Payments Academy
Payment product strategy PAYMENT OPERATIONS STARTED LIVE 01 Payment product strategy - starts with a choice about who the product ACTIVE 02 Price competition - product that promises the cheapest QUEUED 03 Positioning discipline - mistake most payment products make QUEUED 04 Segmentation - Segmentation is the practical tool. QUEUED 05 Product scope exclusions - also states what the product will not do QUEUED 06 Further reading and sources - Last reviewed 7 November 2026. QUEUED A payment product strategy starts with a choice about who the product is for. Step 1 of 6 Payment product strategy STARTED Payment product strategy starts with a choice about who the product ACTIVE Price competition product that promises the cheapest QUEUED Positioning discipline mistake most payment products make QUEUED Segmentation Segmentation is the practical tool. QUEUED Product scope exclusions also states what the product will not do QUEUED Further reading and sources Last reviewed 7 November 2026. QUEUED A payment product strategy starts with a choice about who the product is for.
Price competition PAYMENT OPERATIONS IN PROGRESS LIVE 01 Payment product strategy - starts with a choice about who the product DONE 02 Price competition - product that promises the cheapest ACTIVE 03 Positioning discipline - mistake most payment products make QUEUED 04 Segmentation - Segmentation is the practical tool. QUEUED 05 Product scope exclusions - also states what the product will not do QUEUED 06 Further reading and sources - Last reviewed 7 November 2026. QUEUED A product that promises the cheapest cross-border payment competes on price and must keep its cost base low. Step 2 of 6 Price competition IN PROGRESS Payment product strategy starts with a choice about who the product DONE Price competition product that promises the cheapest ACTIVE Positioning discipline mistake most payment products make QUEUED Segmentation Segmentation is the practical tool. QUEUED Product scope exclusions also states what the product will not do QUEUED Further reading and sources Last reviewed 7 November 2026. QUEUED A product that promises the cheapest cross-border payment competes on price and must keep its cost base low.
Positioning discipline PAYMENT OPERATIONS IN PROGRESS LIVE 01 Payment product strategy - starts with a choice about who the product DONE 02 Price competition - product that promises the cheapest DONE 03 Positioning discipline - mistake most payment products make ACTIVE 04 Segmentation - Segmentation is the practical tool. QUEUED 05 Product scope exclusions - also states what the product will not do QUEUED 06 Further reading and sources - Last reviewed 7 November 2026. QUEUED The mistake most payment products make is to claim all four positions at once Step 3 of 6 Positioning discipline IN PROGRESS Payment product strategy starts with a choice about who the product DONE Price competition product that promises the cheapest DONE Positioning discipline mistake most payment products make ACTIVE Segmentation Segmentation is the practical tool. QUEUED Product scope exclusions also states what the product will not do QUEUED Further reading and sources Last reviewed 7 November 2026. QUEUED The mistake most payment products make is to claim all four positions at once
Segmentation: practical tool PAYMENT OPERATIONS IN PROGRESS LIVE 01 Payment product strategy - starts with a choice about who the product DONE 02 Price competition - product that promises the cheapest DONE 03 Positioning discipline - mistake most payment products make DONE 04 Segmentation - Segmentation is the practical tool. ACTIVE 05 Product scope exclusions - also states what the product will not do QUEUED 06 Further reading and sources - Last reviewed 7 November 2026. QUEUED Segmentation is the practical tool. Step 4 of 6 Segmentation: practical tool IN PROGRESS Payment product strategy starts with a choice about who the product DONE Price competition product that promises the cheapest DONE Positioning discipline mistake most payment products make DONE Segmentation Segmentation is the practical tool. ACTIVE Product scope exclusions also states what the product will not do QUEUED Further reading and sources Last reviewed 7 November 2026. QUEUED Segmentation is the practical tool.
Product scope exclusions PAYMENT OPERATIONS IN PROGRESS LIVE 01 Payment product strategy - starts with a choice about who the product DONE 02 Price competition - product that promises the cheapest DONE 03 Positioning discipline - mistake most payment products make DONE 04 Segmentation - Segmentation is the practical tool. DONE 05 Product scope exclusions - also states what the product will not do ACTIVE 06 Further reading and sources - Last reviewed 7 November 2026. QUEUED It also states what the product will not do, which is as important as what it will do. Step 5 of 6 Product scope exclusions IN PROGRESS Payment product strategy starts with a choice about who the product DONE Price competition product that promises the cheapest DONE Positioning discipline mistake most payment products make DONE Segmentation Segmentation is the practical tool. DONE Product scope exclusions also states what the product will not do ACTIVE Further reading and sources Last reviewed 7 November 2026. QUEUED It also states what the product will not do, which is as important as what it will do.
Further reading and sources PAYMENT OPERATIONS COMPLETE LIVE 01 Payment product strategy - starts with a choice about who the product DONE 02 Price competition - product that promises the cheapest DONE 03 Positioning discipline - mistake most payment products make DONE 04 Segmentation - Segmentation is the practical tool. DONE 05 Product scope exclusions - also states what the product will not do DONE 06 Further reading and sources - Last reviewed 7 November 2026. ACTIVE Last reviewed 7 November 2026. Step 6 of 6 Further reading and sources COMPLETE Payment product strategy starts with a choice about who the product DONE Price competition product that promises the cheapest DONE Positioning discipline mistake most payment products make DONE Segmentation Segmentation is the practical tool. DONE Product scope exclusions also states what the product will not do DONE Further reading and sources Last reviewed 7 November 2026. ACTIVE Last reviewed 7 November 2026.

Key points of this lesson, in order.

0:00 / 3:55 Step 1 of 6

Payment product strategy: choosing who you serve and how you win

Product strategy and business models, Lesson 1 of 7, Narration 3:55, D13 Payments product and business

SettlementLiquidityException

What you will learn

Your objective. By the end of this lesson, you will be able to explain payment product strategy: choosing who you serve and how you win and apply it to a real banking scenario.

Why it matters. For a business analyst, the strategy is the source of every requirement.

Chapter objective: How a payments product is positioned, priced and measured

Key learning points

  • Payment product strategy
  • Price competition
  • Positioning discipline
  • Segmentation: practical tool
  • Product scope exclusions
  • Further reading and sources

Key terms

Settlement: The final movement of funds between banks to discharge obligations created by cleared payments. Settlement is usually made in central bank money or through correspondent accounts.

Liquidity: Cash or assets that a bank can use immediately to meet payment obligations. Banks manage liquidity by forecasting inflows and outflows, funding nostro and settlement accounts, and using central bank...

Exception: A payment that cannot be processed normally and needs manual handling, investigation or repair. Exceptions arise from missing data, failed screening, account errors or system faults.

Payment flow diagram showing Payment product strategy: choosing who you serve and how you win.

Practise this lesson

Exercise

Apply the concept in this lesson to a real banking scenario.

Use the definition, the example and the key points in this lesson.

  1. What to do. Explain the concept in your own words, give a banking example with an amount, and state what goes wrong if it is misunderstood.

Correct result. A correct answer names the concept accurately, uses a realistic banking example with a concrete amount, and identifies the consequence of getting it wrong.

Why. Understanding is not memorising a definition. It is being able to explain it, apply it, and spot the failure it prevents.

Check your understanding

Practice question

Which of the following best describes payment product strategy: choosing who you serve and how you win?

Takeaway and next step

What to remember

For a business analyst, the strategy is the source of every requirement.

Follow a payment through every stage, from instruction to beneficiary credit, and note where it can stop.

Open the Payment Lifecycle Simulator →

Builds on "A compliance operating model for a payments firm: putting GDPR, BSA and DORA together".

Transcript and full text

Show transcript

A payment product strategy starts with a choice about who the product is for. A cross-border payment product for small exporters is a different product from a cross-border product for multinational treasuries, even though both move money across borders. The exporter needs a simple price, a fast settlement, and a clear status. The treasury needs bulk files, liquidity forecasting, and integration with its ERP. A strategy that tries to serve both with one product serves neither, because the requirements conflict at every decision. The second choice is the value proposition, which is the reason a customer picks this product instead of the alternative. In payments the value proposition is usually one of four things: price, speed, certainty, or reach. A product that promises the cheapest cross-border payment competes on price and must keep its cost base low. A product that promises settlement in seconds competes on speed and must hold liquidity in every corridor. A product that promises the payment will arrive on the date stated competes on certainty and must control the full chain. The value proposition must be one thing, not four, or the product has no identity. Positioning follows from the value proposition. A product positioned as the cheapest must be marketed on price, priced transparently, and built to run at scale. A product positioned as the most certain must be marketed on reliability, priced at a premium, and built with the controls that deliver certainty. The mistake most payment products make is to claim all four positions at once, which means the marketing promises what the operations cannot deliver, and the first exception destroys the customer's trust. The competitive landscape in payments is unusual because the competitors are also the infrastructure. A bank that offers a cross-border payment product competes with the fintech that uses the bank's own correspondent network. A card scheme competes with the account-to-account payment that bypasses it. A product strategist must therefore map not only the direct competitors but the infrastructure dependencies, and must ask what happens to the product if a correspondent withdraws, a scheme raises its fee, or a regulator mandates a new rail. Segmentation is the practical tool. A payment product team segments by customer type, by corridor, by payment size, and by urgency. Each segment gets its own price, its own service level, and its own onboarding. A 500 euro payment from a freelancer to a supplier in Poland is not the same segment as a 5 million euro payment from a manufacturer to a supplier in China, and the product must treat them differently, with different screening, different cut-offs, and different status information. The segmentation must be written down, because every later decision refers to it. The strategy document is the deliverable. It states the target customer, the value proposition, the positioning, the competitive map, the segmentation, and the three year ambition. It also states what the product will not do, which is as important as what it will do. A product that will not serve sanctioned corridors, will not offer credit, or will not support a particular rail has a clear boundary, and the boundary protects the team from scope creep. The strategy must be approved by the product owner, the risk owner, and the technology owner together. For a business analyst, the strategy is the source of every requirement. A requirement that cannot be traced to the strategy is a requirement that should be challenged. The acceptance criteria for a strategy document must include a test where a proposed feature is checked against the target customer and the value proposition, and rejected if it does not serve them. Last reviewed 7 November 2026. Further reading: Michael Porter, Competitive Strategy; Clayton Christensen, The Innovator's Dilemma; the Payment Systems Regulator market reviews; McKinsey Global Payments Report 2024.

A payment product strategy starts with a choice about who the product is for. A cross-border payment product for small exporters is a different product from a cross-border product for multinational treasuries, even though both move money across borders. The exporter needs a simple price, a fast settlement, and a clear status. The treasury needs bulk files, liquidity forecasting, and integration with its ERP. A strategy that tries to serve both with one product serves neither, because the requirements conflict at every decision.

The second choice is the value proposition, which is the reason a customer picks this product instead of the alternative. In payments the value proposition is usually one of four things: price, speed, certainty, or reach. A product that promises the cheapest cross-border payment competes on price and must keep its cost base low. A product that promises settlement in seconds competes on speed and must hold liquidity in every corridor. A product that promises the payment will arrive on the date stated competes on certainty and must control the full chain. The value proposition must be one thing, not four, or the product has no identity.

Positioning follows from the value proposition. A product positioned as the cheapest must be marketed on price, priced transparently, and built to run at scale. A product positioned as the most certain must be marketed on reliability, priced at a premium, and built with the controls that deliver certainty. The mistake most payment products make is to claim all four positions at once, which means the marketing promises what the operations cannot deliver, and the first exception destroys the customer's trust.

The competitive landscape in payments is unusual because the competitors are also the infrastructure. A bank that offers a cross-border payment product competes with the fintech that uses the bank's own correspondent network. A card scheme competes with the account-to-account payment that bypasses it. A product strategist must therefore map not only the direct competitors but the infrastructure dependencies, and must ask what happens to the product if a correspondent withdraws, a scheme raises its fee, or a regulator mandates a new rail.

Segmentation is the practical tool. A payment product team segments by customer type, by corridor, by payment size, and by urgency. Each segment gets its own price, its own service level, and its own onboarding. A 500 euro payment from a freelancer to a supplier in Poland is not the same segment as a 5 million euro payment from a manufacturer to a supplier in China, and the product must treat them differently, with different screening, different cut-offs, and different status information. The segmentation must be written down, because every later decision refers to it.

The strategy document is the deliverable. It states the target customer, the value proposition, the positioning, the competitive map, the segmentation, and the three year ambition. It also states what the product will not do, which is as important as what it will do. A product that will not serve sanctioned corridors, will not offer credit, or will not support a particular rail has a clear boundary, and the boundary protects the team from scope creep. The strategy must be approved by the product owner, the risk owner, and the technology owner together.

For a business analyst, the strategy is the source of every requirement. A requirement that cannot be traced to the strategy is a requirement that should be challenged. The acceptance criteria for a strategy document must include a test where a proposed feature is checked against the target customer and the value proposition, and rejected if it does not serve them. Last reviewed 7 November 2026. Further reading: Michael Porter, Competitive Strategy; Clayton Christensen, The Innovator's Dilemma; the Payment Systems Regulator market reviews; McKinsey Global Payments Report 2024.

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