Cloud-based payments are becoming ever more popular. For example, in 2018, Google launched its Cloud Pay service for small businesses in the US. Meanwhile, Amazon and PayPal have their own payment services that are available to businesses of all sizes.

The cloud offers many advantages for banks and Fintechs. It allows them to scale up their operations quickly and easily, which helps them to reach new customers and make money from them. But it’s not just about making money; it’s also about security and compliance.

5 Crucial Cloud Payment Considerations

1.     Security

Fintechs can benefit from using cloud computing platforms because they’re more secure than traditional on-premise systems. Cloud providers such as AWS and Azure have dedicated teams that monitor their infrastructure 24/7.

They also use state-of-the-art security features like two-factor authentication and encryption to protect customer data.

For example, AWS has more than 100 security certifications for its various services, including Amazon VPC (Virtual Private Cloud), Amazon RDS (Relational Database Service) and AWS CloudTrail — which provides detailed information about API calls made to an account or resource across all services in an organization.

2.     Evolving customer expectations

As customers become more familiar with digital services, they expect an ever-higher level of service from their banks. They want access to real-time information about their accounts, and they expect instant access to their money.

This is particularly true for younger demographics: according to a recent survey by FICO, 70 percent of millennials have used mobile banking at least once in the past 12 months compared with just 44 percent of those aged 55 or over.

Millennials are also more likely to be using non-traditional financial services like peer-to-peer lending and crowdfunding platforms than older generations.

3.     The role of the third-party provider (if you’re using one).

In some cases, banks or fintechs use third parties for their payment processing needs. These providers may already have established relationships with payment processors that offer services in the cloud.

If this is the case, it’s important to understand how much control you will have over these third-party providers’ services and what happens if something goes wrong with them?

4.     Scalability.

Cloud-based payments solutions are scalable, meaning they can grow with your business needs. For example, if you start processing a few hundred transactions per day and then increase to several thousand transactions per day, the cloud-based solution can scale with you.

Summary

Banks and fintechs supporting services like Payzone merchant services must make the right choices when setting up cloud payments.

 

By EDONS