ConnectPay has successfully transitioned to its proprietary core banking system, Mars, thus reducing its reliance on third-party infrastructure.

Following this development, the Lithuania-based ConnectPay has moved entirely onto an in-house core banking platform called Mars. This shift places ConnectPay among European fintechs that own and operate their critical financial systems. The move aims to reduce a significant external dependency: third-party core banking providers.

Core banking platforms are essential for managing account balances, processing transactions, and facilitating payments. Most fintech companies rely on specialized vendors for this service, accepting some operational dependency in exchange for simplified build processes. However, ConnectPay’s decision to develop Mars internally prioritizes resilience, control, and long-term cost structure over rapid market entry.

Enhancing Uptime and Productivity

According to the official press release, the key benefits of in-house ownership include greater uptime control and faster product development. When external core banking providers face disruptions, it directly impacts customers. By managing its own infrastructure, ConnectPay can address issues promptly without relying on third-party response times.

Moreover, owning the core platform allows ConnectPay to implement changes more swiftly and adapt to regulatory requirements within weeks, rather than months. This agility is becoming increasingly important as the industry evolves.

Regulatory demands are a growing concern in the sector. The European Union mandates that all payment service providers must support instant payments by 2025. These changes are expected to significantly impact how financial services operate, with instantaneous SEPA payments projected to make up about 18% of all European payments by 2035.

A Significant Investment

Developing a proprietary core banking system is one of the most challenging tasks in fintech. It demands substantial engineering investment and the ability to manage systemic risks, making it a path that few companies choose.

Financially, in-house ownership can offer long-term cost savings by eliminating external licensing fees. Over time, these advantages could translate into more competitive pricing for ConnectPay’s clients.

This move reflects a broader trend in European fintech where infrastructure ownership is increasingly seen as a key factor in gaining a competitive edge, especially as resilience standards rise and financial services become more integrated. Currently, only a minority of fintech companies have taken this step.