Payment terminal cloud is a new idea in the field of merchant services. It is made possibly by the development of non-blocking input/out (NIO) technology. A payment terminal cloud consists of multiple, potentially thousands, of payment terminals all connected to one server.
With most conventional payment terminals, both non-embedded and embedded, POS applications and payment terminals had to be able to communicate directly. With NIO technology, it is now possible for payment terminals to function more like a chat room, with no direct communication required. NIO allows a POS system to connect to a server along with multiple terminals and send messages to any of the connected terminals.
Payment terminal clouds have two distinct advantages over more traditional payment technologies. First, with no direct communication between terminal and POS system, PCI issues are not an issue. Second, data for card present and card not present transactions flow in one stream, as there is no difference in communication between the two types of transactions.