UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                  SCHEDULE 13G

                    Under the Securities Exchange Act of 1934

                          (Amendment No. _____2_____)*

                       Transaction Systems Architects Inc
                       ----------------------------------
                                (Name of Issuer)

                                  Common Stock
                                  ------------
                         (Title of Class of Securities)

                                    89341610
                                    --------
                                 (CUSIP Number)

                                December 31, 1998
                                -----------------
             (Date of Event Which Requires Filing of this Statement)

        Check the appropriate box to designate the rule pursuant to which
                            this Schedule is filed:

                                [X] Rule 13d-1(b)
                                [ ] Rule 13d-1(c)
                                [ ] Rule 13d-1(d)

  *The remainder of this cover page shall be filled out for a reporting person's
  initial filing on this form with respect to the subject class of securities,
  and for any subsequent amendment containing information which would alter the
  disclosures provided in a prior cover page.

  The information required on the remainder of this cover page shall not be
  deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
  Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
  the Act but shall be subject to all other provisions of the Act (however, see
  the Notes).





                                Page 1 of 4 Pages







- --------------------                                    ------------------------
CUSIP No.  89341610                     13G                Page  2 of   4  Pages
           --------                                             ---   -----
- --------------------                                    ------------------------

- ---------- ---------------------------------------------------------------------
        1  NAME OF REPORTING PERSON
           S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

           Warburg Pincus Asset Management, Inc.                    13-2673503
- ---------- ---------------------------------------------------------------------
        2  CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                    (a) [ ]
                                                                    (b) [ ]
           Not applicable
- ---------- ---------------------------------------------------------------------
        3  SEC USE ONLY
- ---------- ---------------------------------------------------------------------
        4  CITIZENSHIP OR PLACE OF ORGANIZATION

           Delaware
- -------------------- ------ ----------------------------------------------------
                         5  SOLE VOTING POWER

                            1,915,100
                     ------ ----------------------------------------------------
     NUMBER OF           6  SHARED VOTING POWER
      SHARES
   BENEFICIALLY             668,100
     OWNED BY
                     ------ ----------------------------------------------------
       EACH              7  SOLE DISPOSITIVE POWER
     REPORTING
      PERSON                2,610,800
       WITH
                     ------ ----------------------------------------------------
                         8  SHARED DISPOSITIVE POWER

                            0
- ---------- ---------------------------------------------------------------------
        9  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

           2,610,800
- ---------- ---------------------------------------------------------------------
       10  CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN
           SHARES (SEE INSTRUCTIONS)

           Not applicable.
- ---------- ---------------------------------------------------------------------
       11  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9

           8.66%
- ---------- ---------------------------------------------------------------------
       12  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

           IA
- ---------- ---------------------------------------------------------------------








Item 1(a):     Name of Issuer:
- ----------     ---------------
               Transaction Systems Architects Inc

Item 1(b):     Address of Issuer's Principal Executive Offices:
- ----------     ------------------------------------------------
               330 South 108th Street
               Omaha, NE  68154

Item 2(a)      Name of Person Filing
- ---------      ---------------------
               Warburg Pincus Asset Management, Inc.

Item 2(b):     Address of Principal Business Office:
- ----------     -------------------------------------
               466 Lexington Avenue, New York, New York 10017

Item 2(c):     Citizenship:
- ----------     ------------
               Delaware

Item 2(d):     Title of Class of Securities:
- ----------     -----------------------------
               Common Stock

Item 2(e):     CUSIP Number:
- ----------     -------------
               89341610

Item 3:        If the reporting person is an investment adviser in
- ------         accordance with ss. 240.13d-1(b)(1)(ii)(E),
               check this box.  [X]

Item 4:        Ownership:
- -------        ----------
               (a) Amount beneficially owned:   2,610,800.

               (b) Percent of class:   8.66%.

               (c) Number of shares as to which the person has:

                   (i) Sole power to vote or to direct
                       the vote 1,915,100.

                  (ii) Shared power to vote or to
                       direct the vote 668,100.

                 (iii) Sole power to dispose or to
                       direct the disposition of 2,610,800.

                  (iv) Shared power to dispose or to
                       direct the disposition of 0.


Item 5:        Ownership of Five Percent or Less of a Class:
- -------        ---------------------------------------------
               Not Applicable.


                                Page 3 of 4 Pages



Item 6:        Ownership of More than Five Percent on Behalf of Another Person:
- -------        ----------------------------------------------------------------
               Warburg Pincus Asset Management, Inc.
               ("WPAM") is an Investment Adviser registered
               with the United States Securities and
               Exchange Commission. WPAM serves as
               investment adviser to many accounts including
               various registered investment companies. The
               securities which are the subject of this
               report are owned by our accounts. In this
               report no account owned more than 5%.


Item 7:        Identification and Classification of the
               Subsidiary Which Acquired the Security Being
               Reported on By the Parent Holding Company:
- ------         ------------------------------------------
               Not Applicable.

Item 8:        Identification and Classification of Members of the Group:
- ------         ----------------------------------------------------------
               Not Applicable.

Item 9:        Notice of Dissolution of Group:
- -------        -------------------------------
               Not Applicable.

Item 10:       Certification:
- --------       --------------
               By signing below I certify that, to the best
               of my knowledge and belief, the securities
               referred to above were acquired and are held
               in the ordinary course of business and were
               not acquired and are not held for the purpose
               of or with the effect of changing or
               influencing the control of the issuer of the
               securities and were not acquired and are not
               held in connection with or as a participant
               in any transaction having that purpose or
               effect.



                                    SIGNATURE

         After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.

Dated: January 8, 1999



                                           By: /s/ Linda S. Iovan
                                              ----------------------
                                              Name:  Linda S. Iovan
                                              Title: Vice President


                                Page 4 of 4 Pages