In an industry once powered by banks and large financial institutions, implementing and maintaining payment systems was a time-consuming and arduous process. However, with payments-as-a-service platforms, banks are realizing the potential to offer a solution that is scalable, secure, and can process higher transaction volumes at lower costs.
PaaS is delivering convenience for customers with streamlined pricing models, enhanced security, innovative payment systems, effortless onboarding, and global expansion prospects. Customers are also rewarded for increasing their transactional volume since PaaS providers now focus heavily on retaining clients than how to generate profits.
In that regard, here are 5 features that payments-as-a-service offers:
- Value of One Provider: Having a PaaS provider means there is always one platform, one interface, and one billing system. Meanwhile, it is no longer necessary to integrate with multiple platforms or providers. PaaS providers largely provide simple fee structures that are aligned with the software provider’s standard pricing model, creating an adaptive solution designed to adhere to industry changes and the needs of niche verticals for any business. Therefore, the technology offered by providers needs to be versatile and simple to implement.
2. Flexible technology: The FinTech industry is focused on innovating existing technology to make complicated payment processes comprehensible yet straightforward for users. Besides, the shift from traditional on-premise, physical servers to cloud-based software solutions minimizes operating costs and allows for payment providers to get their products to market faster. In response, emerging technologies such as omnichannel solutions and digital wallets can reach consumers faster than ever before.
3. A Full-Service Team: With the FinTech industry pivoting away from automated messaging and call centres with prolonged waits, an ecosystem as complex as payments deserves a full service team. Apart from account management to integration support, the portfolio of services offered now makes deciding on a payment provider more difficult.
4. A Highly Cohesive Payment Ecosystem: The open ecosystem is a win-win for all stakeholders. Even so, while it might seem unlikely that payments could increase community, PaaS is fostering a collaborative environment for everyone. With the PaaS model, payment providers build relationships with FIs and Card Networks for customer service. As payment data becomes more sensitive, merchants too, are faster to review untrustworthy providers. Simply put, trust is vital to enhance the performance of the entire payment ecosystem and existing relationships.
5. Updated Security Features: Even as PaaS solutions become more sophisticated, security should always remain at the top of the priority list. To comply with PCI compliance requirements, payment providers generally encounter many procedures before they could process payments. With PSD2 and GDPR, we now have guidelines to share and protect sensitive credit card information. The added advantage of security and simplicity associated with PaaS allows the ISV and merchant to focus on building a customer-focused experience.
As early adopters of PaaS, banks will cement their position as industry leaders. Banks will also be able to direct all their payment flows through one platform, one that is easily adaptable to emerging technologies such as real-time payments and blockchain.