The global payment processing market is expected to grow exponentially to approximately US#198 billion by 2032, from US$65.6 billion in 2022. Quick, secure, convenient, and reliable payment gateways such as a white label payment gateway are here to say. Now, comes the billion-dollar question - should you buy an existing payment gateway solution, or start a payment gateway of your own in 2024 without breaking the bank?
Before
we read more about white label payment gateways and start your own payment
gateway business, let us first gain a clear and complete understanding of
payment gateways so all of us are on the same level of understanding.
What is a Payment Gateway?
A
payment gateway can be referred to as the technology that facilitates the
acceptance of digital wallet and card payments from customers. The term
includes physical card readers that usually find a place in brick-and-mortar
retail stores and even their online counterparts. It also includes the payment
process for mobile commerce, eCommerce, and a wide range of card-not-present
(CNP) transactions.
It is
worthwhile to remember that payment processors and gateways act as
intermediaries between customers and businesses to ensure that online financial
transactions are securely and promptly carried out. In other words, payment
gateways such as a white label payment gateway facilitate reliable, secure, and
seamless execution of online transactions. These gateways deploy out-of-the-box
security measures such as fraud detection tools and SSL encryption to protect
critical customer data (personal and financial).
Benefits Of Starting Your
Own Payment Gateway Business
ü If
you want to start your own payment gateway business, the first thing that may
probably bring a smile to your face is that most off-the-shelf payment gateway
solutions are characterized by high sign-up fees and costs with every
transaction made. This could have easily eaten a big chunk of your profit over
time. By starting your own payment gateway business, you can save on these
hefty sign-up costs and long-term fees.
ü Starting
your own payment gateway business also allows you to sell its products to other
merchants, agents, and independent sales organizations (ISOs).
ü Most
off-the-shelf payment gateways don't support multi-currency transactions and
recurring payments that can dramatically limit your ability to process many
transactions. When you start your own payment gateway business, you can make a
payment gateway that supports multi-currency transactions and recurring
payments, in addition to many other value-driven features.
ü An
out-of-the-box and highly scalable payment gateway can be quickly integrated
with other systems such as ERP or CRM which, in turn, will improve data
analysis, real-time reporting, and customer support.
ü You
can start a white label payment gateway to match the desired expectations,
preferences, and requirements of your target audience. For instance, you can
significantly reduce cart abandonment rates by building a payment gateway that
has a simplified checkout process with minimal redirects.
Important Considerations
There
are certain aspects that you should be thoughtful about.
The
decision to start your own payment gateway business is a big one, to say the
least. This is simply because it means you will have to follow a series of
compliance requirements. For instance, you will have to comply with the
stringent PCI DSS (Payment Card Industry Data Security Standard) to accept,
store, transmit, or process credit card information in a secure environment.
Secondly, you need to deploy proactive and out-of-the-box data privacy and
fraud detection measures that would require significant investment and
expertise. Thirdly, you will need to hire the services of professional and
experienced developers who can help you easily navigate a wide range of payment
processing complexities. Fourthly, you will have to divert some resources to
maintain the payment gateway, provide customer support, and troubleshoot
issues. Lastly, you will have to build partnerships with banks and financial
institutions for smooth performance and execution of payment data.
How to create your own
payment gateway?
The
first step to start your own payment gateway business such as a white label
payment gateway is to clearly define your business requirements. To get
started, you will have to identify the target audience, ascertain the payment
methods, gain insights into the volume of transactions you would be expected to
handle, gather details about currencies you want to support, and more.
Thereafter,
you should ensure conformity with all relevant financial and other regulations,
regular system and process audits, and robust security & preventive
measures in place to prevent fraud, data theft, and data loss. You will also
need to discuss the best course of action with different teams such as software
development, app development, and data encryption agencies. Moreover, you will
have to acquire sufficient bandwidth, server space, and internal resources to maintain
the payment gateway at all times.
To start your own payment gateway business, you
can explore innovative WebPays' white label payment gateway solutions that
allow you to easily customize the user interface to match branding while
handling the exhaustive list of payment processing, security, compliance, and
maintenance complexities. To learn more and get started, you can reach out to WebPays.
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