The Importance of Cloud Infrastructure for Payments Modernization

June 17, 2021 1:00 pm ET


The heart of a payment is the processing of a transaction (an exchange of funds for a good or service). In the modern era, most transactions have been card-based; the card acting as the token that is used for identification, authentication, and authorization. However, today we’re seeing alternative methods, payment instruments and various tokens entering the market with accelerated pace.

Giving consumers a choice allows them to “do it their way” and not worry about the backend. Unfortunately, this flexibility disrupts the current linear process and heralds the tipping point in the ongoing struggle for banks and issuers to remain relevant. The new business model being forced upon the traditional banking stalwarts is making them rethink everything from time-to-market to which emerging payment methods to accept.

To be able to meet consumer expectations, embrace the current pace of change (including regulatory requirements), and take advantage of the opportunities that change brings with it, banks need to not only challenge the status quo of the process but the technology; and seek out new approaches such as:

• Cloud-native technology
• Microservices architecture
• Low-code environment
• Continuous integration/continuous delivery (CI/CD)
• API/Third Party Integration

End-in-mind, the future of payments should be consumer centric – any channel, any payment, any authentication, any integration – so that goods are received, and funds transferred with the greatest of ease.

Tim Sloane, VP, Payments Innovation at Mercator Advisory Group
Markus Doeinghaus, Global Engagement Manager | Payment Solutions and Innovation at Diebold Nixdorf


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