Payment Aggregator vs Payment Gateway?

MARKETING

What is Payment Gateway?

A payment gateway is a payment processing software. Payment gateways only deal with online transactions and are equipped with restricted payment options. Examples of payment gateways include Axis bank, HDFC, Union Bank of India, etc., as in India, most banks act as payment gateways.

What is a Payment Aggregator?

A payment aggregator, also known as a merchant aggregator, is a third-party payment solutions provider that offers merchant onboarding services. With a payment aggregator, merchants can accept multiple modes of payment – something that would otherwise require a great amount of logistical acrobatics.

Under the payment aggregator model, merchants can process transactions through the aggregator’s Merchant Identification Number (MID) . This means, your business doesn’t require a separate merchant account as the payment aggregator takes care of everything while levying a moderate fee.

Innoviti is one of the finest examples of payment aggregators, as it recently received an in-principle permit from the RBI to act as one. It is to be noted that payment aggregators can act as payment gateways, but payment gateways need not offer the wide range of services which payment aggregators do”.

Difference Between Payment Aggregator and Payment Gateway

Let’s look into the simple comparison that will tell you the exact difference. While a payment gateway is an intermediary, the payment aggregator is the interface where the payment gateway processes the transactions. Most payment aggregators own payment gateways to offer a variety of exclusive services to their merchant customers. Check out Innoviti, India’s largest collaborative e-commerce platform, and your trusted payment aggregator. Explore our various products and choose the right one for your business needs now!

Payment Aggregator vs Payment Gateway

While your business needs both payment services to function properly, here are some of the subtle differences between payment aggregator and payment gateway. Check out the given table to get a clear understanding of the differences.

Basis of Distinction	Payment Aggregator	Payment Gateway
Primary Function	Acts as an interface	Acts as intermediary
Scope	Both online/offline transactions	Only online transactions
Multiple Payment Options	Yes	No. limited payment options
Owned By	Generally, ownership lies with fintech companies and financial service providers	Banks, vendors, payment aggregators, etc.
Authorization	Payment Card Industry – Data Security Standard (PCI DSS) certification	RBI authorization under PSSA is required
Examples	Innoviti, Bill Desk, PayUMoney, etc.	HDFC, ICICI, Axis banks, Razorpay etc.
Integrated Solution	Full integration is available here	Relatively less integration compared to aggregators

Conclusion

While there are various differences between payment gateways and payment aggregators, your business will require both services to process payment transactions. It can be overwhelming while choosing the right and best payment approach that benefits your business.

With Innoviti, merchants can sign up for industry grade services. Experience faster online and credit card payment acceptance with minimal fuss and give your customers the seamless and secure shopping experience they deserve now!