woman holding white box

Difference between payment gateway and aggregator

Industry

Sub-systems involved

Project Skills required

Get Inquiry

A payment gateway and aggregator are both systems used in online transactions to facilitate the transfer of funds from a customer to a merchant. However, they serve different roles and have distinct characteristics.

Payment Gateway Aggregator: Key Differences Explained

Payment Gateway

A payment gateway is a technology infrastructure that enables the secure transfer of payment information between a customer, a merchant, and the financial institutions involved in the transaction. It acts as an intermediary between the customer’s payment method (such as a credit card) and the merchant’s bank account.

Key features of a payment gateway include:

  1. Payment processing: A payment gateway processes the payment transaction, securely transmitting the customer’s payment information to the relevant financial institutions for authorization and settlement.
  2. Security: Payment gateways employ various security measures to protect sensitive customer data, such as encryption and tokenization, ensuring the confidentiality and integrity of the payment information.
  3. Integration: Payment gateways provide integration options for merchants to integrate their websites or applications with the gateway’s infrastructure, allowing for seamless payment processing.
  4. Customization: Merchants often have control over the payment experience, including branding and customization options, as the payment gateway can be customized to reflect the merchant’s brand.
  5. Direct merchant relationship: Payment gateways establish a direct contractual relationship between the merchant and the gateway provider, allowing the merchant to have more control over pricing, customer service, and other aspects of the payment process.

 

Payment Aggregator

A payment aggregator, also known as a payment service provider (PSP), is a third-party entity that enables merchants to accept multiple payment methods without directly establishing relationships with individual payment processors or banks. Aggregators simplify the payment integration process for merchants by consolidating various payment options into a single platform.

Key features of a payment aggregator include:

  1. Multiple payment methods: Aggregators support multiple payment methods, such as credit cards, debit cards, digital wallets, and alternative payment methods. They provide a unified interface for merchants to accept these different payment options.
  2. Easy setup: Payment aggregators typically offer quick and easy onboarding for merchants, allowing them to start accepting payments with minimal technical complexity or administrative overhead.
  3. Shared merchant account: Aggregators operate on a shared merchant account model, where multiple merchants are grouped together under a single account managed by the aggregator. This allows smaller or newer businesses to access payment processing services without individually establishing their own merchant accounts.
  4. Simplified payouts: Aggregators handle the distribution of funds to merchants, collecting payments from customers and settling the funds to the respective merchants’ bank accounts. This simplifies the payout process for merchants.
  5. Limited customization: Payment aggregators often provide a standardized payment experience, limiting customization options for merchants. The branding and payment flow may be consistent across different businesses using the aggregator’s services.
  6. Risk management: Aggregators typically manage the risk associated with payment processing, including fraud prevention and chargeback management. They may apply risk assessment measures and set transaction limits to mitigate potential financial risks.

In summary, a payment gateway acts as a secure bridge between the customer, merchant, and financial institutions, processing individual transactions and providing more customization options. On the other hand, a payment aggregator consolidates multiple payment methods under a single platform, simplifying the payment acceptance process for merchants and offering a shared merchant account for faster onboarding.

Artikel yang berkaitan

An Arms Dealer Joins Silicon Valley’s Military Boom

by | Jul 4, 2025 |

For years, Will Somerindyke sold weapons of war around the world: artillery shells to Ukraine, grenades to U.S.-backed rebels in Syria. With relationships with dozens of top military buyers, he quickly turned his company Regulus Global into one of America’s major international arms dealers. Now, as Silicon Valley investors swarm to back multi-billion dollar defense startups with increasing fervor, Somerindyke is looking to make the jump from munitions middleman to manufacturer. He’s been quietly working on Union, a new venture-backed startup he claims will modernize ammunition factories with autonomous robotics and precision machining. “I’ve been through a lot in 18 years in this space,” Somerindyke told Forbes. “If Union does its job correctly, we will be building millions of square feet of facilities with the ability to make a wide range of defense products.” Union, which Somerindyke leads as CEO, appears to have made a solid start. In April it secured a massive $50 million seed funding round led by Bravo Victor Venture Capital, or BVVC. Other investors include Silent Ventures, IronGate, and RKKVC, a Poland-based single-family office. It plans to open its first artillery shell factory in Texas next month. And it recently secured a contract to sell those shells, which, if fulfilled, could bring in up to $225 million, according to Somerindyke. But instead of approaching the problem with old-school manufacturing, Somerindyke and Musselman, who met more than a decade ago through a program for veterans, saw an opportunity to modernize weapons manufacturing, are using Silicon Valley software talent to implement autonomous systems. Since incorporating in October, Union has hired a suite of engineers from Tesla, SpaceX and Anduril....

Elon Musk Has Fired One Of His Top Tesla Lieutenants

by | Jul 4, 2025 |

Elon Musk fired Tesla’s head of operations in North America and Europe, amid declining sales in both regions and the electric vehicle brand’s falling popularity, according to people familiar with the matter. Omead Afshar, who started with Tesla as an engineer in 2017, had become one of Musk’s top lieutenants and was elevated to vice president to oversee business in the two key regions last October. He didn’t respond to a request for comment, nor did Musk or Tesla. Afshar’s removal comes a few days before the end of the second quarter and follows news that Tesla’s EV sales dropped for a fifth consecutive month in Europe. U.S. sales are also down this year and China, the Austin-based company’s top market, saw a 15% drop in May. Equity analysts are anticipating a decline in Tesla’s EV deliveries of at least 10% worldwide in the quarter that ends on June 30, to about 392,800 units compared with 443,956 a year ago. Musk’s close affiliation with and massive financial support for President Donald Trump have negatively impacted the Tesla brand, particularly during his stint running the federal job-slashing DOGE initiative. The company desperately needs to improve its lineup, following the failure of the much-derided Cybertruck to hit volume goals Musk laid out for it, and figure out how to compete with fast-rising Chinese rivals. But rather than add new electric models to boost sales, the world’s wealthiest person has sought to convince investors that the company’s future lies with a new robotaxi service, humanoid robots and AI. It’s a tricky pivot since electric cars, batteries and charging services account for virtually all of...

Get to Know Pop-up shelters different use cases

Get to Know Pop-up shelters different use cases

by | Apr 5, 2024 | ,

Introduction Pop-up shelters, also known as instant shelters or portable shelters, are versatile structures designed for quick assembly and disassembly. Their adaptability makes them invaluable across various industries and situations. Let's explore the different use cases for these convenient shelters. Outdoor Events: Essential Coverage Pop-up shelters are a staple at outdoor events such as festivals, fairs, trade shows, and sporting events. They offer shade and protection from the elements for vendors, performers, and attendees, ensuring comfort and enhancing the event experience. Camping and Outdoor Recreation: Comfort in Nature For camping trips, picnics, and beach outings, pop-up shelters provide temporary sleeping areas, dining spaces, and storage for gear. Their ease of use and portability make them perfect for any outdoor adventure. Emergency and Disaster Relief: Rapid Response In emergencies or natural disasters, pop-up shelters are crucial for providing temporary housing, medical facilities, command centers, and supply distribution points. Their quick deployment helps support affected communities efficiently. Construction and Work Sites: On-Site Solutions At construction and work sites, pop-up shelters serve as temporary offices, break areas, tool storage, and restrooms. They protect workers from sun, rain, and other environmental factors, enhancing workplace safety and comfort. Exhibitions and Trade Shows: Showcasing Excellence Pop-up shelters are popular at exhibitions, trade shows, and product demonstrations. They provide a convenient space for showcasing products, engaging with customers, and conducting business in a professional setting. Mobile Businesses and Food Stalls: Ready to Serve For mobile businesses like food stalls, market vendors, and pop-up shops, these shelters offer a quick and cost-effective solution for setting up temporary locations, attracting customers, and driving sales. Medical and Healthcare Services:...

Innovative Acoustic Pod Uses: Beyond Traditional Offices

Innovative Acoustic Pod Uses: Beyond Traditional Offices

by | Apr 5, 2024 |

Acoustic pod are not only limited to traditional office settings but can also be creatively utilized in various other scenarios. Here are some different creative use cases for acoustic pods: Libraries and Learning Spaces Acoustic pods can be incorporated into libraries or educational institutions to create private study areas or small learning pods. These pods offer a quiet and focused environment for students or individuals who require a peaceful space for reading, studying, or conducting research. Recording Studios Acoustic pods can be transformed into mini recording studios. The soundproofing properties of the pods ensure optimal audio quality by minimizing external noise and echoes. Musicians, podcasters, voice-over artists, and content creators can utilize these pods to record their work, enhancing the overall sound production. Wellness and Meditation Rooms Acoustic pods provide an ideal space for relaxation, mindfulness, and meditation. They can be set up in wellness centers, spas, or even in corporate environments to create a tranquil space where individuals can escape the noise and busyness of daily life and focus on their well-being. Phone Booths Acoustic pods can serve as private phone booths in public spaces such as airports, shopping malls, or coworking spaces. These booths offer a quiet area for individuals to make phone calls without disturbing others nearby. The soundproofing ensures that conversations remain confidential, and the controlled acoustic environment provides better call quality. Exhibition Spaces Acoustic pods can be used as immersive exhibition spaces. By incorporating multimedia capabilities such as audiovisual equipment, interactive displays, and comfortable seating, these pods can create engaging and intimate experiences for visitors. They can be utilized for showcasing art installations, virtual...

en_USEnglish
id_IDBahasa Indonesia en_USEnglish