Running a business online? Then you need to accept payments online. It’s how you get paid! But understanding online payments can feel like learning a new language. Two terms you’ll hear a lot are Payment Gateways and Payment Aggregators. What are they? And which one is right for you?

Don’t worry if you’re confused. Lots of business owners are! This blog post will explain payment gateways and aggregators in plain English. We’ll break down what they do, how they’re different, and help you decide which payment option makes the most sense for your business. Let’s make online payments simple!

Payment Gateway: The Secure Data Carrier

Think of a payment gateway as a safe, protected tunnel. When someone pays on your website, their credit card or payment info needs to travel to the bank to get approved. The payment gateway is like a secure messenger that carries this information.

Imagine this:

• Your Business: You want to receive money from sales.
• Customer: They’re buying something and ready to pay online.
• Payment Gateway: This is the safe tech that takes their payment info and sends it to the right banks.

Simply put, a payment gateway is technology that:

• Keeps payment info safe: Like a super-strong lockbox for important details.
• Talks to banks: It connects your website to the banks that handle payments.
• Lets you take payments online: It’s the tool that allows you to accept credit cards and other online payment methods.

Who are the important players in this payment process?

Let’s meet the key people involved when a payment goes through a gateway:

• Acquiring Bank (Your Business Bank): This is your bank. They help you process payments. They use the payment gateway to do this.
• Issuing Bank (Customer’s Bank): This is your customer’s bank. They decide if the customer has enough money and say “yes” or “no” to the payment.
• Networks (Visa, Mastercard, etc.): These are big companies like Visa and Mastercard. They connect the customer’s bank and your bank to make sure the payment goes smoothly.

Important Note: A payment gateway just moves information securely. It doesn’t move the money itself. Banks handle the actual money transfer.

You might recognize names like CyberSource or Mastercard Payment Gateway Services – these are examples of payment gateways.

Payment Aggregator: Your All-in-One Payment Solution

Now, let’s talk about payment aggregators. Think of them as your complete payment package. Instead of just being a secure tunnel (like a gateway), a payment aggregator gives you everything you need to accept online payments.

Let’s say you want to take payments on your website. Without a payment aggregator, you’d have to:

• Open accounts with many payment companies (for cards, digital wallets, etc.).
• Get technical and connect all those systems to your website yourself.
• Worry about security rules and regulations on your own.
• Keep track of money coming in from all these different places.

That’s a lot of work! Payment aggregators make it much easier.

A payment aggregator is a service that:

• Offers many ways to pay: They give you options like credit cards, debit cards, UPI, online banking, and digital wallets – all in one place.
• Is easy to connect: You connect your website to one system (the aggregator) instead of many.
• Handles the hard stuff for you: They take care of security, rules, and dealing with banks.
• Gets you paid: They collect money from all payment types and put it into your bank account.

Think of a payment aggregator as your payment helper. They take away the stress of online payments so you can focus on your business!

What exactly does a Payment Aggregator do for you?

Payment aggregators do many things to make payments simple for businesses:

1. Sets you up to accept payments (Onboarding): They help you get approved to take online payments.
2. Processes payments: They take payment info from your site and send it to the right places for processing.
3. Pays you your money (Settlements): They gather your money from the banks and deposit it in your bank account regularly.
4. Deals with refunds and problems (Refunds & Chargebacks): They help with refunds if needed and handle payment disputes.
5. Provides support if you need help: They offer customer service to assist you with your payment system.
6. Keeps payments safe and legal (Compliance & Security): They make sure everything is secure and follows all the rules.
7. Gives you a payment dashboard (Dashboard & Analytics): They often provide a place to see your payments and reports to understand your sales.

Basically, payment aggregators work with banks and use payment gateways (behind the scenes) to give you a full payment service.

Payment Gateway vs. Payment Aggregator: What’s the Real Difference?

You now have a basic idea of payment gateways and aggregators. Let’s highlight the main differences clearly:

Imagine building with LEGOs:

• Payment Gateway: Like individual LEGO bricks – important parts needed to build something bigger, but not a finished toy by themselves.
• Payment Aggregator: Like a complete LEGO set with instructions – it uses the bricks (gateways) and includes everything else you need to build a finished product, a ready-to-use payment system.

Here’s a simple table to show the key differences:

Feature	Payment Gateway	Payment Aggregator
Main Job	Securely moves payment data	Provides a full payment service with many options
Your Connection	You don’t connect directly	You connect directly to the aggregator
Setup Help	No setup help for businesses	Helps you get set up to accept payments
Money Transfers	Doesn’t handle moving your money	Moves money to your bank account
Ease of Use	More technical, for experts (like banks)	Easier to use, designed for businesses

Simple Summary:

• If you just need the technology to process payments, that’s a Payment Gateway (but you likely won’t use one directly).
• If you want an easy-to-use payment solution with many payment methods and support, choose a Payment Aggregator.

Why Businesses Choose Payment Aggregators

For most businesses, especially small and medium ones, payment aggregators are usually the best choice. Why? Because they offer big advantages:

• Easy to Set Up: Much simpler than dealing with banks and payment companies on your own.
• Less Worry About Rules: Aggregators handle a lot of the complicated legal and security requirements.
• Faster to Start Selling: You can start taking payments online very quickly.
• Often Cheaper: For smaller businesses, aggregators are often more affordable and less complex.
• More Ways for Customers to Pay: You can offer customers many payment options, making them happier and increasing sales.

Conclusion

For most online businesses, especially when you’re just starting or want a simple solution, Payment Aggregators are the best option. They simplify online payments so you can focus on growing your business and keeping your customers happy with easy, secure payments.

Choosing between a payment gateway and aggregator isn’t really a choice most businesses make directly. You’ll likely use a payment gateway through a payment aggregator or by working with a bank. Knowing the difference helps you choose the right payment partners and build a strong online business!

To complete your online payment strategy, especially if your Indian business frequently receives payments from overseas, consider BRISKPE. While payment aggregators efficiently handle domestic transactions, BRISKPE streamlines cross-border payments. 

It offers a faster, compliant, and cost-effective way to receive funds from abroad. Simplify your global payment process with BRISKPE today!