Financial institutions are accelerating the adoption of Payments as a Service, driven by customer demand for instant transactions. However, as payment speeds increase, so do security risks. Fraudsters are continuously evolving tactics, and security certifications play a crucial role in mitigating risks, maintaining compliance, and building trust in the payment ecosystem. PaaS providers that banks partner with must ensure they have the necessary safeguards.

With cyber threats becoming more sophisticated, financial institutions must find providers that adopt robust security frameworks that align with global standards. Security certifications provide PaaS providers with the necessary security foundations.

Payment Card Industry Data Security Standard (PCI DSS) 4.0 in Payments as a Service

The Payment Card Industry Data Security Standard (PCI DSS) 4.0 is a critical certification for PaaS providers handling card transactions. It establishes stringent security protocols to protect cardholder data from breaches and unauthorized access. This certification ensures that thepayment infrastructure remains resilient against cyber threats while maintaining compliance with regulatory standards.

One of the key enhancements in PCI DSS 4.0 is the focus on risk-based authentication and stronger encryption standards. PaaS providers must implement multi-factor authentication (MFA) to secure access to payment systems. Additionally, organizations are required to conduct continuous security assessments, ensuring that vulnerabilities are identified and mitigated in real-time. These measures significantly reduce the risk of account takeovers and fraudulent transactions.

PCI DSS 4.0 emphasizes continuous monitoring and real-time threat detection as fraud schemes evolve. Financial institutions must find PaaS providers to deploy Intrusion Detection Systems (IDS) and Web Application Firewalls (WAF) to detect anomalies in payment transactions. This proactive security approach helps prevent unauthorized access, reducing the likelihood of data breaches.

PaaS providers that achieve PCI DSS 4.0 compliance can ensure the secure handling of payment data across multiple channels. PCI DSS 4.0 certification provides a comprehensive framework for safeguarding sensitive financial information, whether processing card-not-present transactions or in-store payments. As digital transactions continue to rise, maintaining PCI DSS compliance is essential for minimizing fraud risks and protecting customer trust.

SOC 1 Type 2 and SOC 2 Type 2 for Payments as a Service

SOC 1 Type 2 and SOC 2 Type 2 certifications focus on internal controls related to financial reporting, security, availability, processing integrity, confidentiality, and privacy. These certifications are essential for PaaS providers that provide payment services and require third-party validation of their security and operational controls.

SOC 1 Type 2 ensures that PaaS providers maintain accurate financial reporting processes with minimal risk of data manipulation. This certification is particularly important for institutions involved in fund transfers, treasury operations, and financial reconciliation. By obtaining SOC 1 Type 2, organizations demonstrate their ability to maintain secure, compliant financial transactions.

SOC 2 Type 2 extends beyond financial reporting to address overall security, availability, and privacy. This certification requires PaaS providers to implement robust data encryption, access control mechanisms, and real-time security monitoring. These measures help prevent unauthorized access to payment systems, reducing the risk of fraud and data breaches.

A key advantage of SOC 2 Type 2 compliance is the emphasis on incident response and disaster recovery. PaaS providers that maintain a structured plan to address security incidents, ensuring minimal disruption to payment operations, are ideal for their banking partners. This proactive approach enhances resilience, particularly in Payments as a Service, where transaction continuity is critical.

ISO 27001 – Establishing a strong information security management system

ISO 27001 is an internationally recognized standard for Information Security Management Systems (ISMS). It provides a comprehensive framework for PaaS providers to manage and protect sensitive data, ensuring compliance with global security standards. With Payments as a Service increasing the volume of transactions processed daily, implementing ISO 27001 is essential for risk mitigation.

PaaS providers that implement risk assessment and mitigation strategies to identify vulnerabilities in payment systems are significant for financial institutions to pay close attention. ISO 27001 mandates continuous monitoring and security audits, ensuring institutions stay ahead of emerging threats. This certification also requires organizations to establish structured access control policies, preventing unauthorized personnel from accessing payment infrastructure.

One of the key benefits of ISO 27001 is its focus on security awareness and training. Secure PaaS providers educate employees on cybersecurity best practices to prevent social engineering attacks. As fraudsters shift towards exploiting human vulnerabilities, ongoing security training is critical for reducing risks.

ISO 27001 also enhances incident response and business continuity planning. In the event of a security breach, PaaS providers with this certification have predefined procedures to contain and remediate threats efficiently. This ensures minimal disruption to Payments as a Service, maintaining banks’ customers’ confidence in payment systems.

ISO 27017 – Strengthening cloud security for Payments as a Service

As providers and financial institutions transition to cloud-based payment platforms, ISO 27017 certification has become increasingly important. This certification focuses on cloud security best practices, ensuring that institutions maintain secure and compliant cloud environments for payment processing.

One critical requirement of ISO 27017 is secure access control for cloud environments. Secure PaaS providers implement identity and access management solutions, restricting unauthorized users from accessing cloud-based payment infrastructure. These controls prevent unauthorized modifications to payment data and enhance transaction security.

ISO 27017 also mandates continuous monitoring and threat intelligence integration. Safe PaaS providers deploy automated security tools to detect and respond to suspicious activities in real-time. This proactive security approach minimizes the risk of cloud-based payment fraud.

Data encryption is another fundamental aspect of ISO 27017. PaaS providers that have security top of mind ensure that payment data is encrypted both in transit and at rest. This prevents cybercriminals from intercepting and manipulating financial transactions. With cyber threats targeting cloud-based services, encryption remains a vital security measure amongst financial institutions.

ISO 27018 – Strengthening privacy protections in cloud-based payments

As PaaS providers migrate payment processing to the cloud, protecting personally identifiable information (PII) becomes a top priority. ISO 27018 is a globally recognized standard that provides a framework for cloud service providers to implement strong data privacy controls. This certification ensures that PaaS providers using cloud-based payment solutions maintain compliance with strict privacy regulations while securing sensitive customer data.

One of the key principles of ISO 27018 is data minimization, which requires PaaS providers working with financial institutions to collect and store only the necessary personal data for payment processing. This reduces the risk of exposure in the event of a cyberattack and helps institutions align with data protection regulations such as GDPR and CCPA.

ISO 27018 also emphasizes customer control over personal data, requiring institutions to provide clear policies on how customer information is handled. PaaS providers must enable customers to manage their data, including requesting access, corrections, or deletions when necessary. This transparency fosters trust and ensures compliance with evolving privacy laws.

A critical aspect of ISO 27018 is data residency and processing transparency. PaaS providers using cloud-based payment solutions must clearly define where customer data is stored and processed. This is essential for institutions operating across multiple jurisdictions, as different regions have specific data protection requirements.

For providers offering Payments as a Service, ISO 27018 enhances security and privacy governance in cloud environments. With cyber threats targeting cloud-based services, ISO 27018 provides a robust framework to mitigate privacy risks in digital payments.

ISO 27701 – Strengthening privacy information management for payments

With increasing regulatory scrutiny on data privacy, ISO 27701 gives PaaS providers and financial institutions a structured Privacy Information Management System (PIMS). This certification extends ISO 27001 to include specific privacy controls that help organizations manage compliance with global privacy regulations such as GDPR, CCPA, and APAC data protection laws. For providers processing Payments as a Service, ISO 27701 ensures that customer data remains secure and compliant with the latest privacy standards.

One of the fundamental requirements of ISO 27701 is privacy risk assessment and governance. PaaS providers with secure measures have a structured process for identifying, assessing, and mitigating privacy risks in payment operations. This includes defining clear policies on data collection, usage, retention, and disposal to align with regulatory requirements. A strong governance framework enhances accountability and ensures that privacy policies are consistently applied across all payment channels.

ISO 27701 also focuses on third-party risk management, ensuring that PaaS providers work only with cloud and payment service providers that comply with privacy regulations. This is especially critical for institutions that outsource elements of their Payments as a Service infrastructure.

Another key component of ISO 27701 is customer rights management, ensuring that institutions have processes in place to handle data subject requests. Compliant PaaS providers allow customers to request access to their personal data, opt out of certain processing activities, and have their data deleted upon request. These capabilities are essential for maintaining compliance with privacy laws and fostering trust in digital financial services.

Achieving security excellence in Payments as a Service

Security certifications are critical for banks looking to partner with a PaaS provider to enhance trust, compliance, and fraud prevention in Payments as a Service. PaaS providers that achieve these certifications demonstrate their commitment to securing real-time transactions, reducing fraud risks, and safeguarding customer data.

Modernizing payment security requires partnering with a trusted provider that delivers certified, cloud-native PaaS solutions. Volante enables secure, real-time payments with advanced fraud prevention to ensure staying ahead of security threats. Contact one of our payments experts today to secure your Payments as a Service infrastructure.