Cloud-based payment processing is one rising star in the banking services industry. Cloud computing technology offers a compelling combination of flexibility, security, and scalability, making it a potent tool for banks looking to enhance their payment infrastructure. Cloud-based payments propel banks into a future of seamless transactions and unprecedented scalability.
Introducing cloud payment processing systems
Using cloud technology, these systems store, process, and transmit data online, so that everything is stored remotely in the cloud rather than on local servers or personal computers. Cloud technology eliminates the need for banks to rely on complex hardware and software so that they can implement payment solutions quickly. And with a cloud-based payments platform, banks can launch new products without disrupting their existing infrastructure.
Benefits of a cloud-based payment system for banks
There are numerous benefits to leveraging cloud-based payment processing technology in banking operations.
Here are just a few in the payments space:
Improved security
Cloud-based payment processing systems are designed with security in mind. They employ a variety of techniques such as encryption algorithms, to protect customer data from threats like fraud and identity theft. These systems often come with built-in security protocols such as encryption and tokenization, further enhancing the safety of transactions.
Easy to integrate with your tech stack
Cloud-based payment processing systems are often compatible with multiple payment methods and can easily integrate with existing banking infrastructures. This compatibility and integration capacity streamline operations, making transactions more efficient and customer-friendly.
Depending on how you implement cloud-based systems, you don't need to completely revamp your existing technology, either. At Episode 6, we follow a progressive modernization approach. This way, you can integrate newer cloud technology into your existing systems with reduced downtime, all while still bringing your products to market faster than before.
Plus, cloud-based solutions enable banks to access valuable customer data and reports with ease. This data can then be used to better understand customers’ needs and develop targeted products and services accordingly.
Enhanced user experience with cloud-based payment platforms
Cloud-based systems enable banks to process payments quickly and accurately, resulting in greater customer satisfaction and improved efficiency across the board. Banks can also leverage cloud-based platforms to provide customers with an array of services and features that are not available otherwise, such as subscription-based services, digital wallets, and in-app payment options.
Cost savings through scalable and reliable cloud-based services
The use of cloud technology ensures that these systems are easily scalable, allowing banks to increase their processing capacity as they grow. This scalability results in cost savings, as banks are able to adjust their payment infrastructure without large investments.
In fact, maintaining legacy technology costs you more than it would to upgrade to a cloud-based system with a progressive modernization approach. In the payments industry, we've found that the rising cost of maintaining your legacy technology is 7.8% per year. Compared to a 42% surge in revenue once you make the switch (even factoring in the costs of transitioning your system into the cloud), it's a no-brainer.
How E6 can help your bank become future-ready
Cloud-based payment processing provides banks with the tools and capabilities to stay ahead of the competition in an increasingly competitive banking landscape. With proper implementation, it can be a powerful enabler of growth and innovation for any financial institution.
At E6, we help financial institutions and banks like yours grow and expand business opportunities with the latest in payments technology. Our future-ready cloud-based payment systems are ready to scale with you, allowing you to offer digital payments, contactless credit card purchases, and more ways to create a seamless payment experience for your customers. Contact us today to see how we can modernize your pay tech without disrupting your existing tech stack.
