India is a dominating force in the world of real-time payments, driven by the widespread adoption of the Unified Payments Interface (UPI) and the proliferation of digital wallets.
Mobile wallets are widely used for day-to-day transactions in supermarkets, grocery stores and with street vendors.
More than 90% of India’s 1.4 billion citizens hold some form of digital wallet, supported by a large cohort of young, tech-savvy consumers.
The Reserve Bank of India activated the linking of RuPay credit cards with UPI in September 2022. PhonePe activated cross-border payments to foreign merchants via UPI in February 2023 and in that month UPI accounted for more than 75% of India’s retail digital payments.
With payments innovation surging, financial institutions would do well to start assessing how the cloud could help them take advantage of market trends.
Payments processing on the cloud: how does it work?
Cloud technology can play a crucial role in the evolution of India’s payment industry and the evolution of its financial institutions.
Cloud-based processing offers automated processes, scalable storage and computing power, and opportunities for growth. It handles digital transactions by using remote servers instead of localised processing.
Transaction data, customer card information, and payment gateway software is stored in a data centre, freeing up resources for financial institutions and reducing costs. It also offers several other benefits including scalability and security.
The latter is important, as security concerns usually follow questions about the cloud. However, cloud-based payments are just as secure as those processed on-premises, and sometimes moreso.
A future on the cloud
The cloud has increasingly become a part of banks’ strategies to gain a competitive edge in digital financial services. Cloud budgets are rising, with most banks planning to increase their cloud spending in the coming years.
Organisations looking to exploit this new cloud proliferation must seek the right technology partner with the right tools and technology to ensure an effective and secure transition from legacy software.
Undertaking a modernisation journey can be challenging, incorporating steps to ensure new and old systems can cooperate effectively. Furthermore, with a branching Indian diaspora, the country’s banks must be sure their systems operate in multiple jurisdictions effectively for those sending or receiving money from abroad.
Pismo provides a 100% cloud-native SaaS processing platform for banking and cards. Our platform leverages the full capabilities of cloud infrastructure, providing flexibility, scalability, and availability. It can reduce operating cost while ensuring a smooth migration journey from legacy systems.
Meet Pismo at Global Fintech Fest 2024
Want to understand more about how the cloud can create an agile, scalable, and cost-effective future for your organisation?
Pismo is headed to Global Fintech Fest in Mumbai, India. The show, running from 28 – 30 August, will showcase the latest technologies and innovations in financial services.
Pismo’s Varun Dudeja will be at the show ready to talk about how the cloud is powering the future of our industry. Get in touch with him today to arrange a chat!
Sources:
GlobalData, 2023, “India Cards and Payments: Opportunities and Risks to 2026”
