What are the three party payments in India - Difference between Payment Gateway and Payment Aggregators

　　### Payment gateways and payment aggregators: differences and selection guide

　　##### What is a payment gateway?

　　A payment gateway is an intermediary that connects a merchant to a financial institution and ensures the secure transmission of payment data. It allows merchants to accept payments from customers on their websites or apps, usually in connection with card transactions. Instead of transferring funds directly, the payment gateway transmits payment information and the funds transfer is done by the acquiring bank and the card-issuing bank.

　　##### What is a payment aggregator?

　　A payment aggregator is a payment solution that integrates multiple payment options (e.g. cards, UPI, internet banking, wallets, etc.) into a single platform. It provides multiple payment options to merchants and takes care of fund settlement.

　　##### Payment aggregator roles and responsibilities

　　The main responsibilities of payment aggregators include merchant onboarding, transaction processing, settlement, refund and chargeback processing, providing support, and ensuring compliance. They provide merchants with dashboards to track payment activity and provide data analytics.

　　##### Payment Gateway and Payment Aggregator

　　Payment gateways are part of payment aggregators and are responsible for securely transmitting customer payment data, while payment aggregators simplify the payment process by combining multiple merchant accounts into a single account. Both facilitate online transactions, but there are distinct differences.

　　##### How to choose payment gateway and payment aggregator?

　　The choice between a payment gateway or a payment aggregator depends on the needs and resources of the enterprise. Large enterprises are suited to using a payment gateway because it offers greater control and the potential for lower transaction costs. Small and medium-sized businesses are better suited to using a payment aggregator because it simplifies the setup process and offers a variety of payment options.

　　##### Conclusion

　　Ultimately, the choice between a payment gateway or a payment aggregator depends on the size and needs of the business. Understanding these differences and combining them with business goals can ensure that the best payment solution is chosen, increasing efficiency and customer satisfaction.