Last Updated on October 10, 2022 by admin
PaaS – Over the years, online payment has transformed and has taken the shape of various online platforms that have made payments secure and more effortless. According to a report, more than 118 billion transactions were processed in 2021. And it is estimated that it will double by 2023.
As the payments market evolved, a new yet promising payment as a service platform(PaaS) technology emerged and became one of the most used payment technologies. As the demands for secure, faster, and reliable payment systems arose along with the boost in technological advancements, it gave rise to PasS as the modern payment market player.
What is PaaS?
Although outsourcing the entire payment stack is an option, a new wave of technology suppliers has developed PaaS, enabling banks to expand rapidly and upgrade their transactions product offering without making a significant initial investment. Most financial institutions outsource their payment gateways, and PaaS emerged as a key platform that has changed institutions’ payment dynamics.
It is a modern cloud-based system run by participants in the PaaS market to offer specialized services such as credit issuance, payment processing, cross-border transactions, payouts, and e-commerce channels.
Traditional payment centers that are based on outdated technology for on-point, batch-based implementations are being replaced by PaaS providers as a more contemporary option. Especially for the quickly expanding real-time transactions market, these batch-based networks represent a major barrier to payment transformation. PaaS is developed for cloud-based, real-time recording setups that demand quick arrangements and are cost-effective.
Who has benefited from PaaS?
Outsourcing payment services by banks and all other financial institutions have become common and necessary for their business. Gone are the days when financial services were only outsourced for a few heavy projects. Nowadays, no matter the transaction value, all payment gateways are outsourced. The payment business is undergoing a fundamental shift because of PaaS providers. PaaS has topped the list of the most preferred payment platforms. Their services are in high demand. And keeping up with rapid expansion is the main goal for the companies that employ them.
Who has benefited from it?
- Financial institutions- The most benefit from PaaS are financial parties that include cost reduction on many levels. Another benefit is risk reduction. ATMs are a typical example of a function that financial bodies outsource. The infrastructure and cash management remain under the bank’s authority even though a third entity owns the ATM equipment. Banks can offer customers access to cash through the payment as a service platform without considerably raising overhead expenses.
- Customers- The customers also benefit from no extra or overhead charges for the transactions. Payments are more secure, easy, and faster, saving a lot of time and effort from the customer’s point of view.
Numerous firms will concentrate on providing value-added solutions across the network as advancements in finance and payments continue. PaaS will probably hasten these quick changes in the payment distribution chain. Also PaaS suppliers can help banks and enterprises adopt a more flexible strategy by providing top-notch products via cloud-based systems. And by doing it efficiently, it brings new goods and payment services to reach the market earlier and help consumers.