Today’s financial institutions face an increasingly sophisticated array of cyber threats. A recent industry report revealed that 49% of attacks against financial institutions originated from phishing, while 20% of ransomware attacks specifically targeted banking institutions. As organizations transition to cloud-based payment solutions, selecting a Payments-as-a-Service (PaaS) provider with robust security measures – and importantly, a proven track record with zero compromises on security – has never been more critical.

The evolving threat landscape

The nature of financial fraud is rapidly shifting. A full 95% of financial services organizations saw an increase in cyber-attacks, with malware, application vulnerabilities, and phishing emerging as the fastest-growing threats. Fraudsters have pivoted now preferring social engineering as their weapon of choice, with scams now accounting for 23% of all fraudulent transactions – a 56% increase from the previous year.

This underscores the importance banks must put on stringently evaluating their Payments as a Service provider’s security posture and track record.  

Essential security features to look for

When evaluating a PaaS provider, financial institutions should prioritize several critical security elements, from security certifications and access control methods to robust data protection and threat monitoring.

Comprehensive certification coverage

In the heavily regulated financial sector, certifications serve as crucial independent validations of security practices. A strong PaaS provider will maintain current certifications including PCI DSS 4.0, SOC 1 and SOC 2 Type 2 compliance, and ISO 27001:2022. These certifications demonstrate ongoing compliance with international security standards across applications, data, infrastructure, and privacy.

Advanced access control and authentication

With human error accounting for 41% of cloud-based data breaches in financial services, sophisticated access management is paramount. Effective providers implement Privileged Access Monitoring (PAM) with multi-factor authentication, Single Sign-On (SSO) capabilities, and role-based access control. These layered controls prevent unauthorized access while maintaining operational efficiency.

24/7 threat monitoring and response

In an environment where threats evolve continuously, real-time monitoring and rapid response capabilities are essential. Modern PaaS providers must maintain comprehensive Network Operations Center (NOC) and Security Operations Center (SOC) capabilities, providing continuous monitoring and immediate incident response. Regular security audits and penetration testing help identify and address vulnerabilities before they can be exploited.

Robust data protection measures

With financial services organizations reporting that an average of 44% of their cloud-stored data is sensitive, the importance of data protection is not new to them. That should extend to your PaaS provider. Measures like using AES-256 encryption for all data, both at rest and in transit, alongside Web Application Firewall (WAF) implementation and comprehensive audit trails for complete visibility into system activities are non-negotiables.

Business continuity

In financial services, system downtime isn’t just an inconvenience – it can mean millions in lost transactions and a damaged reputation. Service reliability must be a top priority, demonstrated through regular disaster recovery testing, high availability setups, and well-documented incident response procedures.

Making the right choice

When selecting a PaaS provider, remember that security isn’t just about features – it’s about culture and proven results.

Volante Technologies stands out as the secure Payments as a Service provider of choice, maintaining a perfect track record with zero compromises on security while serving some of the world’s largest banks and financial institutions. By carefully evaluating potential providers against these security criteria, financial institutions can ensure they’re choosing a partner that will help them maintain the highest levels of security while delivering innovative payment solutions.

Learn more about Volante’s Payments as a Service model.