From barter trading where one good is exchanged for another to electronic payment systems – the payment processing industry has taken leaps and bounds in innovation, and it continues to do so. Payments nowadays could be processed through a direct debit system wherein the transaction between an enterprise and its client happens automatically in the cloud, and no physical payment device is used. A direct debit system is one example of cloud-based processes that have revolutionized how entities transact payments.
A quick guide to cloud computing
To better understand how electronic-based payment systems work, the general concept of cloud computing should be considered. The idea of “invisible” transactions concerning cash and other assets may sound intimidating for business owners at first. Still, after understanding the concept, they would realize that cloud computing is to be seen as a friend and not a foe.
The simplest definition of cloud computing is the process of storing and accessing data and information over the Internet instead of doing the same on any physical computer. With cloud computing, a data-dependent business will need only one machine instead of a couple because everything could be accessed remotely via the cloud. Furthermore, cloud computing is often offered by service providers who specialize in different sectors, which eliminates the need to train personnel to maintain the remaining hardware on-site. Since cloud computing is an almost-automated process, subscribers could then focus their efforts on other value-adding ventures.
Reasons to consider cloud-based payment systems
As a business grows and expands, responsibilities and tasks increase, which also means that there is more room for human errors such as missing a payment or forgetting to bill a client. Any traditional type of business relies on profit to survive, and if no income is being generated, the company risks operating in the red. A cloud-based payment system is one way to ensure that cash is flowing through a business.
- Cost: Cost savings is the most significant advantage of using cloud computing for payments. For a brick-and-mortar store that also operates an online shop, fewer cash registers and credit card terminals are needed because all online purchases could be processed through the cloud. Bills, purchase orders, invoices, and other recurring payments could also be handled with an automated direct debit system, which saves time and materials in the long run.
- Speed: Speed is another reason to consider upgrading to a cloud-based system. Cloud computing works at lightning speed, which enables the user to process transactions and deliver their services at a much quicker pace. Physical hardware typically has limits to their capacity. A cloud-based system, on the other hand, provides more flexibility for the business.
- Productivity: Through a cloud-based payment system, sales reports and other financial statements could be generated with a click of a button; thus, eliminating the tedious task of manual bookkeeping and making the decision-making process more productive.
Performance and reliability: A cloud-bas