The Commercial Bank of Ceylon has formalized a long-term Technology Services Master Agreement with Bancstac, aimed at establishing a secure and scalable payment processing infrastructure that remains entirely under the Bank’s control. This initiative underscores the Bank’s commitment to leading the digital financial services landscape.
Under this agreement, the Commercial Bank will guide merchants to connect with its Internet Payment Gateway (IPG) and related technology modules for handling online and card-not-present transactions. This solution will create a secure, encrypted link between the Bank’s core systems and Bancstac’s payment infrastructure, eliminating the need for third-party intermediaries. All transaction authorizations and fund settlements will be processed through the Commercial Bank switch, a product of Euronet Worldwide, ensuring comprehensive oversight and governance of transaction processing.
The current IPG supports major card networks, including Visa, Mastercard, and UnionPay, and will soon be expanded to incorporate JCB and Sri Lanka’s National Card Schemes. Additionally, it facilitates LankaQR and other non-card payment options, aligning with the Bank’s strategy to broaden its e-commerce capabilities and promote QR acceptance along with alternative digital payment methods.
With this single integration, the Commercial Bank will benefit from a robust Bancstac technology suite that offers 24/7 monitoring, proactive alerts, operational support, issue resolution, assistance with merchant integration, and ongoing system maintenance and updates. The suite includes tools for merchant onboarding, advanced fraud prevention, risk management, compliance enhancements, refund and chargeback processing, tokenization, hosted payment pages, scheduled payments, simplified e-commerce features, and batch processing. The Bank will receive transaction data, system logs, and automated reporting, facilitating real-time verification of transaction integrity and fee calculations. Bancstac adheres to the highest global security standards in the payment industry, including PCI-DSS and PCI-3DS certifications, as well as compliance with ISO 27001 for information security and GDPR for data protection and privacy.
Crucially, the Commercial Bank will maintain complete control over merchant onboarding, access management, reporting visibility, system utilization, and overall fee assessments. The established monthly fee structure is designed to be transparent and cost-effective, allowing the Bank to oversee all interactions with merchants, including refund approvals and risk management processes. The solution aligns with the Bank’s compliance and data security mandates, as well as the regulatory requirements set by the Central Bank of Sri Lanka concerning payment processing and data protection.
Mr. Seevali Wickaramasinghe, Chief Manager of the Card Center at Commercial Bank, remarked that this agreement represents a significant advancement in the Bank’s digital transformation journey. He stated, “This long-term collaboration with Bancstac empowers us to modernize our payment gateway infrastructure with direct connectivity, full operational visibility, and comprehensive governance control. By implementing a secure and scalable technology stack, we are enhancing our capability to support the rapid growth and innovation in e-commerce and digital payments in Sri Lanka, all while ensuring transaction processing remains firmly within the Bank’s risk and compliance framework.”
Mr. Evan Lau, CEO of Bancstac, expressed, “We are dedicated to providing secure financial infrastructure and next-generation payment technologies to support the Bank’s goal of delivering a reliable and modern digital payment experience to both merchants and customers. Our strategic partnership with Commercial Bank combines advanced payment gateway capabilities, ongoing innovation, and PCI-DSS and PCI-3DS certified infrastructure, along with industry-leading operational support in a cohesive framework. This collaboration also allows the Bank’s merchants to directly engage with Bancstac for seamless acceptance of American Express, Discover Network, and Diners Club cards.”
The Bank noted that merchants utilizing its acquiring services will have access to a continuous flow of upcoming payment innovations, all of which will be seamlessly integrated into the Commercial Bank IPG without requiring additional effort from merchants. Transactions will be processed through this enhanced payment infrastructure, resulting in improved authentication rates, faster authorizations, enhanced security, smoother payment experiences with reduced transaction failures, and increased system uptime. Merchants will benefit from access to various global card schemes, QR-based payment options, and efficient refund and dispute resolution processes, backed by the Bank’s strong governance framework. This strategic partnership marks a critical milestone in the Commercial Bank’s ongoing digital transformation efforts and is in line with Sri Lanka’s broader transition to a digital-first financial ecosystem.
Photo caption: Mr. Evan Lau, CEO of Bancstac, and Mr. Seevali Wickaramasinghe, Chief Manager of the Card Center at Commercial Bank, alongside representatives from both companies during the signing of the Technology Services Master Agreement.
