Cloud and Digital Payments
The prospect of a global cashless economy is not too distant a reality. Global digital payments are predicted to increase on average by 10.9% reaching close to 726 billion transactions by 2020. As the number and value of digital payments increase globally, the demand placed on digital commerce solutions such as electronic wallets, on security systems, and on network and cloud infrastructures is increasing.
Digital payments require real-time collaboration across various mobile networks, operators, financial institutions, card networks, retailers, and fraud protection services – an incredibly complex process with many moving parts. With all these interlinked components needing to come together, digital commerce providers are having to rearchitect their traditional IT systems to leverage a solution that can manage the increase in data traffic and the need for greater collaboration. Cloud computing plays an integral role in achieving this.
With more and more organizations using the cloud to host their applications, the scope of e-commerce and the volume of non-cash payments will continue to increase.
There exists a direct and secure physical and virtual interconnection between banks, retailers, consumers and all other players in the digital payment supply chain. A position close to the digital edge – where the physical and virtual worlds come together – allows payment providers to connect to customers where they are, to deliver payments that are both fast and secure.
The benefits of cloud computing combined with the appeal of digital payments are poised to outweigh the potential risks. As we have seen recently, Covid 19 pandemic has induced consumers to embrace new forms of contactless payments.
A cloud-based payment system will not only bring added convenience to customers and retailers, but also provide enhanced data security and reduced costs.
Cloud removes the pain for financial institutions having to procure and maintain their own hardware, install and operate the software, and employ a dedicated team for 24/7 monitoring. Cloud technology enables the ability for these firms to update their systems remotely and regularly.
Cloud technology plays a significant role in linking and integrating EFTPOS (electronic funds transfer at point of sale) systems with other services, like Apple Pay.