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New players like Payment Aggregators, Payment Gateway Providers, Payment Processors, and others have emerged in the technology-driven financial sector known as “FinTech”. With widespread technology adoption, the cashless economy is becoming the digital future. As such, understanding the inner workings of digital payment portals and the different players working in concert to support the payment process is crucial.
Although FinTech is an umbrella word for any financial services enabled by technology, let’s learn some of the most fundamental concepts pertaining to online financial transactions.
How does a Payment Aggregator work?
Multiple methods of transaction are now accessible. For retail and e-commerce to deliver a streamlined payment experience for their customers, they must accommodate both online and offline payment methods. The Payment Aggregator is a platform that allows businesses (merchants) to accept payments from several sources. Merchants, both physical and online, may take customer payments via the aggregator’s platform. Are you curious? Check out Akurateco’s payment aggregator services.
For what reason are Merchant Aggregators also known as Payment Aggregators?
Since each merchant is registered directly under the Payment Aggregator’s MID (Merchant Identification Number), all transactions are routed via this one central account, the Payment Aggregator is also known as a Merchant Aggregator. A sub-merchant account is made available to the retailer via the payment aggregator. A bank merchant account is optional for merchants.
To what end does Payment Aggregator serve businesses?
To survive and thrive in today’s competitive market, businesses must maintain a presence both online and off. Achieving harmony between the two is difficult because of the need of consistency in company choices, marketing, and the entire customer experience.
As a technology-driven answer to the problems of doing business in a constantly shifting market, Payment Aggregator provides a comprehensive payment system. This is applicable to all organizations everywhere, regardless of size, income, field, etc. In the retail and online shopping worlds, a Payment Aggregator unifies all forms of payment, from cash and checks to debit and credit cards, internet banking, e-wallets, UPI (Unified Payments Interface), EMI (Equated Monthly Installment), and more.
Payment Aggregator, Payment Gateway & Payment Processor: What is the difference?
All three terms—Aggregator, Gateway, and Processor—make up the same system. Both are essential to each other’s operation. The three parts and their respective roles are summarized as follows.
- Merchants (companies) may accept and collect payments from clients by using Payment Aggregator’s service, which consolidates many payment methods into one.
- A Payment Gateway is a system that allows customers to enter their payment information once and have it securely sent to and from a Payment Processor. Both the merchant and the consumer are informed of the payment’s success or failure.
- Acquiring bank, card service provider, and issuing bank may all access sensitive consumer information thanks to the white label payment processor.
The enhanced and efficient payment systems we enjoy today are the result of a number of moving parts, each of which must be understood on a fundamental level as we go further and farther into the digital world.
Together with Akurateco, you can create a white-label payment gateway and payment processor that operates under your own brand and launch it with a dedicated payment team at your service.