Payment Industry growth in a cloud based world
Financial institutions are migrating payment systems to the cloud, in order to offer better service and greater security to customers.
Until recently, there was an immense fear of migrating to the cloud and it was believed that keeping the data close, in a data system of your own, was the best way to keep your data safe. But security technologies for cloud storage have continued to evolve. Service providers have proven that the cloud can be a secure environment that can provide the payment industry with a business edge.
The rapid growth of computing and the number of transactions in the cloud has been driven by the level of security in it. Since last year, a variety of studies and reports have shown that local IT infrastructure is more likely to be attacked, more frequently, and with many more attack vectors than cloud-based infrastructures.
Currently, money remittance companies in the United States and Europe process their payments in the cloud, using “private clouds” owned by cloud partners, where customer data remains strictly partitioned. In addition, not only financial providers have migrated to the cloud, a huge number of companies have contracted the payment software of a provider for online payments, leaving behind the use of internal software. This provides a winning advantage: the increase in profitability. It is no longer necessary to make large investments in hardware and software since the platform is already ready in the cloud. All this automatically translates into a decrease in operating costs.
In addition, the flexibility and accessibility provided by the cloud also improves the speed of commercialization, the recovery of demand for new products and services by customers and helps companies to be more agile and reduce the environmental impact caused by the physical IT infrastructure. All this leads us to deduce that, the Payment Industry can only improve in a cloud-based world.Cloud-based payment systems, in addition to offering robust security, also make compliance easier to achieve.
Here’s a short list of factors that contribute to this enhanced security and help financial companies comply with regulations:
- Firstly, companies are no longer storing confidential customer payment data on premises, which limits the scope of PCI evaluations and audits.
- Secondly, service providers make the necessary investments in compliance infrastructure, distributing the cost among multiple clients, which allows them to use the best practices for the client.
- More importantly, experienced cloud payment providers are kept up-to-date with changes in current regulations, ensuring compliance with those regulations and avoiding a greater series of changes and adaptations in policies and processes.
In summary, payments in the cloud can only improve performance, by developing and bringing new innovative features to the market much more quickly than when they are built directly in the company. Today, organizations are seeing an improvement in their financial performance as they are lowering compliance costs and increasing data security.
In this way, the most important business decision for companies and organizations in the Payment Industry is to choose the right cloud service provider. At Dade2 we focus on innovation, transparency, accessibility and support, making available to our customers, our extensive experience and knowledge in providing the best protection and security for their data.