Payments as a Service explained
Exploring the benefits of DiPocket’s PaaS solution
Payments as a Service (PaaS) is a cloud-based model that enables banks, fintechs, e-commerce and other organisations to outsource their entire payments infrastructure to specialised third-party providers.
PaaS providers enable businesses to integrate secure and advanced payment solutions into their platforms without the need to build or maintain complex in-house systems. PaaS solutions can include card issuing, payment processing, fraud prevention and compliance, as well as value-added services like data analytics and loyalty integration.
How PaaS works
- Cloud-based infrastructure
A third-party provider such as DiPocket hosts and manages the payment infrastructure, including servers, databases, security and compliance protocols. - Organisations access payment services via the internet, integrating them into their own products or platforms through APIs.
- Customisable services: organisations can select the specific payment services they need, such as transaction processing, cross-border payments and card issuing.
- Services including card issuing, payment processing, reconciliation, settlement and reporting are all handled by the PaaS provider.
- Security and compliance: PaaS providers also handle complex aspects like regulatory compliance, security, disaster recovery and system maintenance.
The benefits of PaaS
Payments as a Service providers supply fast, flexible payment solutions which offer a range of benefits over more traditional payment systems. As PaaS is cloud-based and API-driven, PaaS platforms operate in real time 24/7/365 and this delivers many benefits to organisations dealing with funds disbursement.
Cost & scalability
Traditional payment systems have high upfront costs in addition to ongoing maintenance, upgrades, and compliance. Scaling up often means additional capital expenditure and business interruption.
The total cost of payment services is lower with pay-as-you-go or subscription models. Businesses only pay for the services they use, and scaling up to higher transaction volumes is straightforward and cost-effective due to the cloud-native architecture.
Flexibility and Innovation
Organisations can also offer evolving payment technologies such as digital wallets or instant payments though their Payments as a Service provider, without performance limitations caused by onsite hardware, legacy software or an inexperienced team.
Speed to Market
PaaS offers rapid deployment into new markets, and businesses can launch new payment capabilities in weeks – accelerating innovation and responsiveness to market demands.
Card issuing
DiPocket also provides a comprehensive turnkey card issuing solution – brands can offer digital banking services with customised payment cards as part of their Payments as a Service package.
As a principal member of both Mastercard and VISA, DiPocket manages the entire card issuance process, ensuring compliance with stringent regulations. The result is a seamless and secure branded payment card solution which enhances customer loyalty as well as streamlining payment systems.
Compliance & Security
PaaS providers handle all security and compliance, including real-time fraud monitoring and regulatory updates. Providers use advanced encryption, tokenization and fraud prevention technologies to ensure secure transactions.
Cloud storage and API integration enable continuous updates, allowing businesses to stay current with maintenance and security requirements without requiring in-house support. Managed in-house, these would require dedicated teams and resources: PaaS reduces this operational burden and risk for businesses.
What kind of organisations use Payments as a Service
PaaS empowers organisations of all sizes to set up a quick and efficient payment infrastructure. Businesses using PaaS include:
- Non-financial businesses offering financial services (e.g., retail companies adding payment options).
- Financial institutions expanding their product portfolios without building new infrastructure.
- eCommerce startups seeking cost-effective ways to integrate advanced payment capabilities.
- Companies refreshing their payments infrastructure to streamline disbursements such as employee benefits, expenses payments and payroll.
- Organisations looking to streamline diverse disbursements, using a fast and effective payment disbursement system that can handle cross-border payments, making payments to recipients without a bank account or in a cashless environment, and even issuing payment cards limited to specified purposes.
Use Cases for PaaS
DiPocket’s Payments as a Service payment disbursement solution supports organisations across Europe, helping them to deliver funds quickly and safely to their destination. Our customers use PaaS for:
Funds disbursement – issuing funds for payroll, expense management, gift incentives etc
Loan disbursement – allowing lenders to manage loan disbursement and repayment.
Employee benefits – a streamlined, cost-effective and tax-efficient way to reward staff and pay bonuses.
BIN sponsoring – sponsored Bank Identification Number (BIN). A ready-made outsourcing solution for financial institutions that want to enrich their offer with cards and virtual IBAN numbers, enabling them to work with a strong network of partner banks including Mastercard or Visa, SEPA and SWIFT members.
Gift cards – issue single or reloadable gift cards for everything from gifts to product rebates and refunds, compensation for travel delays and client incentives.
Cashless events – an easy and economical way to set up a cashless system. Using standard VPOS terminals and custom branded interfaces, customers can give users full control over spending and increase awareness of their brand.
Payment market trends
The PaaS market is experiencing rapid growth, driven by demand for digital payments, regulatory complexity and the need for agile, cost-effective solutions. The PaaS market was valued at USD 14.52 billion in 2025, according to Mordor Intelligence, and is forecast to reach USD 58.77 billion by 2030.
While traditional payment processors offer an all-in-one solution with little opportunity for customisation, Payment as a Service providers can operate differently. PaaS allows the customer to decide which features they need, and to customise their payments to meet the needs of both their business and their customers.
As payment market trends continue to change and the technology continues to evolve, cloud storage and API-based PaaS solutions enable organisations to lead the way in providing payment disbursement solutions tailored to their users’ needs.
Conclusion
PaaS is a modern, flexible, and cost-effective alternative to traditional payment systems. It enables faster innovation, easier compliance, greater scalability, and lower operational complexity—making it especially attractive for businesses seeking to modernise their payment infrastructure and respond quickly to changing market and regulatory demands.
If you’d like to find out more about DiPocket’s Payment as a Service solution, what it costs and how it can help your organisation, please contact us – we are here to help!
