A virtualized transaction terminal platform is provided. A transaction terminal is configured as a thin-client terminal. A virtualized transaction terminal (Virtual Machine (VM)) is instantiated remotely on a cloud or a server over a network connection. Peripherals connected to the thin-client terminal are mapped to virtual peripheral device drivers on the cloud or the server. Physical peripherals connected to the thin-client terminal are mapped inside the VM to the corresponding virtual peripheral device drivers. As transactions are initiated and physical peripherals are operated at the thin-client terminal, the transactions are processed by the VM and inputs/outputs from the physical peripherals are forwarded for processing by the corresponding virtual peripheral device drivers. A remote desktop (RD) agent on the thin-client terminal keeps states of the VM and virtual peripheral device drivers in synchronization with a peripheral display of the thin-client terminal.