Overcoming Challenges in the Payments Sector with Payment-Infrastructure-as-a-Service
Outsourcing is an extremely popular business strategy, especially in the highly competitive FinTech world. And while most of you have likely heard about Software-as-a-service, Infrastructure-as-a-service might still be a relatively new concept to most people.
So what exactly is Payment-Infrastructure-as-a-service? It’s a convenient and streamlined solution that allows banks and other financial institutions to effortlessly manage and operate the technical elements of their payment processes to meet customer needs.
With the help of payment infrastructure providers, banks and other financial organizations are freed from the complexities of building and maintaining their own payment infrastructure. Infrastructure providers do the heavy lifting, from infrastructure updates to security patches, allowing companies to focus on other core parts of their business operations.
And especially now with the growing complexities in the payments industry, it's more crucial than ever for payment providers and Payment Infrastructure companies to work together. But first, what are some of these challenges that the payments industry is facing? Let's find out.
What are the Current Challenges Faced by the Payments Industry?
The payments industry has undergone great transformation over the years. Unfortunately, these emerging trends and innovations have been putting a lot of pressure on enterprises to meet the evolving consumer expectations.
Some of the challenges the payments industry is facing right now includes:
One of the main concerns has been navigating regulatory compliance and the ever-changing security standards in the payments industry. In fact, it has become more challenging for payment providers operating across borders to navigate the complex local, regional, and international regulations.
High Upfront Costs
A significant initial investment is required to build the full payment stacks with the traditional payment models. Not to mention, more costs are incurred with the licensing, tech stack, management, and constant payment model updates.
As the payments industry grows, so does the risk exposure. Today, most of the financial services fraud is somehow related with payment activities. That’s because most legacy payment models lack proper protocols for customer onboarding and monitoring customer activity.
But all hope is not lost! Payment Infrastructure-as-a-Service providers have proven useful in helping banks address these ever-growing security and fraud concerns and changing regulatory requirements.
What is Payment Infrastructure-as-a-Service?
Payment Infrastructure-as-a-Service is a cloud-based solution that utilizes cloud computing to provide businesses with a comprehensive payment processing infrastructure. That can include payment gateways, security protocols, and even compliance measures.
Businesses can integrate these components seamlessly into their applications or platforms, ensuring smooth and secure payment transactions for their customers. This service not only saves time and resources but also provides the reliability and expertise needed to navigate the growing digital payments industry.
The Benefits of Payment-Infrastructure-as-a-Service?
Payment Infrastructure-as-a-Service is a ground-breaking innovation in the payments industry. It’s pretty easy to use and offers tremendous benefits to the user.
And unlike traditional models, you only have to pay a flat monthly rate to use and incorporate this feature into your business. But that's not all! Here are other benefits of Payments Infrastructure as a Service;
Payment Infrastructure-as-a-Service significantly reduces costs, especially for financial institutions. Just by using third party infrastructure providers, payment providers sidestep the initial expenses and ongoing operational costs of building and maintaining payment systems.
This includes hardware, software, security protocols, compliance measures, and dedicated staff. Meaning financial institutions no longer have to employ in-house specialists to cater to new products or features.
On top of that, PIaaS providers offer adjustable price structures depending on your product, transaction volume, and business size. That makes it the perfect solution for any business that wants to enjoy a robust payment system without straining the budget.
Better Customer Experience
Payment Infrastructure-as-a-Service helps to improve the overall customer experience. That’s because it offers a variety of payment options. Most of all, it simplifies the entire payment process leading to shorter queues, and reduced wait time.
And you know what that means? High customer satisfaction rate, which in turn increases your sales and profit. Payment systems provided by PIaaS providers eliminate the need for physical receipts which streamlines the checkout process.
Security and Compliance
Payment Infrastructure-as-a-Service prioritizes security to ensure both the business and the customer are protected. By following stringent security measures, PIaaS providers ensure that critical and sensitive information remains secure throughout the transaction.
Additionally, professional PIaaS providers stay up-to-date with industry standards and regulations. Such commitment to security and compliance instills trust and loyalty in customers and helps to reduce the chances of fraudulent activities.
Payment-Infrastructure-as-a-service allows you to easily scale your payment capabilities up or down as your business needs change. It allows you to accommodate increased transaction volumes during peak periods without the hassle of infrastructure adjustments.
This adaptability ensures that you can maintain a smooth and uninterrupted payment process, even during high-demand periods. Ultimately this enhances customer satisfaction and maintains operational efficiency.
How Soft POS is Changing the Game in the Payments Industry
One of the game-changing innovations in the Payments Infrastructure-as-a-Service industry is SoftPOS. Soft POS is revolutionizing traditional point-of-sale systems. It transforms any hardware with NFC into a secure payment terminal hence simplifying transactions.
As the digital payments landscape evolves, embracing Payment Infrastructure as a Service and solutions like SoftPOS will help your business stay ahead of competitors. On top of that, you'll be able to adapt to evolving payment trends and meet customer preferences seamlessly.
So, Why Partner with NearPay for Your Payment Infrastructure Needs?
If you've been looking to expand your business operations and payment processing methods without the complexities of hiring, onboarding, or training new staff, look no further! NearPay has an excellent track record in delivering Payment Infrastructure as a Service.
We offer banks and financial institutions faster and more cost effective payment processing models, giving them a more transformative approach for conducting business operations. That said, below are some of the benefits of partnering with us for your Payment Infrastructure needs;
Access to Unified Solutions
We offer a unified integration approach, consolidating various payment functionalities into a single, easily implementable solution. This unified integration allows businesses to seamlessly incorporate diverse payment methods, gateways, and processing systems into their platforms. Ultimately, that streamlines your customer’s experience and reduces the complexity of managing multiple payment system components.
Cutting Edge Technologies
By partnering with us, you can also access innovative solutions like the game-changing SoftPOS technology. SoftPOS allows you to transform any hardware device with NFC into secure payment terminals. Therefore, it expands your payment acceptance channels and helps you stay ahead of market trends.
Reduced Operational Costs
Our payment systems reduce the need for extensive in-house development and maintenance. That minimizes operational costs and streamlines your payment processes.
We prioritize the safety of your transactions. Therefore, our Payment Infrastructure solutions incorporate advanced encryption and authentication mechanisms, safeguarding your customers' data. For instance, our Soft POS solution is PCI MPOC standard certified.
As we've seen in this article, Payment Infrastructure as a Service offers unmatched advantages in the ever-evolving digital payments industry. From streamlined operations to robust security measures. So, whether you're a bank, payment provider, or SaaS startup, you can partner with us today to provide your customers with more secure, reliable, and effective payment systems.