of code to their webpage, merchants can add new payment methods easily and almost without coding," van Wezel said, adding that core banking providers also offer low code or no code options, enabling financial institutions to deploy business staff rather than IT workers.
"The overarching trend is a focus on developer experience, making it as easy as possible for developers to code," van Wezel said.
And while there is an opportunity to cut expenses and boost speed, there's also a risk to using low code, Press said.
"If a small fintech outsources so much of their infrastructure to other small tech companies, they are introducing potential points of failure that they can't control," he said.
