What is an Edge Network?

“An edge network is a type of cloud-based network designed to lighten data-center capacities by relocating many computing tasks away from data-center processing to edge devices, which handle actual data processing chores.” - IBM?

For example, when using a smart home device, like a voice assistant. When you ask it a question, you want a quick response. If all the data had to travel to a central cloud server far away, it would take longer to get an answer. This is where edge networks are useful.??

Reflecting on the above use case, you may be wondering what this looks like in a fintech aspect.??

Well, edge networks have already proven beneficial in data-intensive industries such as streaming and autonomous driving, where real-time interactions are critical. For financial services, where transaction speed, security and compliance are paramount, edge networks offer a crucial advantage by reducing latency and increasing data security, helping issuer processors, like Paymentology, deliver secure payment experiences.?

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Why edge networks matter in financial services?

For financial institutions, edge networks provide secure, high-speed interactions and offer an array of benefits, such as:?

• Lower latency - fast processing is crucial in card transactions and digital payments. Edge networks ensure real-time data processing, so Paymentology’s clients can provide their end-users with? frictionless payments.?
• Increased security - localised data processing enhances security by limiting data exposure to potential vulnerabilities. Sensitive information can remain closer to its source, minimising the risk of unauthorised access during data transfer.?
• Enhanced compliance - In an industry bound by regional regulations, edge networks facilitate compliance by enabling data storage and processing within specific jurisdictions. This adaptability helps fintechs, banks and telcos meet diverse regulatory requirements with ease.??

These benefits make edge networks especially valuable for Paymentology’s clients, which span fintechs, banks, telcos and other sectors that rely on secure, rapid transaction processing.?

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Paymentology and Mastercard’s cloud edge - a trailblazing collaboration?

In 2024, Paymentology became the first customer to simultaneously connect from multiple public cloud providers through Mastercard’s Cloud Edge. This flexibility is a game-changer for Paymentology’s diverse global clientele, enabling a single connection to Mastercard products and services.?

With Mastercard’s Cloud Edge, Paymentology is poised to transform the issuer processing landscape by leveraging several key benefits:?

• Redundancy and resilience - By connecting through multiple cloud providers, Paymentology reduces the risk of downtime. If one provider experiences disruption, another can take over, ensuring continuous service, a critical capability in financial services, where even minor service disruptions can lead to significant revenue loss and customer dissatisfaction.?
• Scalability and flexibility - Mastercard’s Cloud Edge allows Paymentology to scale its resources across different regions, meeting fluctuating demands and supporting global expansions. This adaptability is especially valuable as fintechs, banks, and telcos push into new markets, reducing the need for specialised hardware and physical connections.?
• Data sovereignty and compliance - A multi-cloud approach enables Paymentology to localise data processing in specific regions, helping clients meet regulatory requirements like GDPR and other regional compliance standards. By supporting secure and compliant data residency, Paymentology makes it easier for clients to expand internationally.?

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The evolution of cloud-first infrastructure?

Paymentology’s announcement signals a shift toward edge computing that aligns with the broader trend of cloud innovation, marked by advances in 5G and the Internet of Things (IoT). As data demands grow, edge networks will play an increasingly critical role in supporting real-time transaction processing and improving operational efficiency. By harnessing Mastercard’s Cloud Edge, Paymentology is well-positioned to lead this evolution, meeting the demands of a highly competitive and fast-paced payments industry.?

The future of edge networking in financial services??

As Paymentology’s experience illustrates, the future of edge networking in financial services promises more versatile infrastructures. With edge computing, financial institutions can deliver next-generation services like AI-driven fraud detection, instant cross-border payments and digital wallets. The collaboration with Mastercard positions Paymentology as a front-runner in adopting these innovations, ready to leverage edge networks for real-time decision-making, personalised customer experiences, and robust data protection.?

Paymentology’s collaboration with Mastercard redefines what’s possible in the realm of connectivity for payments. As edge networks become more integral to financial services, Paymentology’s cloud-forward approach is setting the stage for a more responsive, compliant and globally scalable future for issuer processing.?