A few years back, people used digital payments only in online shopping or somewhere in shopping malls. Nowadays, digital payments are at their peak. Digital payment is becoming a new norm, even for day-to-day money transfers between two groups. 

But how are digital payments linked with cloud-based technology? You will get to know everything in detail.

What was happening in earlier days? Earlier, only financial institutions that included banks & NBFCs, invested in digital payment infrastructure. There has been an exponential increase in digital payments due to the emergence of non-banking payment providers like GPay, Paytm, PhonePay, Apple Pay, etc. With so many new competitors on the market, there is an exponential increase in digital payments. Meanwhile, the number of frauds and failures has also increased substantially.

Due to this phenomenon, digital payment service providers had to develop innovative and futuristic ways to scale their infrastructure. It is where cloud technology plays a game-changer.

Insights of Cloud-Based Payment Technology 

Cloud-based payment technology uses cloud computing infrastructure and services to facilitate payment processing and related functions.

Cloud technology allows businesses to process & manage payments using cloud-based systems securely. Respectively, it offers a range of benefits, including flexibility, scalability, and improved data security.

Moreover, cloud-based payment technology allows businesses to process payments from anywhere with an internet connection. Thus companies can serve their customers more efficiently & conveniently. In addition, businesses can easily integrate cloud-based payment technology with other cloud-based business solutions, such as accounting software, customer relationship management (CRM) systems, and inventory management tools.

Several advanced security features, such as tokenization and encryption, are incorporated into cloud-based payment technologies to safeguard sensitive payment information and reduce the likelihood of a data breach. Altogether, cloud-based payment technology provides a more streamlined, efficient, and secure way to process payments, which can help businesses enhance their overall customer experience.

Importance of Cloud Technology in the Evolution of Payment Systems

The Covid-19 global pandemic has accelerated the growth of digital payments. For instance, peer-to-peer (P2P) networks, &cashless transactions as homebound shoppers purchase groceries and medicines, retail stores offer contactless shopping.

Even though the shift to digital had been underway before the crisis, payment companies are now experiencing dramatic accelerations of three key trends: a need to scale processing, a rise in fraud attempts associated with digital engagement, and the opportunity to adapt to a changing lending and credit evaluation environment.

In this section, we will understand the benefits of cloud-based payment technology. 

A seamless payment experience

First and foremost, it can give you much more flexibility than your traditional store point-of-sale technology.

Cloud-based payment systems can allow payments from mobile devices or through banks over the Internet. In addition, it also lets you implement a truly seamless, omnichannel payment system and take payments online as well as via the traditional EFTPOS system.

Integrated systems

Cloud-based payment systems provide immediate access to real-time sales reports and live data. All of these features may significantly improve the efficiency you manage your business.

Moreover, you may combine your management software or external accounting systems with your payment systems. You can also frequently incorporate rewards programs, gift cards, and loyalty schemes, improving the client experience.

Robust Security 

Security is the biggest concern when it comes to using cloud-based payments. Cloud-based payments are highly secure and much better than physical system’s data security.  Cloud-based payment systems have invested more in robust security measures to maintain PCI DSS compliance.

Speed to Market

The benefits of data integration also extend to increasing the speed of bringing products to market. An integrated cloud-based payment system can integrate with cloud-based ERPs such as Netsuite and JCurve. A cloud-based payments system like Imburse allows you to deploy any payment technology, in any market, within weeks.

Future of Cloud-Based Payment Technology

Almost every business that relies on computer technology has adopted to cloud to different degrees.  The cloud-based digital payment is no exception. Nowadays, cloud-based E-commerce applications provide the potential to scale up services and customer experience as well. Thus, directly increasing the number of digital payments.

Below are the key driving factors that enable cloud technology to future proof digital payments industry.

Scale-up on the fly

Cloud technology can scale up the infrastructure dynamically. Cloud-based digital payment systems typically have a cluster in the cloud behind load balancers. The load balancers redirect the traffic to servers with sufficient bandwidth to fulfill the request. Moreover, cloud service providers can quickly add new servers to the infrastructure to match the rising demand from any application.

Reach the destination faster

Conventional internet payment and transfer methods have a terrible reputation for needing to be more convenient, mainly because of a system of intermediaries called a correspondence bank. Direct communication between the banks of the transmitting and receiving members is necessary.

Hence, the correspondence banking paradigm is disappearing with the use of cloud-based technologies by the global payments network SWIFT, and the correspondence banking paradigm is disappearing.

The payment as a Service Model

With the cloud-based digital payment services products built-in cloud technology, it is easy to expose these as services to banks and nonbanks. Cloud technology has a lot of advantages:

    - Shorter time to market

    - On-demand scale-up and scale-down of the infrastructure

    - Pay per usage rather than fixed pay

    - Enhanced security

    - Provide the best in class payment services per the industry need

Challenges of Cloud-Based Payment Technology

Cloud-based payment technology offers numerous benefits, such as flexibility, scalability, and cost-effectiveness, but it also comes with several challenges. 

Here are some of the significant challenges of cloud-based payment technology:


One of the most significant issues with cloud-based payment technologies is security. Data breaches, hacking, and cyber-attacks are always possible because private financial information is kept on remote servers. Thus, ensuring sufficient security measures to guard against unwanted access is essential.


Businesses using cloud-based payment systems must abide by several laws, including the General Data Protection Regulation (GDPR) and the PCI DSS. It may be challenging to meet these compliance obligations, and failing to do so might result in costly penalties and reputational harm.


Because cloud-based payment technology depends on an internet connection, any lapse in connectivity can impact transaction processing and result in severe economic disruptions. Hence, to reduce downtime and guarantee company continuity, it is crucial to have a robust disaster recovery strategy.


Integrating cloud-based payment technology with existing business systems and processes can be challenging. It requires careful planning and execution to ensure seamless integration and prevent workflow disruptions.


Several variables, including network latency, bandwidth restrictions, and processing speed, can impact the performance of cloud-based payment systems. Choosing a trustworthy and effective cloud hosting providers and optimizing the system for optimum performance is crucial. 

The Final Thoughts

"Cloud-based payment technology" describes using cloud computing infrastructure and services to simplify processing payments and other associated tasks. Cloud-based payment solutions combine cutting-edge security measures, such as tokenization and encryption, to protect critical payment information and lessen the possibility of a data breach.

The Covid-19 epidemic has hastened the rise of digital payments, and the development of payment systems depends on cloud-based payment technologies. Technology for cloud-based payments is scalable, affordable, and future-proof.

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