{"id":34972,"date":"2021-08-27T12:15:14","date_gmt":"2021-08-27T06:45:14","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=34972"},"modified":"2025-02-28T17:45:07","modified_gmt":"2025-02-28T12:15:07","slug":"payment-aggregator-and-payment-gateway","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/","title":{"rendered":"Payment Aggregator and Payment Gateway: Underlining Key Differences"},"content":{"rendered":"\n<p class=\"has-drop-cap\">If you are on the verge of launching a new online business, you must probably be grappling in setting up the best payment transaction modes. Payment aggregators and <a href=\"https:\/\/corpbiz.io\/payment-gateway-license\" title=\"Payment Gateway License\"><strong>payment gateways<\/strong><\/a> are the two terms that are widely used in the online business landscape. Although they sound intrinsically similar, they differ on several grounds that we will reveal in this article. This write-up packs all the detail pertaining to Payment Aggregator and Payment Gateway.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/#What_is_the_Payment_Gateway\" >What is the Payment Gateway?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/#What_is_the_role_of_the_Payment_Aggregator\" >What is the role of the Payment Aggregator?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/#Key_Differences_between_Payment_Aggregator_and_Payment_Gateway\" >Key Differences between Payment Aggregator and Payment\nGateway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/#Frequently_Asked_Questions_regarding_the_Payment_Aggregator_and_Payment_Gateway\" >Frequently Asked Questions regarding the Payment\nAggregator and Payment Gateway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/payment-aggregator-and-payment-gateway\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Payment_Gateway\"><\/span>What is the Payment Gateway?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In general, the term \u201cpayment gateway\u201d refers to a software service that enables web-based businesses to process payment transactions on their portal. They enable payment acceptance via several modes, including net banking, debit\/credit cards, e-wallet and Unified Payment Interface, aka (UPI).<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/rbi-issues-new-guidelines-for-payment-aggregators\/\">RBI Issues New Guidelines for Payment Aggregators <\/a><\/mark><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Key Takeaways regarding Payment Gateway<\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Key-Takeaways-regarding-Payment-Gateway.png\" alt=\"Key Takeaways regarding Payment Gateway\" class=\"wp-image-34996\" width=\"513\" height=\"455\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Key-Takeaways-regarding-Payment-Gateway.png 998w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Key-Takeaways-regarding-Payment-Gateway-300x266.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/08\/Key-Takeaways-regarding-Payment-Gateway-768x681.png 768w\" sizes=\"(max-width: 513px) 100vw, 513px\" \/><\/figure><\/div>\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_role_of_the_Payment_Aggregator\"><\/span>What is the role of the Payment Aggregator?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A payment aggregator also referred as merchant aggregator, is a\nservice provider that aggregate &amp; facilitate payment acceptance services to\nthe merchant. One primary difference between an aggregator and a gateway is\nthat the latter is predominately used in the online business regime; meanwhile,\nthe former digitizes online &amp;\/or offline payment touchpoints.<\/p>\n\n\n\n<p>A payment aggregator provides end-users with any transaction,\nincluding digital payment modes &amp; recording of cash and cheque or offline\ntouchpoints (at billing store, kiosk, anywhere in-store, in-field and remote\nSMS-based payments). Further, it empowers merchants to accept all types of\npayment modes without arranging independent accounts with banks or with each\ncard company or payment service provider.<\/p>\n\n\n\n<p>Fundamentally, a payment aggregator performs the complex task of\nintegrating with all payment providers to facilitate a single solution for all\npayment acceptances.&nbsp;&nbsp;<\/p>\n\n\n\n<p>By utilizing the payment aggregator\u2019s services, you can gain all\nforms of payment acceptance, including QR codes, credit\/debit cards, Aadhaar\npay, UPI, net banking, bank transfer, SMS payments, e-wallet, cash and cheque\nunder one interface.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Differences_between_Payment_Aggregator_and_Payment_Gateway\"><\/span>Key Differences between Payment Aggregator and Payment\nGateway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><em><strong>The Payment Aggregator and Payment Gateway differ on several grounds, as explained in the table below:<\/strong><\/em><\/p>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong><em>Parameter<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Payment Gateway<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Payment Aggregator<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Role\n  <\/td><td>\n  Intermediary\n  <\/td><td>\n  Interface\n  <\/td><\/tr><tr><td>\n  Touchpoints Digitized\n  <\/td><td>\n  Online touch points including Mobile\n  App\/Website\n  <\/td><td>\n  Online &amp;\/ or offline\n  touch-points\n  <\/td><\/tr><tr><td>\n  Payment Options\n  <\/td><td>\n  Limited\n  <\/td><td>\n  Numerous\n  <\/td><\/tr><tr><td>\n  Integrated Solution\n  <\/td><td>\n  Yes\n  <\/td><td>\n  Yes\n  <\/td><\/tr><tr><td>\n  Payment Success Rate (PSR)\n  <\/td><td>\n  Depends on managerial capabilities\n  of payment gateway \n  <\/td><td>\n  Considerably higher payment\n  success rate\n  <\/td><\/tr><tr><td>\n  Ownership\n  <\/td><td>\n  Owned by public &amp; private\n  banks, vendors, merchants, &amp; payment aggregators\n  <\/td><td>\n  Owned by Fintech entities\n  <\/td><\/tr><tr><td>\n  Permissions\n  <\/td><td>\n  RBI validation under the Payment &amp;\n  Settlement Systems Act, 2007 (PSSA)\n  <\/td><td>\n  Payment aggregator is mandated to\n  avail the requisite certification as per the Payment Card Industry Data\n  Security Standard (PCI-DSS)\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<p><strong><em>The following section will dig deeper into a few more details that\ndraw a line of distinction between Payment Aggregator and Payment Gateway.<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Role\/Function<\/h3>\n\n\n\n<p>A payment gateway serves as a transaction mediatory between\nmerchants &amp; consumers for the payment of goods\/services being purchased\nonline.<\/p>\n\n\n\n<p>A payment aggregator act as an additional layer of an interface that\nenables any type of transaction across offline &amp;\/or online touchpoints.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How does Payment Aggregator and Payment Gateway operate?<\/h3>\n\n\n\n<p>A payment gateway is outfitted with an interface that administers\ndata relating to payment transactions at the front end. Coming to the back end,\nthe Payment Gateway syncs with a bank aiming to issue merchant accounts.\nTherefore, in such scenarios, authorizing banks are mandated to manage the\nunderwriting &amp; fund transfer process for various merchants intending to\nopen accounts to process payments.<\/p>\n\n\n\n<p>Payment aggregators possess the ability to dig down the underwriting\nprocess of the acquiring bank &amp; process payments utilizing either the same\nMID (Merchant Identification Number) or different MIDs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Payment Options<\/h3>\n\n\n\n<p>In India, a payment gateway enables merchants to utilize a few &amp;\nlimited payment alternatives hosted on the mobile app\/website.<\/p>\n\n\n\n<p>A payment aggregator facilitates various payment options\nencompassing, Unified Payment interface, debit\/credit cards, net banking,\nSMS-based, biometric-enabled transactions, QR codes, SMS-based, cash and\ncheque.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_regarding_the_Payment_Aggregator_and_Payment_Gateway\"><\/span>Frequently Asked Questions regarding the Payment\nAggregator and Payment Gateway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are some generalized queries often encountered by the end-users\nwhile comprehending the notion of web-based payments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a payment gateway with example?<\/h3>\n\n\n\n<p>A payment gateway is broadly referred to as a web-based payment\nservice that is synched with an e-commerce avenue as the platform to make &amp;\nreceive payments. The procedure for receiving payment includes the consumer\nneeding to provide some information such a card no, CVV, and expiration date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is Visa a payment gateway?<\/h3>\n\n\n\n<p>Credit card networks operate in tandem with payment processors to\nprovide coordination between merchant &amp; issuing bank They are also liable\nto set interchange &amp; assessment fees. American Express, Visa, Master Card\nare the widely known credit card networks.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the difference between a payment gateway and a\npayment processor?<\/h3>\n\n\n\n<p>The payment gateway usually serves its purpose at the beginning and end of the transaction, where end-users will provide their <em><strong>credit card<\/strong><\/em><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Credit_card\"><em><strong>[1]<\/strong><\/em><\/a><\/sup> details &amp; receive consent or rejection of the transaction. The payment processor keeps moving and processing the information between the consumer\u2019s bank &amp; the merchant acquirer until the transaction is completed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is a payment aggregator example?<\/h3>\n\n\n\n<p>In simple words, Payment Aggregator comprises a collection of\ndifferent payment gateways. The service provider would sync with multiple\noptions for electronic payments, i.e. different payment gateways &amp; bringing\nthem under one hood. Billdesk and Instamojo are the two popular examples of\npayment aggregator services.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is UPI a payment aggregator?<\/h3>\n\n\n\n<p>The traditional payment channels through which a payment aggregator\naccepts payments could be debit, credit cards, wallet, UPI, etc. Payment\naggregators serve the role of intermediary that bridges the gap between the\npayer (customer) and the payee (merchant).<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is clear that Payment Aggregator and Payment Gateway serve different purposes. The payment gateway largely works as an inlet for accepting online payment, and it has nothing to do with the processing part. Whereas the Payment aggregator seeks to club various payment gateway under one hood, enabling it to facilitate various payment options encompassing, Unified Payment interface, debit\/credit cards, net banking, and so on.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/online-payment-gateway-license-india\/\">Overview of Payment Gateway License in India <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you are on the verge of launching a new online business, you must probably be grappling in setting up the best payment transaction modes. Payment aggregators and payment gateways are the two terms that are widely used in the online business landscape. Although they sound intrinsically similar, they differ on several grounds that we [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":34995,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[329],"tags":[1936],"acf":{"service_id":"92"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":8609,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34972"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=34972"}],"version-history":[{"count":21,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34972\/revisions"}],"predecessor-version":[{"id":68944,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/34972\/revisions\/68944"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/34995"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=34972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=34972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=34972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}