Payment Aggregator vs Payment Gateway?

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.

ScopeBoth online/offline transactionsOnly online transactions
Basis of DistinctionPayment AggregatorPayment Gateway
Primary FunctionActs as an interfaceActs as intermediary
Multiple Payment OptionsYesNo. limited payment options
Owned ByGenerally, ownership lies with fintech companies and financial service providersBanks, vendors, payment aggregators, etc.
AuthorizationPayment Card Industry – Data Security Standard (PCI DSS) certificationRBI authorization under PSSA is required
ExamplesInnoviti, Bill Desk, PayUMoney, etc.HDFC, ICICI, Axis banks, Razorpay etc.
Integrated SolutionFull integration is available hereRelatively less integration compared to aggregators


Ans. Of the many advantages, minimal paperwork, easy application process, speedy approvals, instant payment acceptance, no complicated fee structure, are some that compel merchants to seek out dedicated merchant aggregators.

Ans. There are three types of payment gateways such as

  • Hosted Payment Gateways
  • Self-Hosted or Pro-Hosted Payment Gateways
  • API Hosted Payment Gateways

Before choosing the right payment gateway based on your business requirements, consider various factors such as security, compliances, data analytics, integration level, and more, before arriving at a suitable one for increased business growth and happy customers.

Ans. According to TOI, the top and best payment gateways in India include Innoviti, Razorpay, Instamojo, Paypal, Paytm, and Cashfree.

For offering the payment gateway processing services, your service provider charges a fee. The different components of payment gateway charges comprise initial setup charges, yearly maintenance charges, MDR, integration charges for your online website and gateway integration, etc.


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!