Embracing the Cloud: Future-proofing Payments Technology with the Cloud Paradigm

According to Gartner, the cloud will be ‘the centerpiece of new digital experiences’.

Gartner backs this up with promising numbers — globally, the cloud revenue is projected to reach $474 billion in 2022, up from $408 billion in 2021.

Let’s backtrack a bit here to understand the reason behind the surge in the adoption of the cloud.

This spike in adoption has to be attributed to the pandemic that has turbocharged digital payments — spurring a dramatic shift in the payments space.

In recent months, within the industry itself, we’ve witnessed a massive need for next-generation payments technology.

If you were to think about it, with the payments ecosystem undergoing this accelerated pace of change — migration to the cloud becomes an urgent priority (one that can no longer be ignored)!

With all this in the backdrop, it wouldn’t be wrong to say that ‘all roads lead to the cloud’.

The silver lining is in the cloud

Be it public, private, or hybrid — the power of the cloud remains undisputed!

I’d say, for all of us in the industry, the cloud sure has come a long way from just another emerging trend to being a critical tool for thriving in today’s competitive payments marketplace.

Having said that, the scale and adoption of cloud technology in the payments industry need a quantum jump to keep up with the rising customer expectations!

Payments modernization is a $300 billion opportunity and has become a top priority for 7 out of 10 banking executives. This makes it all the more important to look to the cloud; especially at a time when process re-engineering and modernization of monolithic, legacy payment systems are crucial.

The technological arms race is heating up and if there is one way that organizations can get ahead, it is by tapping into the transformative potential of the cloud.

Supercharge payments innovation with cloud technology

Cloud technology has been a game-changer, to say the least.

The advent of cloud computing technology has had far-reaching effects in the financial services industry. I’m sure my peers would agree when I say that we’re seeing productivity and profitability reach new heights as a result of migrating to the cloud.

To top it off, cloud payment providers like Stripe and Adyen have maintained an impressive growth trajectory.

So here’s the thing — the demand for digital payment options is greater than ever before and if you’re looking to scale up with an innovative payments infrastructure, then the cloud is the way forward!

On that note, let’s run by the benefits of moving to the cloud:

1. Dynamically scale-up payments infrastructure:
   Flexibility and the ability to scale up on the go, are among the prime benefits that cloud technology brings to the table. Payments is an industry where you are bound to experience peaks in volume (especially during the holiday season) — and the cloud gives you the ability to cope up with this immediate spike in payment volume.
2. Develop agility in the face of disruption:
   Cloudification of payments allows you to respond to changing market conditions in agile ways. Agility is a critical factor in payments. With an agile cloud technology platform, you can cut down timelines for digital delivery, drive continuous payment innovations and seize new opportunities. That’s not all, the cloud is highly compatible with API ecosystems and data management platforms. This makes cloud an attractive proposition for organizations that are looking to refine their offerings by harnessing the power of data.
3. Leverage in-built security
   In recent years, we have seen cloud outages hitting some of the corporate bigwigs, raising concerns around cloud-based services. The truth is that public cloud solution providers are dedicated to offering high security, in most cases, more than what is offered by on-premises solutions. This is why AWS, Google Cloud, Microsoft Azure, and other renowned cloud technology providers have in-built security systems and are constantly upgrading their services to combat increasing vulnerabilities.

Building a Successful Cloud Future

Misconceptions about the cloud have crept up over the years, often dissuading businesses from moving forward and seizing the opportunities presented by digital payments.

Mary McHale, Director Strategic Accounts at Equinix, puts it across in the best possible manner.

Source: Meet-Her — She Knows Payments

Most organizations today are toying with the question of when to move to the cloud. If you ask me, I’d say the time is now.

Lightning-fast reprioritization and rapid implementation of technology solutions is the need of the hour. So it’s best not to wait till the choice is thrust upon you. Embark on your cloud payments journey today and build for the future.

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