Do you want to start your own payment gateway business but are clueless about which of the two: custom payment gateways and white-label payment gateway solutions will be a better choice?

Let us explore why more and more businesses, irrespective of their line of operations or size of business, are embracing white-label payment gateway solutions over custom payment gateways.

Drawbacks of Custom Payment Gateways

Despite offering tailored solutions, custom payment gateways come with a series of drawbacks that may outweigh their overall benefits

• High Development Costs: Extensive development work and significantly higher upfront costs along with expenses incurred on ongoing maintenance, updates, and security enhancements put custom payment gateway out of reach of many businesses, especially micro, small, and medium-sized businesses.
• Time-Consuming Development: Custom payment gateway solutions demand significant time for design, development, and testing before the final product can be leveraged. This can severely dent the ability of businesses to adapt quickly to changing market conditions.
• Scalability Challenges: Custom gateways often tend to struggle badly to adapt to evolving business needs and growing transaction volumes. This is simply because scaling a bespoke solution is more complex and time-consuming compared to readily scalable white-label options.
• Security Concerns: Custom payment gateway solutions are more susceptible to security breaches, identity theft, and fraud compared to white-label options.
• Dependency on In-House Support: Support and maintenance for custom payment gateways usually rely on in-house teams. This puts strain on internal resources causing slower response times for issue resolution and updates.

Why White-Label Payment Gateway is better than a Custom Payment Gateway?

White-Label Payment Gateways offer many benefits, including but not limited to:

• Time Efficiency: If you want to start your own payment gateway business with a faster go-to-market approach, white-label payment gateway solutions can help you in countless ways. Firstly, they are ready-made and easily customizable. These pre-built solutions are highly affordable and help you save a fortune in terms of development costs.
• Reliability and Security: White-label payment gateway solutions are built and maintained by specialized providers and industry experts, ensuring a high level of reliability, flexibility, affordability, scalability, and security. These solutions adhere to stringent industry standards and compliance regulations such as GDPR and PCI DSS to prevent risks such as phishing, account takeover, identity theft, compromised databases, unauthorized access to accounts, card-not-present fraud, and more.
• Scalability: White-label payment gateway solutions are an excellent choice for you if you want to start your own payment gateway business. This is primarily because they are designed to seamlessly handle a wide range of transactions. Moreover, they can easily scale to accommodate growing business requirements.
• Customer Trust: Generally, custom gateway solutions lack a track record. On the other hand, established white-label providers usually come with an impeccable reputation for security, customizability, and reliability.
• Maintenance and Support: Custom gateways may require dedicated resources for maintenance, making them more resource-intensive. On the other hand, white-label providers typically offer ongoing support and maintenance, including updates for security and new features.

Let us now shift our focus to how to start your own payment gateway business.

White-label payment gateway solutions are a quick and great way to get the ball rolling and start accepting online payments without spending a fortune and countless years on building a payment gateway of your own. Building a payment gateway from scratch could even slow down your business's growth and success journey by many months if not many years.

On the other hand, white-label payment gateway solutions are ready-to-use solutions for immediate gratification and usage. Furthermore, you can control all aspects of the marketplace business, including admin and user experiences.

White-label payment gateway solutions are developed after extensive research and planning to delve into the needs of the target market. They are complemented with a robust payment gateway infrastructure to manage high traffic loads and maintain optimal uptime. Moreover, a seamless database management system is in place to store user data, transaction records, and other vital information.

If this is not all, a white-label payment gateway solution facilitates easy integration of your payment gateway into merchant platforms. Also, it adheres to stringent industry regulations and compliance guidelines such as the Payment Card Industry Data Security Standard (PCI DSS), Secure Sockets Layer (SSL), Tokenization, Transport Layer Security (TLS), Peer-to-Peer Encryption (P2PE), Two-Factor Authentication (2FA), Multi-Factor Authentication (MFA), and General Data Protection Regulation (GDPR) to process personal data lawfully, fairly, and transparently.

To start your own payment gateway business, you can simply get in touch with a trusted provider of impeccable repute such as ITIO Innovex in the world of white-label payment gateway solutions. A leading provider of frictionless, seamless, and out-of-the-box white-label payment gateway solutions, ITIO Innovex has helped businesses of all sizes and sectors experience exponential growth by embracing white-label payment gateway solutions.

Start your own payment gateway business journey now by choosing ITIO Innovex as your journey partner.