As more and more businesses move online, the need for a secure payment gateway is becoming increasingly important. But with so many options available, such as Payment Gateway and Payment Aggregator, it can be difficult for businesses to choose the right solution for their needs.
Each comes with its own unique advantages and disadvantages, meaning that the decision of which one is best ultimately depends on your individual needs.
If you’re looking to set up an online payment system quickly and securely, it’s important to understand the differences between Payment Gateways and Payment Aggregators. We’ll compare each one’s features here in order to help you decide which option works best for you.
What is Payment Gateway?
Payment Gateways are a great choice for businesses that need to set up an online payment system quickly and securely. These gateways provide businesses with a secure, reliable platform to process payments without having to build their own infrastructure. They also offer features such as fraud protection, data encryption, and customer support.
Ultimately, Payment Gateway is a transaction processing technology that work as a mediator between the merchant and the customer. With its PCI-DSS compliance standard, the main jobs of any payment gateway are authorisation, capture and settlement.
Cashfree, PayU,and Instamojo are some of the reliable payment gateways.
How Does A Payment Gateway Works?
A payment gateway is a technology that facilitates the transfer of information between a payment portal (such as a website, mobile app) and the front end processor or acquiring bank.
- When a customer places an order and submits payment information, the payment gateway securely encrypts the data and sends it to the acquiring bank for authorization.
- The bank then communicates the result (approval/decline) back to the payment gateway, which in turn returns the result to the website to complete the transaction.
- The payment gateway acts as a secure intermediary between the customer and the merchant, helping to protect sensitive information such as credit card numbers.
Benefits of Using Payment Gateways
Security:
Payment gateways use encryption and secure connections to protect sensitive information, reducing the risk of fraud and data breaches.
Convenience:
Payment gateways allow customers to make purchases quickly and easily, without having to leave the website or manually enter their payment information.
Global Reach:
Payment gateways allow merchants to accept payments from customers all over the world, providing a more convenient and accessible way to do business globally.
Increased Sales:
By providing a secure and convenient way to make purchases, payment gateways can help to increase sales for merchants.
Automated Processing:
Payment gateways automate the process of processing payments, reducing the manual workload and errors associated with manual processing.
Reporting and Analytics:
Payment gateways provide merchants with detailed reporting and analytics, allowing them to track and understand their payment processing activities.
What is Payment Aggregator?
Payment aggregators are a revolutionary way to manage payments for businesses of all sizes. By condensing the management of all electronic payments into a single online portal, payment aggregators allow businesses to quickly and easily accept payments.
Businesses are not required to create multiple accounts with every bank, card provider, unified payments interface (UPI) and payment type. This is a simple, efficient and cost-effective way to accept and manage payments that can be set up in minutes.
PayTM, Google Pay and Amazon Pay are some of the prominent payment aggregators in the market that gives the flexibility of receiving payments via online money transfers and PSPs without individual merchant accounts with them.
How Does A Payment Aggregator works?
A payment aggregator is a service that simplifies the process of accepting payments from customers. It replaces the need for merchants to negotiate terms with multiple payment processors and gateways.
Payment Aggregator offers a complete suite of payment options without the complexity of managing each one individually. The aggregator does the work of building relationships and negotiating contracts with payment processors, so merchants can focus on their core business.
The payment aggregator acts as an intermediary between the merchant and the customer’s financial institution. The entire process is completed quickly and securely, allowing merchants to provide their customers with a seamless checkout experience.
Why Do I Need A Payment Aggregator?
As a merchant, having a payment aggregator can be extremely beneficial for your business. A payment aggregator allows you to accept all modes of online and credit card payments with minimal effort and in a short span of time. This eliminates the need to set up individual online payment processes, as the payment aggregator platform handles all of this for you. Furthermore, it also holds consumer card details to allow for faster purchases or hold money in an account to allow for future purchases.
Benefits of Choosing Payment Aggregator
Payment aggregators provide several benefits to merchants that make it a preferred method of accepting payments. These benefits include:
1. Convenience:
A payment aggregator allows merchants to accept payments from multiple payment providers through a single point of integration. It simplifies the process for merchants and makes it easier for them to manage.
2. Reduced Costs:
By using a payment aggregator, merchants can avoid the costs associated with setting up. It also eases maintaining multiple relationships with payment providers. This can include costs such as monthly fees, transaction fees, and setup costs.
3. Increased Security:
Payment aggregators provide fraud detection and other security services to help protect merchants and their customers. They are protect from fraud and other types of security threats with their enhanced security features. This can include things like PCI compliance and encryption of sensitive data.
4. Flexibility:
Payment aggregators can provide merchants with a wide range of payment options. As a merchant, you can avail credit card payments, electronic funds transfers (EFTs), and other types of payments. This allows merchants to accept payments from a variety of customers, regardless of their preferred method of payment.
5. Scalability:
As a business grows, so does the number of transactions. A Payment aggregator can easily handle the scale of transactions and provide the necessary infrastructure for the same.
6. Technical Support:
Payment aggregators provide technical support for merchants, which can include things like integration assistance, troubleshooting, and training. This can help merchants to quickly and easily integrate the payment aggregator into their existing systems and processes.
7. Better Data Insights:
Payment aggregators provide merchants with detailed transaction data and analytics that can be used to track sales, monitor customer behavior, and optimize their businesses.
8. Automation:
Many payment aggregators offer automation features such as recurring payments, subscriptions, and subscriptions management, which can help to streamline and automate the payment process for merchants.
Overall, payment aggregators provide merchants with a convenient, secure, and cost-effective way to accept payments from multiple sources, which can help to improve their bottom line and make it easier for them to manage their business.
Payment Gateways Vs Payment Aggregator – Which One is Better?
A payment aggregator and a payment gateway are both types of payment processing services that allow merchants to accept payments from customers. However, they work in slightly different ways and have some key differences.
A payment gateway is a service that connects a merchant’s website or application with a payment processor. It is responsible for encrypting sensitive information, such as credit card numbers, and transmitting it to the payment processor for authorization and settlement. Payment gateways also provide fraud detection and prevention services to help protect merchants from fraud.
On the other hand, A Payment Aggregator acts as an intermediary between the merchant and multiple payment providers. It allows merchants to accept payments from multiple sources (credit cards, e-checks, etc.) through a single point of integration, simplifying the process for merchants. Payment aggregators also handle the processing and settlement of payments, as well as provide fraud detection and other security services.
So, which one is better? It depends on the specific needs of your business.
If your business only needs to accept payments through one or two payment methods, such as credit cards, then a payment gateway may be the better option. It will allow you to directly connect with a payment processor and may offer lower transaction fees.
On the other hand, if your business needs to accept payments from multiple sources and needs to manage multiple payment providers, a payment aggregator may be the better option. It will simplify the process for you and provide more flexibility for your customers to pay. It also may offer added benefits such as multi-currency support and recurring payments.
Ultimately, it’s important to evaluate the specific needs of your business and compare the features and costs of each option before choosing a payment processing service. It’s also important to consider the scalability of the solution, as your business may grow and your needs may change over time.
Can a payment aggregator work as a payment gateway?
Yes, a payment aggregator can work as a payment gateway. Payment aggregators are able to process payments from multiple sources. They provide the same services as a payment gateway,like fraud detection and prevention, sensitive information encryption, and settlement of payments. However, they also offer additional features such as multi-currency support and recurring payments. These features may not be available with a traditional payment gateway.
Conclusion
Payment aggregators are a great option for businesses that need to accept payments from multiple sources. One of their greatest advantage is their ability to manage multiple payment providers. Also, They offer additional features such as multi-currency support and recurring payments, along with services as a payment gateway, such as fraud detection and prevention.
However, as there are multiple aggregators in the payment ecosystem, collaborating with each payment aggregator can be a nuisance for a business.
Payomatix is a promising solution, helping businesses to scale their operations according to their needs. With Payomatix, businesses can receive payments from multiple payment aggregators and payment gateways using a single unified API.
Businesses can now focus on growing their business rather than worrying about managing multiple payment accounts.
