Comparison Of Cost Of Ownership Between In-House And Managed Payment Service Solutions

By Vivek Singh

The objective of this study is to compare an in-house supported credit/debit card EMV (Europay,MasterCard and Visa) Chip & PIN and PCI-DSS(Payment Card Industry Data Security Standard) accredited payment solution with a managed outsourced payment service solution provided by YESpay through a comprehensive financial model analysis, consisting of cost-of-ownership and cash-flow analysis.

Cost-of-ownership and cash-flow analysis provides a good base for comparing the financial propositions of the two payment solutions, namely, in-house and managed. Combining this with the intangible costs and benefits of the two systems gives a complete comparative analysis.

The result of this study shows that by outsourcing their payment solution to a third party payment service provider, mid- to top-tier retailers can save more than 50% on cost of ownership of their payment solution depending on size of the POS till requirements.