In an evolving financial services ecosystem, payment modernization has emerged as a critical focus for banks across the EMEA region. According to the latest Volante Technologies research report, The Big Survey 2025: Modernising Payments, an overwhelming 99% of EMEA banks plan to implement new payment solutions within the next year, with 52% aiming to do so in the next six months.
This near-unanimous drive underscores the urgency for financial institutions to overhaul outdated systems to meet rising customer expectations, regulatory demands, and technological advancements.
The report, released on July 15, 2025, surveyed senior-level banking decision-makers from 11 EMEA countries, revealing a significant shift in the industry’s approach to payments infrastructure.
With nearly half (49%) of banks reporting increased budget allocations for payment modernization over the past year, the average planned investment per bank is approximately $1.42 million.
This financial commitment reflects the recognition that legacy systems—often built decades ago on monolithic platforms like IBM mainframes—are no longer sufficient to handle the demands of real-time payments, regulatory compliance, and customer-centric services.
One of the key drivers of this modernization push is the adoption of cloud-based technologies.
The survey found that 58% of EMEA banks are employing a hybrid cloud approach, blending on-premises systems with cloud solutions to enhance scalability and resilience.
However, a quarter of banks remain primarily on-premises, still exploring cloud options.
This cautious approach highlights a broader concern: while the need for modernization is clear, 33% of banks worry about potential disruptions during the transition, and a similar percentage express concerns about the internal skills required to manage these changes effectively.
The urgency to modernize is further fueled by the rise of instant payments, open banking, and emerging technologies like artificial intelligence (AI) and central bank digital currencies (CBDCs).
As Nihit Ahuja from Volante Technologies noted in a related discussion, the convergence of ISO 20022 standards, instant payment systems, and AI-driven services presents both opportunities and challenges.
Banks must deliver scalable, secure, and compliant systems while navigating legacy technology constraints.
The shift toward real-time payment systems is particularly critical, as customers increasingly demand seamless, instantaneous transactions across borders and platforms.
Moreover, the report emphasizes the strategic importance of vendor selection in this transformation.
With legacy systems posing significant hurdles, many banks are turning to Payments as a Service (PaaS) solutions to accelerate innovation.
PaaS offerings, such as those provided by Volante Technologies, enable banks to outsource complex payment infrastructure while focusing on customer service and revenue-generating activities.
Cloud-native PaaS solutions offer active-active architectures, ensuring continuous availability and enhanced cybersecurity—key advantages over traditional on-premises systems that can take hours or days to recover from failures.
Despite the enthusiasm, challenges remain.
The fear of disruption during system overhauls is a valid concern, as is the skills gap within many institutions.
Additionally, the fragmented regulatory landscape across EMEA complicates modernization efforts, particularly for cross-border payments.
Harmonizing compliance with standards like anti-money laundering protocols and data security laws is essential to reducing friction for banks and their customers.
The broader fintech ecosystem also plays a role in shaping this transformation.
For instance, the rise of embedded finance and digital wallets is pushing banks to integrate payment solutions into non-financial platforms, enhancing customer experiences.
Meanwhile, initiatives like the European Central Bank’s exploration of blockchain for euro transaction settlements signal a future where digital currencies and distributed ledger technologies could redefine payments infrastructure.
As EMEA banks embark on this modernization journey, the focus is clear: replacing outdated systems with agile, cloud-based solutions is no longer optional but a necessity.
With $1.5 million in average spending per bank, the commitment to transformation is evident.
However, success will hinge on strategic partnerships, robust vendor solutions, and the ability to navigate regulatory and operational complexities.
As the financial industry continues to evolve, EMEA banks are poised to lead the charge in redefining the future of payments.