Duck Creek Blog
Blog Post

What Is a Payment Middleware?

December 4, 2023

In this midst of so many payment providers and technologies, the biggest challenge faced by enterprises is not the lack of choice but the struggle to connect. Connecting to payment providers isn’t a clear and effortless process, but a payment middleware can make this process much less painful. In this article, we will explore the meaning of payment middleware, its role in the payments landscape, and the benefits of deploying a payment middleware solution like Duck Creek Payments.

What Is a Middleware?

Generally, middleware is a type of software that enables communication between two or more applications. Essentially, it is the “glue” that facilitates the connection of different software systems, applications, tools or databases. There are various types of middleware, including security authentication, databases, transaction-processing monitors, web servers, and integrations.

A payment middleware focuses on connections within the payments industry. The payment industry is rich in providers and technologies, but companies, particularly more traditional ones, struggle to connect to them. A middleware enables companies to deploy these new providers and technologies available in the market more easily.

How Does a Middleware Work?

Serving as the connector between two applications, a middleware receives and passes information along from one application to the other, usually via APIs. All of this information is held in a database, the system that enables these interactions to happen. Databases contain all the information requests and answers from the applications but also allow for changes to be made and offer visibility to all the requests.

A middleware also includes a portal, which is what companies see and the platform they can use to make requests. Companies won’t have direct access to the middleware’s database, so the portal is the only platform they will see. Using Duck Creek Payments as an example offers connectivity to the entire payment ecosystem. Once connected to us, insurers can use our portal to connect to any payment provider or technology in the world and customize their settings. Amongst other functionalities, they can connect to any of the PSPs available, make rules for transactions and determine which payment methods they would like to offer their customers.

Benefits of Using a Payment Middleware

Middleware is particularly beneficial when there’s a need to connect a legacy IT infrastructure to a newer technology. Traditional infrastructure are incompatible with modern technologies, making these integrations a very long and arduous process. Middleware takes the pain away from integrations by offering integration-free connectivity to these technologies.

Duck Creek Payments, as we mentioned, offers connectivity to any payment provider or method in any market. This is something that particularly large and traditional companies highly benefit from. With payment middleware like Duck Creek Payments, enterprises are able to deploy any technology they want to better serve their customers, and they are able to do so quickly and easily, with no additional resources. A middleware does all the heavy lifting of integrating with providers for enterprises, so they don’t have to waste their own resources on it.

Alongside being able to easily connect to any PSP or technology, middleware like Duck Creek Payments also offers a wide range of payment functionalities that can be deployed to optimize your payments system, automate processes and ease day-to-day operations. Amongst others, Duck Creek Payments offers mandate management tools, smart routing and transaction analytics. On top of this, a middleware often serves a very specific purpose like payment integrations. This means that they are experts on that subject matter and have the necessary experience to help you with your concerns, queries, and growth plans.

Middleware is also oftentimes a white-label solution. They are used as a hidden translation layer, and whilst they play a hugely important role in connecting enterprises to all PSPs, their branding isn’t exposed publicly. This means that companies can use the middleware’s software and functionalities but still put their own brand on it. Having your own brand in the services you provide to customers (even if they are provided by a third party) has huge value in brand awareness and even credibility. A white-label solution is, therefore, highly advantageous for your business.

About Duck Creek Payments

Duck Creek Payments is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Duck Creek Payments, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers’ payment preferences and technologies are ever-evolving, Duck Creek Payments works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Duck Creek Payments will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Duck Creek Payments can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

Keep up on our latest news!
Bruno Soares
Senior Product Director
Bruno Soares is Senior Product Director Duck Creek Technologies, renowned for his passion for the impossible and his ability to build high-performing teams. In his two-decade entrepreneurial journey, Bruno has made a mark in Digital Banking and Payments, e-commerce, Interactive Television, and Aeronautics industries, through hands-on product management. Bruno’s commitment to innovation and talent development is evident in his track record of building teams that excel in tackling challenges. As one of the former Executive Leaders of Imburse AG, an award-winning SaaS Payments middleware for Enterprise, Bruno orchestrated a successful exit via a strategic sale to Duck Creek Technologies, where he continues to bring a wealth of experience and a relentless pursuit of excellence.