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Core Banking Conundrum - Keeping Up With Instant Payments and Digital Transactions

29 of September of 2022

por matera


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With over 2B Pix instant payments being processed per month in Brazil, many banks supporting merchants with these high volumes are struggling to keep up. Specifically, their core banking platforms are getting overloaded and sometimes their merchant’s customers can’t make payments.

This issue is driven by the difference in the way instant payments settle compared to credit cards. Instant payment transactions settle in real-time into a merchant’s account whereas credit card transactions are bundled into a single consolidated credit into a merchant’s account.

Even though this is happening in Brazil because of instant payments, banks in the U.S. are struggling to keep up and instant payments transactions are relatively low. Just keeping up with digital transactions generated by Apple Pay, Google Pay, Venmo, PayPal, Zelle and others is challenging. Many U.S. banks are looking for ways to modernize their Core. But, replacing legacy platforms is expensive, distracting and takes a long time.

There are solutions that work alongside legacy core banking platforms to process these instant payments and other digital transactions in real-time and bundle them to share with the Core at a designated point in time saving core processing time and cost.

Matera’s Digital Twin software solution replicates the DDA and other balances on the Core and processes transaction authorizations 24X7. The Core remains a ledger for things like accounting and reporting. Digital Twin works on-prem or with any cloud provider and integrates in a fraction of the time and cost of replacing the Core.

Digital Twin is a smart way for banks to accelerate digital transformation. They can preserve their core investment, replicate data on the core rather than start from scratch, avoid huge transformation projects and test into in a cost effective and low risk way.

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