Advantages of a Cloud Gateway

Payment gateways are essential for merchants. These services give businesses omnichannel payment capabilities, enabling them to accept online, mobile, in-store, and contact center payments — and more. Since the pandemic began in 2020, virtually all merchants needed a payment gateway to continue serving customers – but not all gateways give banks, software developers and their customers to meet growing demands. A cloud gateway gives you that flexibility. 

The Cloud Difference

The environment in which software is developed and its architecture greatly impact what the platform can offer your business. Legacy payment gateways can be extremely beneficial, offering modern features, speed and reliability. The Exact Payments gateway, for example, delivers 99.99 percent uptime and transaction times of less than 700 milliseconds. 

However, cloud gateways have inherent advantages, such as: 

Code: Traditional software development usually involves creating one large “monolithic” program in which all of the solution’s features are interconnected. When the developer needs to make an update or create a security patch, the entire solution must be tested to ensure the change doesn’t interfere with any of the software’s functionality. 

On the other hand, software teams creating a cloud gateway solution use cloud tools, such as microservices and containers to develop or change individual features without impacting the rest of the solution. This enables developers to be more responsive when change is required and virtually eliminating any disruption to operations. 

Scalability: With a cloud gateway, it’s easier to scale services. You can quickly scale up or down, paying only for the services you use rather than the hassle and expense of expanding an account on a legacy gateway sizing it for peak transaction volume that you pay for before you need it. 

Environment: Cloud gateway customers have the advantage of using cloud tools and services themselves. For example, cloud-native solutions offer proof of concept environments that banks or software developers can use to test new payment offerings, and you can spin up test environments to use only when you need them. Furthermore, a cloud gateway gives you the choice of deploying your payment services in the cloud, on-premises, or through a hybrid model. 

Security: Legacy solutions often rely on home-grown solutions to secure a network. In these environments, payments along with various other applications use common infrastructure. This type of IT environment not only divides resources, which could be detrimental to speed and performance, but it can also introduce security threats. Internet-connected applications can be the direct target of cyberattacks, or employee error could create network vulnerabilities that could put payment services and data at risk.

Cloud gateways are hosted in a single-purpose environment, eliminating the opportunity for risk from other applications. Moreover, cloud gateways use industry-standard, audited best practices and technologies to protect the network. Cloud providers invest time and resources to ensure they protect the solution with the strongest possible security.

Reliability: Cloud gateway architecture allows developers to manage the potential for failure with built-in fault tolerance. Microservices architecture enables gateway features to be developed and hosted redundantly, so every element of the platform is always functional. 

Simplicity and efficiency: Leading cloud gateways are designed to make payment service deployment and delivery as simple as possible. They solve legacy problems of interruption to service when changes occur to technology, complicated implementations, and barriers to innovation. With a cloud gateway, a business can deploy payment services quickly and efficiently. 

In addition, a cloud gateway doesn’t require your business to maintain software, infrastructure or security – your vendor expertly manages those responsibilities. As a result, your IT department can operate more efficiently, focusing on other tasks critical to the success of your business. 

Choose the Right Cloud Gateway for Your Business

E-commerce has grown significantly over the past two years. In 2020, retail e-commerce sales increased by a record-breaking 27.6 percent, and eMarketer predicts 14.3 percent growth in 2021. 

An increase in e-commerce activity will likely also mean an increase in the number of payment gateways that emerge in the market. Having options is beneficial, but you also need to carefully vet your choices to find the best payments partner for your business. 

Start by focusing on cloud gateways that give you the reliability, speed, simplicity and innovative features that will help you stand out from competitors and optimize customer experiences. To learn more about how Exact Payments works – and how that can benefit your business – contact us.

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