Gartner predicts that 90 percent of global enterprises will be using a CPaaS platform by 2028.
That’s a massive jump from just 50 percent in 2023.
Many enterprise-wide trends are facilitating that growth. The rise of new network APIs to the use of CPaaS as an infrastructure for AI agents are excellent examples.
But let’s not look too far ahead. First, it’s critical to define what exactly “CPaaS” means.
What Is CPaaS? A Simple CPaaS Definition
CPaaS stands for “Communications Platform as a Service”.
CPaaS platforms are cloud-based toolkits that allow developers to inject communications into business workflows.
As such, they house an array of APIs, SDKs, documentation, and – often – no-code/low-code visual builders.
On a broad scale, CPaaS platforms usually include three core layers:
- An Integration Layer: Connects the communications channels to various business systems, applications, or data sources.
- A Business Logic Layer: Allows organizations to define rules, workflows, and triggers that determine how and when messages or calls are sent and received.
- A Communications Layer: Powers interactions across channels such as voice, SMS, email, chat, and social messaging platforms.
In the customer experience space, brands often integrate CPaaS platforms with their contact center software, unified communication tools, and customer apps.
Beyond that, CPaaS gives companies the power to enhance security and compliance – through use cases like multi-factor authentication – and reimagine customer journeys.
The Purpose of CPaaS Solutions
According to Gartner, the role of CPaaS is to empower enterprises to build modern communication workflows without the complexity of building each feature from scratch.
Solutions often support voice calling (both inbound and outbound), text messaging, email, and security features, such as two-factor or multi-factor authentication.
Many also extend capabilities to popular messaging channels like WhatsApp, Viber, or Apple Messages for Business.
Additionally, CPaaS streamlines real-time, contextual interactions. For example, an organization might embed a video calling feature within a mobile application. Another might launch automated text notifications for appointment confirmations.
Such workflows rely on CPaaS APIs that offer a high degree of control over how communications move through a business. The result is a flexible, scalable approach that reduces the time to market for new communication innovations.
Use Cases for CPaaS: Industry-Specific Examples
CPaaS solutions are rapidly gaining attention across sectors, offering companies an intuitive way to streamline and augment customer experiences.
Demand for this technology is growing as vendors experiment with generative AI solutions, heightened interoperability, and unique channel mixes, all while enhancing UIs to make platforms more accessible.
Below are some of the most widely-utilized, industry-specific CPaaS use cases.
Financial Services
The financial services (FinServ) industry is quickly emerging as a strong market for CPaaS.
Why? Because FinServ companies need secure communications, seamless messaging to voice transitions, and flexible growth. CPaaS addresses these needs.
Many banks and financial companies are already using CPaaS to deliver real-time alerts, transaction confirmations, and fraud prevention notifications.
Others use CPaaS to enable two-way communication with a higher level of security.
Plus, CPaaS allows established financial enterprises with legacy on-premises systems to modernize quickly.
CPaaS solutions can help businesses leverage AI tools, minimize the risks of digital transformation, and reduce operating costs.
Retail and eCommerce
Retailers and eCommerce brands use CPaaS to build fluid omnichannel customer journeys.
Today, many companies – like Walgreens – leverage messaging apps to help mobilize the shopping experience while unlocking a higher level of “personalization” for customers.
Businesses can connect social messaging apps directly with their product catalogs, allowing customers to browse and purchase within the same channel. They can use AI tools and chatbots to deliver automated support and personalized product recommendations to customers on the move.
Channels like WhatsApp and RCS are particularly useful for tailored promotional campaigns, allowing retailers to share multi-media messages that highlight product pictures or videos, increasing conversion rates.
Healthcare
Reliable real-time communication is crucial in healthcare. Countless organizations rely on intuitive communication systems for emergency response, collaboration, consultations, and more.
CPaaS platforms give healthcare companies the tools they need to integrate numerous channels, from video (for telemedicine appointments) to messaging, into their systems.
Many clinical providers now also use CPaaS to send appointment reminders, medication prompts, and prescription details to patients.
Integrating CPaaS into EHRs (Electronic Health Records) also means clinics can maintain updated information and even use triggers to push notifications to patients when test results are ready or patients need appointments.
CPaaS also allows for secure, compliant communication, helping to ensure sensitive patient information is protected according to the regulations of the industry.
Travel and Hospitality
So, what is CPaaS doing for the travel and hospitality sector? Just like in many other industries, the technology is helping companies enhance real-time communication and deliver intuitive customer service.
Travel agencies, hotels, and airlines use real-time updates to handle large volumes of itineraries, reservations, and unexpected schedule changes.
CPaaS platforms enable automated notifications about flight delays or gate changes, making it easier for customers to stay informed.
Hotels and resorts also use CPaaS to send booking confirmations, manage check-in processes, and streamline customer support.
Moreover, employees can manage routine requests through chatbots or interactive voice response (IVR) systems, escalating only urgent or unusual concerns to live agents and boosting efficiency.
Food and Beverage
CPaaS leaders are quickly discovering new opportunities with CPaaS in the food and beverage industry, particularly thanks to the rising demand for AI.
Intelligent assistants can help guide customers toward recipes and menu items that suit their specific needs.
A CPaaS-driven chatbot can suggest replacements for out-of-stock items for customers, reducing friction at checkout. It can also link seamlessly to mobile payment APIs, providing real-time order tracking and follow-up insights.
CPaaS also empowers food and beverage companies to automate order confirmations, delivery updates, and reservation reminders, keeping customers informed.
What Is CPaaS? The Vendors to Watch
CPaaS providers are quickly discovering new ways to differentiate their offerings. The top CPaaS providers are experimenting with everything from “ready-to-launch” AI solutions to integrated omnichannel and network APIs.
Here are some of the top CPaaS vendors to watch out for.
1. Infobip
Infobip is a leading CPaaS vendor known for its rapid-fire innovation.
Its platform covers a broad range of communication channels, including RCS, SMS, and chat apps.
Infobip is even experimenting with AI and network APIs.
Plus, its headless SaaS portfolio, based on microservices, allows for flexible scaling across industries.
2. Vonage
What is CPaaS without Vonage? A pioneer in merging CPaaS with enterprise communications platforms, Vonage has constantly expanded its footprint in CPaaS, ever since its acquisition of Nexmo.
Vonage’s rich collection of tools and strong presence in the developer community give it an edge, alongside the telco connections of its parent company: Ericsson.
3. Twilio
Twilio remains synonymous with the term “CPaaS” for many businesses.
The company that founded this software category continues to innovate, focusing heavily on channel partnerships and solutions that address real-world problems (like advanced security APIs).
As it refines its CPaaS strategy, Twilio is – as of March 2025 – once again achieving double-digit growth after a period of revenue stagnation.
4. Cisco Webex
Cisco branched into the CPaaS arena with the 2021 acquisition of IMImobile.
Now, Cisco’s “Webex Connect” solution offers a deep array of solutions, including the Webex AI Agent studio, designed to simplify building intelligent workflows.
Plus, Cisco offers a platform that combines security, high reliability, and customization – everything modern teams are looking for from a CPaaS vendor.
5. Sinch
Sinch is another company commonly associated with the CPaaS market. It serves both enterprises and telcos with a portfolio that covers SMS, voice, email, and verification APIs.
Today, Sinch offers a robust ecosystem with 500 pre-built integrations for third-party vendors.
Additionally, the company is focusing heavily on AI advancements (such as NLP in more than 100 languages).
6. BICS
Part of the Proximus group, BICS initially concentrated on the carrier space.
Over the years, the company acquired various companies, such as TeleSign, expanding its CPaaS footprint.
Its global footprint stands out, particularly in emerging markets.
By unifying various business segments, BICS aims to offer programmable communications, security, and identity solutions on a global scale.
7. Tata Communications
Tata Communications offers CPaaS under the umbrella of a global telecom and technology provider.
Its acquisition of Kaleyra in 2023 expanded its CPaaS capabilities for large enterprises.
Tata’s DIGO suite covers voice, messaging, and AI-driven tools.
Plus, network APIs are a top priority, enabling features such as age verification and SIM swap prevention.
CPaaS & The Future of Communications
So, what is CPaaS? For many organizations, it marks the future of enterprise communications.
As digital transformation accelerates, more organizations will seek flexible platforms that allow them to adapt quickly to new trends in customer engagement.
CPaaS will continue to integrate with enterprise systems and AI, empowering companies to create more personalized and intelligent interactions across channels.
Major providers in the CPaaS market all share an emphasis on continual innovation.
Infobip has developed modular architectures and advanced rich messaging. Vonage has harnessed its long-standing integration of UC, CCaaS, and CPaaS. Twilio remains focused on developer-first innovation. Cisco Webex has turned its networking and security pedigree toward creating secure, scalable communication workflows.
Overall, CPaaS helps enterprises modernize customer experiences without heavy infrastructure investments.
Teams can roll out new features at speed, test new channels, and harness AI-driven capabilities in real time.
Today, CPaaS is well on its way to becoming a must-have element in the software stacks of businesses around the world.
