Last editedApr 20222 min read
When it comes to IT, the cloud is at the centre of everything and it’s easy to see why. By decentralising major IT infrastructure, businesses and individuals across the globe are given access to almost unlimited server space that they never have to physically see or interact with. Everything is taken care of for them and the sheer processing power available is incredible. But why are cloud-based payments so popular with banks and businesses alike, and what are the benefits for your business?
Cloud-based payments are the present and future of finance
With the impact of the COVID-19 pandemic triggering a major surge in the use of digital payments, there has never been a more perfect collision of need and technology. As financial institutions were faced with a greater volume of payments than they were perhaps prepared for, the cloud was already waiting to take the load. For banks and other financial entities looking to scale effectively, investing in cloud-based payment services is not an option but a necessity.
What are cloud-based payments?
The cloud is essentially the name given to a cluster of servers hosting data from across the globe. So, if your data is being stored in the cloud, what it actually means is that it’s being stored remotely on a server that could be thousands of miles away. This gives you the power and flexibility to access that data from wherever you might be in the world as long as you have a stable internet connection.
This is what cloud-based payment has to offer – infinite flexibility. A cloud-based payment system lets you take payments on any digital device, free of the restrictions of a traditional POS system. These payments can be contactless credit card purchases, online orders, and everything in between. It’s a complete omnichannel solution that also offers digital receipts for customers, access to intricate sales reports and so much more.
The benefits of cloud-based payment services
Aside from offering a flexible and seamless payment experience for the business and customers alike, cloud-based payment solutions boast the following benefits:
A cloud-based system will offer you 24/7 access to all data and sales reports. This means you can track payments as they happen, which could revolutionise the way you run your business in terms of how reactive you’re able to be. Many systems also include integration with external accounting software such as Xero.
Given that the cloud is still a relatively new technology, many still have misgivings regarding its safety and security, However, cloud-based data is infinitely more secure than a physical system. There’s also the added benefit of having all of your data backed up in the cloud.
With better-integrated data and analytics, businesses will be able to streamline and speed up how they bring new offerings to market. With everything being organised from within a single holistic system its becomes easier to manage the supply chain, inventory, and much more.
Cloud-based payment gateways are very effective when it comes to scalability. They need less initial capital when it comes to implementation and can comfortably be scaled up, often by simply paying a slightly higher fee. For small and medium-sized businesses that have larger aspirations, this is obviously a major benefit, as they might not have the resources available to implement their own payment system.
We can help
If you’re interested in finding out more about cloud-based payments, or any other aspect of your business finances, then get in touch with our financial experts. Did you know that GoCardless has integrations with over 200 partners, including major cloud accounting and invoicing softwares such as Xero, Salesforce, Chargebee, and Zuora?
By signing up to GoCardless, your business can collect both regular and one-off payments quickly, easily, and with reduced costs, while continuing to use your existing financial system for reconciliation and more.