Designing Cloud-based Payments Solutions Of The Future

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The growing popularity of digital payment methods highlights the need for scalable back-end online payment gateway solutions.

Payment methods such as contactless cards and account-to-account transactions have been around for a while, but their popularity has recently skyrocketed. These programs were available prior to the pandemic, but many payment companies did not implement them on a large scale, most likely due to the significant financial and technological investment required to implement them. Merchants and banks must find ways to accommodate this demand as consumers continue to adopt and demand these payment methods on a large scale.

Emerging payment methods necessitate more sophisticated technology than many organizations currently provide. Aging infrastructures can stymie organizations' ability to stay on the cutting edge of payments if they are not digitally transformed or modernized.

And it's not just a passing fad; consumers are doubling down on new technology. According to a Mastercard survey, 79% of global respondents now use contactless payment methods. This forces payment companies to choose ...
... between updating their software to support new payment innovations and falling behind.

Why Cloud-Based Solutions are Necessary to Scale
Digital payment volumes are increasing at an exponential rate; unfortunately, payment companies frequently lack the infrastructure to support the growth. Companies must scale their processing power, but the most traditional option—hardware servers—can be cumbersome and time-consuming. With current supply chain issues, sourcing and deploying physical servers can take months, which banks do not have. It also implies that they must plan far in advance.

The fluctuating volume of payments can also be problematic. Different times of day necessitate different amounts of processing power; businesses must be able to accommodate the busiest periods of the year, but this may result in a lot of wasted capacity during slower periods, draining resources unnecessarily.

Cloud computing addresses both of these issues. Because cloud solutions require minimal hardware, they can be deployed quickly, and financial institutions only pay for the processing power they require, making this system far more cost-effective. Companies can be confident that growing volumes will be handled consistently and efficiently with flexible scaling.

Software Stacks are Evolving
The new wave of payment demands can be overwhelming, especially for vendors who specialize in a specific industry. This is because many software programs lack payment capabilities, let alone the ability to support cutting-edge innovations like contactless. In these cases, it is critical to have the right third-party solution that can integrate seamlessly into the existing software stack, which often means turning to a provider with a proven track record in that specific vertical.

How to Design a Cloud-Based Payments Solution
There is a clear need for cloud-based payment support, creating an excellent opportunity for providers to gain market share. There are several key considerations to keep in mind in order to succeed.

Think Like Your Customer
Consider how the end-user will interact with the platform when developing payments integration. Determine the most pressing needs and priorities for today while planning for the future. By anticipating what consumers will want to see in the near future, providers can ensure that their customers are prepared for the inevitable behavioral shift. Convenience is still one of the most valuable aspects of a system.

Make it as End-to-End as Possible
Merchants face the difficult task of incorporating new technology into their already complex software stacks. The provider who can reduce the stress of this process will benefit greatly. As more solution providers offer comprehensive platforms accessible via APIs, integration becomes incredibly simple. The more comprehensive a provider can be, the more value they can provide to clients—and the more popular that platform will be.

Embrace Flexibility & Scalability
As previously stated, traditional businesses are having difficulty accepting cloud-based best online payment gateway today due to their rapid growth and volume fluctuations. Any third-party software must address these issues if the customer is to successfully launch new tools such as contactless payments or account-to-account transactions. Customers do not want to pay for more capacity than they require; they also want the ability to access additional bandwidth as needed. A cloud-based solution should focus on meeting these requirements with simple and dependable solutions.

Fix Areas of Fragmentation
The last piece of the puzzle is dealing with fragmentation. Many merchants use software infrastructures that are specifically designed for their industry. As a result, cloud-based solution providers must provide products that are easily integrated into these various verticals. If a payments solution does not integrate well with existing software, it can result in fragmented workflows on the customer's platform. As a result, there is insufficient visualization, disjointed business strategies, and an inability to respond to changing market demands.

Cloud-based payment solutions are ideal for scaling
Cloud-based payment solutions have emerged as the only viable option for assisting organizations in scaling with ease. Cloud-based payment processing promises greater flexibility, which is critical for businesses to remain competitive in a highly digitized and responsive payments landscape.