PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

AWS Outage May Have Merchants Seeking Backup Elsewhere

By Tom Nawrocki
October 21, 2025
in Analysts Coverage, Merchant
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
banking tech, FICO AI Cloud Solutions

abstract cloud technology system sci fi design concept background. vector illustrater

Amazon Web Services has recovered from an outage that disrupted online activity worldwide for nearly a day, affecting businesses like Venmo and Coinbase to small merchants who rely on AWS for payment processing. After the third shutdown in five years, questions are mounting about how dependent businesses have become on the cloud computing giant.

The outage began shortly after midnight on October 20. The disruption originated at AWS’s largest and most essential data hub in Northern Virginia—the same location that experienced outages in 2020 and 2021. Services were mostly restored by that evening, but the interruption let merchants unable to process payments and disrupted sales for nearly a full day.

Slowly Migrating to AWS

In recent years, merchants, payment service providers, banks, and other companies across the payments supply chain have quietly migrated to AWS as a way to scale their businesses without the fixed costs of building or expanding a physical data center.

“Cloud platforms promise secure, scalable and most importantly redundant data processing,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Pay-as-you-grow data services have also enabled many fintech startups to get traction without having to invest significantly in data facilities. They can focus on the talent that will create the code, not the secure, climate-controlled buildings that will house the machines that run it.”

Seeking Stability Elsewhere

One of the primary selling points of large data centers, such as those operated by AWS, has been their reliability. Without that stability, many smaller companies might seek backup alternatives.

“Redundancy and uptime has always been part of the core value proposition of AWS,” said Apgar. “It will be interesting to see if this event will have a meaningful trend impact on AWS users either rethinking their cloud computing strategy or driving customers over to alternative providers, like Microsoft Azure.”

In the cloud computing market, Azure ranks second in market share behind AWS, but it has been steadily closing the gap. Meanwhile, the CrowdStrike outage in July 2024, which disrupted much of the internet, predominantly affected Microsoft systems.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Amazon Web ServicesAWSCloud ComputingCrowdStrikeMicrosoft Azure

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    [honeypot phone]

    Must Reads

    embedded lending

    Empowering Merchants with Embedded Lending: How ISVs Can Optimize Revenue This Holiday Season

    November 12, 2025
    visa mastercard settlement

    Visa and Mastercard’s Merchant Settlement Could Imperil Rewards Cards

    November 11, 2025
    merchant ai

    Agentic Commerce Faces Many Hurdles Before It Reaches Maturity

    November 10, 2025
    square ai bitcoin

    The Challenge of Monetizing Value in Digital Banking

    November 7, 2025
    AI artificial intelligence gift cards

    Deck the Holograms: How AI Is Redefining Holiday Magic

    November 6, 2025
    digital wallets student loan repayment

    How Digital Wallets Could be the Answer to the Student Loan Repayment Crisis 

    November 5, 2025
    PaaS, Payments as a Service

    Is Your Organization Ready for Payments as a Service?

    November 4, 2025
    agentic commerce disputes

    How FIs Can Prepare for the Surge in Agentic Commerce-Driven Disputes

    November 3, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result