What is SFTP?

SFTP, or Secure File Transfer Protocol, is a secure method of transferring files between computers over a network. Unlike traditional FTP (File Transfer Protocol), which sends data in plain text, SFTP uses SSH (Secure Shell) encryption to protect files, credentials, and commands from being intercepted. This makes it a preferred choice for businesses and IT teams that need to move sensitive data, such as financial records, medical information, or proprietary files, across systems or to the cloud.

With SFTP, organizations benefit from enhanced security, authentication, and reliability when automating workflows or sharing large files. It’s widely supported by servers, cloud platforms, and managed file transfer solutions, making it a cornerstone technology for secure data exchange.

What is the Difference Between FTP and SFTP?

Enterprises and large organizations choose SFTP over FTP because it provides the security and reliability needed for modern file sharing. While File Transfer Protocol sends files, usernames, and passwords in plain text, SFTP encrypts both the login details and the files during transfer.

This protects sensitive information such as financial records, customer data, and business documents from interception and unauthorized access. For companies that must meet strict compliance requirements and handle large volumes of data, Secure File Transfer Protocol offers a trusted and secure solution for sharing files at scale.

Why Use Files.com with SFTP?

Files.com is a cloud-native file transfer platform with full support for the SSH File Transfer Protocol. Acting as a complete SFTP server, your Files.com site allows inbound connections from users, partners, applications, and systems, while also supporting outbound connections to other SFTP servers. This native integration makes it easy to seamlessly connect Files.com with any SFTP server or client using port 22 and SSH version 2.0.

In addition, Files.com provides powerful access controls, permissions, and platform capabilities to automate, manage, and monitor file transfers at scale - enhancing security, visibility, and reliability across all your SFTP workflows.

Workflow Enhancements and Integration Features

Enhance, secure, and expand your business processes by connecting other SFTP server content with Files.com workflow features such as Inboxes, Share Links, GPG, Automations, more file transfer protocol options (FTP, AS2, WebDAV, etc.), authentication and authorization (Single-Sign-On, Active Directory, LDAP, SAML, etc.), online co-editing, iPaaS integrations, and a rich selection of notification options (webhooks, Slack, Amazon SNS.)

Enterprise-Grade SFTP for Regulated Industries

When it comes to managing large volumes of financial data and sensitive customer information, shared daily with regulators, payment networks, and partner institutions, file transfer workflows need to be secure, compliant, and reliable. One of the most practical and widely adopted solutions? Transferring files via SFTP.

Enterprise Use Case: Compliant and Secure File Transfers for Banking and Finance

SFTP is a cornerstone of secure data exchange in industries where compliance is non-negotiable. Using SSH encryption, it protects files, credentials, and commands in transit, making it the protocol of choice for organizations handling sensitive information.

In banking and financial services, institutions exchange massive volumes of data daily - customer account information, loan applications, wire transfers, and regulatory reports. These workflows must remain both secure and compliant with strict industry standards.

With Files.com’s built-in SFTP capabilities, banks and financial institutions can:

• Securely exchange files with regulators, payment networks, and partner institutions using SFTP, which encrypts both authentication and data in transit.
• Maintain compliance with regulations such as GLBA, SOX, PCI DSS, and FINRA by leveraging Files.com’s audit logs, granular access controls, and data governance features.
• Automate critical workflows like daily transaction reports, settlement files, or customer statement distribution with inbound and outbound SFTP connections to core banking systems and third-party processors.
• Centralize oversight with monitoring, permissions, and detailed reporting, ensuring visibility into every file transfer across the institution.

By combining the security of SSH-based SFTP with the advanced management capabilities of Files.com, financial institutions can streamline operations, reduce manual risks, and protect sensitive data at scale - all while staying compliant with regulatory mandates.

For example, a global bank might use SFTP to automatically send end-of-day transaction files to a clearinghouse or securely share customer account data with a payment processor. These workflows require not only encryption but also automation, reliability, and full auditability to meet regulatory demands.

This is where Files.com makes the difference. Your Files.com site can act as a complete SFTP server for inbound connections while also connecting outbound to other SFTP systems. Beyond the protocol itself, Files.com adds enterprise-grade features such as granular access controls, automation, monitoring, and compliance-ready audit logs.

SFTP for Regulated Industries

Sensitive data moves constantly across regulated industries like banking, healthcare, and financial services - and every transfer must meet strict compliance and security standards. Secure File Transfer Protocol provides the encryption and reliability these organizations need to share information safely across internal systems, partners, and regulators. With Files.com, enterprises can extend those protections even further, gaining automation, centralized control, and full visibility into every transfer. The result is a secure, compliant, and scalable foundation for exchanging mission-critical data.

An Enterprise SFTP Solution Built for Compliancy

Files.com delivers a complete enterprise SFTP solution designed for organizations that can’t afford to compromise on security or compliance. In banking and finance, Files.com enables secure delivery of transaction files, statements, and reports to regulators and payment networks. In healthcare, it ensures protected health information remains encrypted during every exchange, helping organizations maintain HIPAA compliance. With built-in automation, audit logging, and granular permissions, Files.com gives regulated enterprises confidence that every file transfer, whether inbound or outbound, is encrypted, traceable, and policy-compliant.

How to Use Secure File Transfer Protocol to Upload Files

Uploading files with Secure File Transfer Protocol is one of the most reliable ways to move data between systems securely. Unlike older file transfer methods, Secure File Transfer Protocol uses encrypted connections to protect your files, credentials, and commands during every upload.

To get started, you first connect to an SFTP server using your login credentials or SSH key authentication. Most enterprise environments and cloud platforms, including Files.com, use port 22 and SSH encryption to establish a secure channel. Once connected, you can easily upload files or folders from your local system to a remote directory on the server.

Secure file uploads can be performed manually using an SFTP client or automated through scheduled workflows and scripts, ensuring consistency and reducing manual effort.

Flexible SFTP Integration Options with Files.com

With Files.com, you get more than just an SFTP connection - you get a platform that adapts to the way your business works. Whether you need to connect internal systems, external partners, or legacy infrastructure, Files.com makes it simple to bring everything together securely.

• Inbound SFTP Connections: Allow your users and partners to connect directly to Files.com via SFTP. Once inside, they can securely access any part of your account - including folders synced with third-party services like Dropbox, Box, or Amazon S3.
• External SFTP Mounts: Treat an external SFTP server as if it were part of Files.com. Mount it and instantly make its contents available through the Files.com web interface, APIs, SDKs, or even other inbound SFTP connections.
• Scheduled SFTP Syncs: Keep everything in sync, automatically. Push, pull, or two-way synchronize files between Files.com and any external SFTP server on a schedule that works for you, eliminating manual transfers and reducing risk.

By supporting all three integration types, Files.com ensures your SFTP workflows are not only secure but also streamlined, automated, and accessible across your entire organization.

Ready to Maximize Your SFTP Protocols with Files.com?

The Files.com platform focuses on providing the means for any type of file transfer with scalability and efficiency. Ready to get started today? Try a free 7-day trial with full access to the entire Files.com platform, including all integrations, automations, protocols, and APIs.

Files.com's integration for SFTP is a core integration of Files.com, maintained by the Files.com team, and is fully supported as part of your Files.com subscription. Any Files.com customer on the Power plan and up can use outbound SFTP as part of your existing subscription.

Want to learn more about your integrating your SFTP workflows with Files.com? We’ve got the following with everything you need to know:

• SFTP Outbound Setup Instructions
• Setting up SSH Keypairs for Password-less Authentication
• Legacy Ciphers Information