Cloud Based Payment Gateways for Telecom Service Providers in India- a Possibility

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Cloud based payment gateways for Telecom Service providers in India- A possibility

Divya Lakshmi Gopal divya.lgopal@tcs.com
ABSTRACT

Telecommunication has emerged as a key driver of social and economic development in India. Major sectors of Indian Telecommunication industry are telephony, internet and television broadcasting. A majority of the revenue from telecom industry comes from payments for the services offered. Online payment platforms provide a convenient and faster mode of payments for the increasing number of users in India. This also provides a better opportunity for telecom providers to recover payments from a majority of subscribers, providing them multiple channels for payment. As technology advances and the customer base increases, providing a highly available system for payment and subsequently, uninterrupted services has become challenging for Telcos. Cloud based payment gateways can provide solutions that will assist telcos provide increased customer satisfaction and value addition. INTRODUCTION

Payment gateway is an online interface that can accept payments from the customer, send request for authorization to the acquirer and process customer request, based on confirmation from acquirer. Whether the customer goes for an online payment by logging in to his PC/Laptop by connecting to internet, or he tries making a payment from a point of sale device present, or he tries making a mobile payment, its the payment gateway interface that the customer interacts with. Being the interface between customer and the end system, payment gateways could be customized to provide an array of services to customers. In the simplest terms, cloud computing refers to accessing software and hardware over the internet. Cloud computing can be implemented at different levels, I.e SaaS(Software as a service) or IaaS (Infrastructure as a Service) or HaaS(Hardware as a Service). Implementing cloud computing greatly reduces the initial cost of procuring a hardware or software. Another advantage is that maintenance is mainly the responsibility of the cloud service provider. There are different kinds of clouds like public cloud, private cloud and Hybrid cloud. While implementing a cloud for payment gateway, the main concern would be related to data security and adherence to regulatory laws of the land. Many of the current cloud based payment gateway providers have been able to find a way out of this situation by implementing a private-Hybrid cloud architecture for the clients. This paper aims at identifying the advantages for a telecom provider in India, of implementing a cloud based Payment gateway. CLOUD BASED PAYEMNT GATEWAY - IMPLEMENTATION

Payments through alternate channels have increased manifold, thanks to the advent of technology. Gone are those days when you would see a huge queue in front of a telephone exchange on the payment due date. Convenience is the key word for customer satisfaction. Mobile devices have become an inevitable part of today's living. It is estimated that there are 900 million mobile subscribers in India. There are around 240 million bank account holders. Out of this, 40 % own a mobile phone. Considering the above facts, Mobile payment will become the most popular mode of payment. Availability of affordable handsets, low mobile tariffs and increasing voice and data network coverage across the country will emerge as key drivers for mobile payments in India. To meet the demands of increasing customer base and load of data passing through the system, the investment in infrastructure is estimated to be huge. The payment gateway servers will have to be designed to handle the increasing load. Telcos will have to shell out a huge amount of money in procuring infrastructure. Cloud based solutions, on the other hand, provide an alternative by providing the infrastructure as a service. Telcos would be subscribing to the infrastructure service from the cloud provider and will pay only for...
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