{"id":8027,"date":"2021-08-30T05:52:53","date_gmt":"2021-08-30T05:52:53","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=8027"},"modified":"2021-08-30T06:12:27","modified_gmt":"2021-08-30T06:12:27","slug":"payment-aggregator-and-payment-gateway-know-the-differences","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/","title":{"rendered":"Payment Aggregator and Payment Gateway \u2013 Know the Differences"},"content":{"rendered":"\n<p class=\"has-drop-cap\">If anyone wants to start a new online business, then it is vital to set up the best payment transaction modes. Payments Gateways and Payment Aggregators are the two best payment transaction methods. To choose one for your business, it is necessary to know the clarity between these two transaction modes with the main points of explanation &amp; differences. However, technically there are two different terms related to this function that is Payment Aggregator and Payment Gateway. Most people get confused between these two payment transaction modes. In India, there are many Payment Aggregators as well as Payment Gateways. In this article, we will briefly discuss about the differences between Payment Aggregator and Payment Gateway.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a37beda76b70\" class=\"ez-toc-cssicon-toggle-label\"><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><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a37beda76b70\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#What_is_a_Payment_Gateway\" title=\"What is a\nPayment Gateway?\">What is a\nPayment 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:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#What_is_a_Payment_Aggregator\" title=\"What is a\nPayment Aggregator?\">What is a\nPayment 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:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#Some_Examples_of_Payment_Aggregator_and_Payment_Gateway\" title=\"Some Examples of Payment Aggregator and Payment Gateway\">Some Examples of Payment Aggregator and Payment Gateway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#Comparison_Table_Between_Payment_Aggregator_and_Payment_Gateway\" title=\"Comparison\nTable Between Payment Aggregator and Payment Gateway\">Comparison\nTable Between Payment Aggregator 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:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#How_Payment_Aggregator_and_Payment_Gateway_Help_Small_Businesses_in_India\" title=\"How Payment\nAggregator and Payment Gateway Help Small Businesses in India?\">How Payment\nAggregator and Payment Gateway Help Small Businesses in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#How_do_Payment_Aggregators_and_Payment_Gateways_Work_Together\" title=\"How do Payment\nAggregators and Payment Gateways Work Together?\">How do Payment\nAggregators and Payment Gateways Work Together?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#What_is_the_difference_between_a_Payment_Processor_and_a_Payment_Gateway\" title=\"What is the\ndifference between a Payment Processor and a Payment Gateway?\">What is the\ndifference between a Payment Processor and a Payment Gateway?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#Is_UPI_a_Payment_Aggregator\" title=\"Is UPI a\nPayment Aggregator?\">Is UPI a\nPayment Aggregator?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/payment-aggregator-and-payment-gateway-know-the-differences\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Payment_Gateway\"><\/span>What is a\nPayment Gateway?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><a href=\"https:\/\/swaritadvisors.com\/payment-gateway-license\" class=\"text-primary\">Payment Gateway<\/a><\/strong> is an e-commerce software app that allows way from the transfer of online payments. Simply, it means accepting online payments. Payment Gateway is a separate merchant service enabling online payments sing the E-commerce <strong><em>ASP (Application Service Provider)<\/em><\/strong>. ASP is a business offering computer-based services to clients over a network like access to a specific software application using a standard protocol like HTTP.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Payment_Aggregator\"><\/span>What is a\nPayment Aggregator?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\nis the inclusion of all Payment Gateways. Payment Aggregators are service\nproviders through which e-commerce merchants process payments. They allow\nmerchants to accept all the bank transfers without setting up an account for a\nmerchant that is linked with a bank. One main difference between a Payment\nAggregator and Payment Gateway is that the latter is mainly used in the online business;\nin the meantime, the previous digitises online and \/or offline payment\ntouchpoints.<\/p>\n\n\n\n<p>This payment method provides end-users with any transaction comprising a recording of cash &amp; cheque and online payment modes or offline touchpoints (anywhere in-store, in-field &amp; remote SMS-based payments). Moreover, it authorises merchants to accept all types of payment methods without arranging independent accounts with banks or with each card company or payment service provider. By using the services of <strong><a href=\"https:\/\/swaritadvisors.com\/payment-aggregator-license\" class=\"text-primary\">Payment Aggregator<\/a><\/strong>, you can gain all types of payment acceptance, comprising credit cards or debit cards, bank transfer, UPI, e-wallet, cash &amp; cheque under a single interface. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_Examples_of_Payment_Aggregator_and_Payment_Gateway\"><\/span>Some Examples of Payment Aggregator and Payment Gateway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A\nPayment Aggregator can provide a Payment Gateway, but a Payment Gateway can&#8217;t\noffer or provide a Payment Aggregator. Some examples of Payment Gateway\nAggregators are PayUMoney, Instamojo, Citrus, Billdesk, and CCAvenue. These companies\nprovide online Payment Gateway services to various merchants for an actual\nrate. These service providers take money from clients or users on behalf of the\nmerchant and transfer the money to the merchant account after a specific time\nperiod, usually three days, depending on the Payment Aggregators Policies.<\/p>\n\n\n\n<p>In\nIndia, Payment Gateways majorly include banks, and these include both public\n&amp; private banks like Axis, ICICI, HDFC, and more.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparison_Table_Between_Payment_Aggregator_and_Payment_Gateway\"><\/span>Comparison\nTable Between Payment Aggregator and Payment Gateway<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nPayment Aggregator and Payment Gateway differ on various grounds, and you can\ncheck the same in the table below:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td>\n  <strong><em>Factor <\/em><\/strong>\n  <\/td><td>\n  <strong><em>Payment Aggregator<\/em><\/strong>\n  <\/td><td>\n  <strong><em>Payment Gateway<\/em><\/strong>\n  <\/td><\/tr><tr><td>\n  Function \n  <\/td><td>\n  Interface\n  <\/td><td>\n  Mediator \n  <\/td><\/tr><tr><td>\n  Payment Options \n  <\/td><td>\n  A Payment Aggregator provides\n  numerous payment options comprising UPI, debit or credit cards, OR codes,\n  cash &amp; cheque, net-banking, etc.\n  &nbsp;\n  <\/td><td>\n  A Payment Gateway allows\n  merchants to use few and limited payment options hosted on the application or\n  website\n  <\/td><\/tr><tr><td>\n  Integrated Solution\n  <\/td><td>\n  Yes\n  <\/td><td>\n  Yes\n  <\/td><\/tr><tr><td>\n  Ownership \n  <\/td><td>\n  Owned by Fintech Companies\n  <\/td><td>\n  Owned by vendors, public\n  &amp; private banks, Payment Aggregators and merchants\n  <\/td><\/tr><tr><td>\n  Touchpoints Digitised \n  <\/td><td>\n  Offline and\/or Online\n  Touchpoints\n  <\/td><td>\n  Online touchpoints comprising\n  website or mobile application\n  <\/td><\/tr><tr><td>\n  Permissions\n  <\/td><td>\n  Payment Aggregator is\n  mandated to get the necessary certification according to the <strong><em>PCI-DSS\n  (Payment Card Industry Data Security Standard)<\/em><\/strong>\n  <\/td><td>\n  The Reserve Bank of India\n  validation under <strong><em>the PSSA, 2007<\/em><\/strong>.\n  <\/td><\/tr><tr><td>\n  PSR (Payment Success Rate)\n  <\/td><td>\n  Considerably higher PSR\n  <\/td><td>\n  Depends on the managerial\n  capabilities of Payment Gateway.\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Payment_Aggregator_and_Payment_Gateway_Help_Small_Businesses_in_India\"><\/span>How Payment\nAggregator and Payment Gateway Help Small Businesses in India?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Payment\nAggregators are cost-effective for Micro-transactions. Payment Gateways can\nrapidly access small businesses once they combine with Payment Aggregators. The\nPayment Aggregator model tends to offer a platform for online transaction\nprocessing, with minimal or no start-up fees &amp; fixed costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_Payment_Aggregators_and_Payment_Gateways_Work_Together\"><\/span>How do Payment\nAggregators and Payment Gateways Work Together?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It&#8217;s\na common mistake that Payment Gateways alone are sufficient to process\npayments. This would work for a brick &amp; mortar store (a POS machine, for\ne.g.) but not online. An online Payment Gateway is only the technical side of\nthe transaction. It mainly secures the data in the payment messages.<\/p>\n\n\n\n<p>Payment\nGateways have a bank working behind the scenes to issue merchant accounts. When\nthere are many merchants applying for the merchant accounts, eager to process\npayments, the allowing banks will have to classify both the underwriting and\nprocess of fund transfer for numerous merchants, which could become too much.\nThis is where Payment Aggregators came into effect. Payment Aggregators go via\nthe underwriting process with the acquiring bank and process payments for many\nsmaller sub-merchants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_a_Payment_Processor_and_a_Payment_Gateway\"><\/span>What is the\ndifference between a Payment Processor and a Payment Gateway?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nPayment Gateway serves its purpose at the starting and end of the transaction,\nwhere the end-users will offer their credit card details and get approval or rejection\nof the transaction. The Payment Processor keeps moving &amp; processing the\ninformation between the client\u2019s bank &amp; the merchant acquirer until the\ntransaction is finished.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_UPI_a_Payment_Aggregator\"><\/span>Is UPI a\nPayment Aggregator?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The conventional payment channels via which a Payment Aggregator accepts payments could be credit or debit cards, wallet, <strong>UPI<\/strong><sup><a href=\"https:\/\/www.npci.org.in\/what-we-do\/upi\/product-overview\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>, etc. Payment Aggregators provide the role of mediator that connects the gap between the customer or payer and the merchant or payee. <\/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>The certifying banks in the payment process execute the underwriting and the transferring process of funds for different merchants. In the front-end, they have an edge for processing the transactions &amp; at the backend, and the banks are the ones that issue the merchant account. In the instance of the Payment Aggregators, the underwriting process is executed by the acquiring bank, and processing of the payments is done via the <strong><em>MID (Merchant Identification Number)<\/em><\/strong> or various MIDs from different other intermediaries or parties involved. So after discussing Payment Aggregator and Payment Gateway, you can easily choose one of them for your online business as per your requirements. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-payment-gateway-license\/\">Procedure for Payment Gateway License: A Simplified Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If anyone wants to start a new online business, then it is vital to set up the best payment transaction modes. Payments Gateways and Payment Aggregators are the two best payment transaction methods. To choose one for your business, it is necessary to know the clarity between these two transaction modes with the main points [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":8028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[830],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8027"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=8027"}],"version-history":[{"count":8,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8027\/revisions"}],"predecessor-version":[{"id":8040,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/8027\/revisions\/8040"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/8028"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=8027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=8027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=8027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}