How Has Cloud Payment Processing Evolved?

Electronic credit card payment processing debuted in 1973. In the early 70’s whenever a consumer went to use their credit card for payment the merchant would call to make sure the card had available funds and get authorization for transaction approval.  In the mid 70’s, an electronic authorization system was introduced and thus began the beginning of how electronic transactions came to be. The means of verification gradually progressed from telephone authorizations toward immediate responses via the internet for transactions at the point-of-sale.

Next-Generation Payment Processing

The first step in the evolution of cloud payment processing was the relatively recent rise of both additional payment methods (such as Apple and Google pay) and cloud-based data security methods such as tokenization, mobile wallets, and verified payments. It is necessary that security protocols keep pace with changing payment methods.

Current Status and Future Outlook

Third-party services have begun to offer easy ways for software developers and their end customers to handle payment data efficiently and securely. Cloud-based point-of-sale systems, and the cloud-based payment processing methods to complement allow software providers to implement hosted payment pages, and other payment processing technologies such as tokenization and card account updater.

It’s been quite a few years since the adaption of electronic credit card payment processing, which has essentially now evolved into cloud payment processing. As software has moved from distributed models (think servers on-site at merchant locations), software developers and merchants can now process payments simply and securely with an ever-evolving array of cloud-based payment integration solutions.