If you’ve been in the software development business for a while, you may remember when payment integration was a new thing. In the beginning, flat file transfers and direct database access were trailblazing technologies. Then came on-premise ETL tools, proprietary SDKs, SOAP APIs, and batch file-based APIs. Each had their time in the spotlight, taking the lead as new technologies arrived and new use cases emerged. Still to this day, many of these legacy payment integration types remain commonplace in niche industries.
Originally used for card-not-present (CNP) payment integration, cloud APIs stepped onto the stage in the 2010s, taking the place of MOTO, software-based gateways, and flat file uploads for digital sales applications. With their real-time processing, unlimited scale, better UX, and easier compliance, cloud APIs have quickly become the new default for ecommerce platforms, digital invoicing tools, subscription billing, and more.
But for card-present payment integration, cloud APIs are a newer kid on the block. Cloud-connected smart terminals that rely on cloud APIs plus local SDK or secure tunnel integration allow for all the benefits of CNP payments while efficiently and securely managing card-present scenarios.
If you’re not already using cloud APIs for card-present payment integration, it’s time to give them a look. In this article, we’ll explore the key reasons cloud APIs are gaining momentum over SDK-based integrations. We’ll examine how ISVs are navigating complexity, reducing technical debt, and accelerating time to market with cloud-first solutions—and why that matters now more than ever.
Starting in the 1990s, Software Development Kits (SDKs) were used to control hardware like card readers and receipt printers, requiring local installs and complex configurations but enabling basic integrations between POS systems and payment terminals. Then in the 2010s, SDKs started providing interfaces to payment middleware. POS software would call the SDK, which then communicated with the terminal or gateway. SDKs also began offering encrypted transactions, tokenization, and batch management—all significant developments for card-present transactions.
Middleware SDKs for semi-integrated payment systems are still fairly common today, especially in certain verticals such as retail, restaurant, franchise operations, and more.
If your software still relies on this type of integration for card-present payments, now is a good time to take a hard look its limitations. While SDKs do provide deep control over payment flows and hardware, this control comes at a significant cost:
In short, while SDK integrations are suitable for niche cases like offline processing, they are no longer optimal for most card-present software applications.
Let’s take a look at the many benefits of transitioning to cloud APIs.
Today, cloud-connected payment systems that handle card-present transactions and data processing via internet-based APIs and smart terminals rather than software local to a POS device or server are becoming the gold standard.
With this method, payment requests are sent to the cloud, not processed directly on the device. The smart terminals that accept the credit cards, debit cards, and digital wallets can run apps, connect directly to the cloud, and do more than just process payments.
For ISVs, the benefits of this more modern approach to card-present payments are myriad:
Note that SDKs are still an integral part of the modern cloud API setup, but they’re now used to bridge cloud APIs and smart terminals. Today’s client SDKs, reader SDKs, and POS SDKs are lightweight, modular, and updated via the cloud. Together with cloud-native APIs, these newer SDKs comprise the new gold standard for card-present payments integration.
When you’re evaluating cloud APIs for card-present payments, we encourage you to focus on reliability, flexibility, compliance, and future-proofing. The goal is to enable seamless in-person transactions without the headaches of legacy infrastructure.
Simple, Modern Integration—RESTful architecture with clean, well-documented APIs and lightweight SDKs for rapid deployment. Payroc Cloud enables code-light integration.
Reliability—Uptime matters. Payroc Cloud offers error-resilient infrastructure with 99.999+% uptime.
Device Compatibility—Support for smart terminals and the ability to easily pair devices with POS or kiosk systems. Payroc Cloud provides near-instant access to dozens of precertified devices and features.
Security and Compliance—End-to-end protections ensuring card data is encrypted and tokenized before it ever reaches your software. Payroc Cloud delivers scope-reducing tech that lifts your PCI compliance burden.
Remote Management and Monitoring—APIs to update software, configure terminals, and monitor device health as well as tools to remotely push branding, pricing, or UI changes. Payroc Cloud offers the full range of automatic updates and device certifications.
Omnicommerce Tokenization—Unified tokens that work across both card-present and card-not-present transactions. Payroc Cloud integrates both through one unified interface.
Fast and Reliable Terminal Communication—Cloud-triggered prompts with low-latency device responses. Payroc Cloud’s always-on connection provides smooth customer experiences, without delays or awkward pauses.
Transparent Reporting—Real-time or batch reporting APIs, and settlement and reconciliation data integration. Payroc Cloud’s built-in reporting options let you easily configure the reporting you and your merchants prefer.
Scalable Pricing and Revenue Sharing—Tiered pricing models based on volume or merchant type. Clear rev-share frameworks, ideally with automated reporting. Payroc Cloud puts you in a position to win always.
The bottom line is that with the right cloud API for card-present integrated payments, you can reduce integration complexity and support costs, focus on growing your business—not managing hardware, and offer a better, more consistent user experience across locations.
Whether your software demands the deep control of legacy SDKs or the streamlined power of cloud APIs plus lightweight SDKs, it’s essential to choose a partner who can meet your current and future needs.
Cloud APIs like Payroc Cloud are helping ISVs move faster, serve more users, and reduce risk—without sacrificing quality. Ready to future-proof your payments integration? Learn how Payroc Cloud can help you move faster and grow smarter.