Architecting The Future Of Payments: Why Reliability & Scalability Matter

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Payments trends come and go, but any potential success for payment companies is based on dependability and scalability.

The payments and online payment gateway industry is always evolving, but the current rate of technological change is unprecedented. Companies may find it difficult to keep up with innovations at every turn unless they have a dedicated technology strategy. However, payment companies must commit the resources required to modernize their infrastructure. It's not just about having flashy features; it's also about serving customers in the digital format that they now prefer.

Modernization is no longer an option. Even among the elderly, digital banking mediums are becoming more popular; according to a recent Finastra and Microsoft study, 70% of Boomers (Gen X) report mobile banking as their primary way of interacting with their finances. Aside from mobile, today's consumers want easy yet secure access to their financial data, as well as smoother, more efficient customer journeys.

Digital transformation can appear to be a daunting task, especially if the organization has not upgraded its technology ...
... in a long time. Resisting modernization only leads to poor outcomes, because technical debt, like financial debt, accumulates. While the initial investment may be significant, it will ultimately be far less expensive than paying to run legacy technology.

Understanding where to focus this digital modernization is critical. Reliability and scalability are two critical areas that should not be overlooked.

The Driving Forces behind Modernization
Companies using legacy technology frequently experience two major issues: unreliable performance and an inability to scale. Both of these characteristics are essential for a successful payments platform. Customers require the ability to access their finances whenever and wherever they are — and they do not want to wait for new services.
Financial institutions should prioritize technology that enables them to deliver superior and consistent customer experiences. Consumer behavior is changing so quickly that investing in software that promotes safe data sharing and seamless integration will be beneficial in the long run.
This was evident during the pandemic. Contactless payments, remote work, and installment payments all existed prior to COVID-19, but it was the pandemic that propelled them to prominence. Organizations that had the right technology in place to support these trends and technologies were well-positioned to profit from their enormous popularity.

How to Fund the Technical Future
Funding new solutions can be difficult. Rather than committing to a full-scale technological overhaul, most financial institutions may opt to focus on short-term fixes that will get them through the next few months — while their legacy system becomes increasingly obsolete. This, however, is a very risky strategy.

Technical debt is risky because it only grows over time. Older systems necessitate more maintenance and manpower to operate, depleting company resources. Furthermore, finding employees to manage these systems can be difficult.

Why Reliability & Scalability Are Key
It is impossible to predict what future consumers will want. However, the best online payment gateway companies can be confident that their customers will always value dependability from their financial providers. Making sure your platform is always functional and fast will go a long way toward keeping customers happy and loyal, regardless of the services they use. A system failure, on the other hand, jeopardizes revenue and reputation.

Reliability is dependent on having a technical ecosystem that can handle traffic spikes as well as new API integrations. Leveraging cloud networks or increased server storage can help improve bandwidth, while other businesses may choose to strengthen their performance through software partnerships. Payments companies will be on the right track as long as they invest for long-term performance rather than just the needs of today's platform.

Another important consideration is the ability to scale. Given the rapid acceleration of change in the payments space and ever-changing customer expectations, the ability to quickly adapt to market demands and increased workloads is critical. Alternatively, a lack of scalability can alienate customers and stifle growth. Having the right technical infrastructure in place is integral to scalability.

Scalability, like reliability, is about providing more internal support rather than adding new features. Companies can protect their operations while freeing up resources for innovative thinking by investing in the foundations of their businesses. Organizations that have the right architecture in place can quickly execute on innovation while remaining competitive in a crowded market.