Building vs. buying: how to get the best payment gateway for your growing business

When scaling, businesses often encounter a critical decision: should they develop a payment gateway from scratch or opt for a ready-made white-label solution? If you’re at this crossroads, you’re in the right place. Sit back, get comfortable, and read on.

While the right choice depends on your unique needs, we’re here to guide you through the process. In this brief guide, we explore the advantages and drawbacks of both options to help you make an informed decision.

Why build a payment gateway from scratch

As a business scales, transaction volume increases, and the need for new payment method integrations arises, the owner may contemplate a custom payment gateway development.

The primary appeal of building a payment gateway from the ground up is the complete control and customisation it offers. However, this route comes with a significant downside –?it demands substantial resources, both in terms of time and financial investment.

To help you weigh your options, here’s a list of the key advantages and disadvantages of building your own payment gateway.

Pros

• Tailored integration. A custom-built solution allows seamless integration with your business’s existing systems and infrastructure.
• Flexibility and scalability. You can design features that address your project’s needs and quickly adapt as your business evolves.
• Cost control. By avoiding unnecessary payment processing fees, you only pay for the features and services you require.
• Competitive advantage. A custom gateway can set you apart from competitors, enhance your brand reputation, and demonstrate a commitment to a seamless payment experience.
• Additional source of income. Owning a payment gateway allows you to become a payment service provider for other merchants, generating revenue through registration and transaction fees.

Cons

• Development time. It may take several years to develop, test, and launch your solution, followed by continuous maintenance.
• High costs. Building a payment gateway from scratch involves substantial expenses. This includes not only the initial development but also the ongoing expenses for infrastructure, rigorous security measures, compliance, and regular updates. The complexity and scale of these costs can quickly add up, making it a challenging commitment for many businesses.
• Regulatory compliance. Ensuring compliance with industry regulations, including PCI DSS, is complex and costly. The process demands extensive resources and expert knowledge, adding a significant burden to development and ongoing operations.

Why opt for a white-label payment gateway

A white-label payment gateway is a third-party solution that can be extensively customised to match your brand, website design, and business model. Unlike building a gateway from scratch, this option doesn’t require significant technical expertise or resources.

Let us illustrate why businesses opt for the white-label model using Corefy’s solution as an example.

Here’s what you get, opting for a white-label payment gateway:

• Payment expertise. Gain access to a dedicated team of payment specialists who bring deep industry knowledge, helping you achieve your business goals more efficiently.
• Integrations with payment providers. Benefit from a wide array of ready-made integrations with payment providers and the flexibility to add new ones upon request.?
• Unified management. Streamline daily operations, manage settings, and configure payment routing across multiple providers from a single, intuitive dashboard.
• High security with lower compliance costs. Full compliance with PCI DSS without the burden of undergoing certification yourself provided your company doesn’t directly handle customer funds.
• Cost-efficiency. The solution's price per month is equivalent to one developer’s salary.

While a white-label payment gateway offers flexibility, it comes with some limitations. Customisation options may be restricted by the platform's architecture, and businesses are dependent on the provider for updates, support, and compliance. Additionally, as your business scales, ongoing processing fees can become a concern.

Custom payment gateway vs. white-label solution: a brief comparison

Deciding between these options comes down to your business objectives, available resources, and timeline. If complete control and extensive customisation are your top priorities, building a gateway from scratch is the way to go. On the other hand, if speed and efficiency are essential, a white-label solution enables you to launch quickly.

Here’s a side-by-side snapshot to help you compare the options once more.

Your decision comes down to finding the right balance between control and the practical considerations of time, cost, and expertise. Choose the approach that best aligns with your long-term vision and operational capabilities.

Feel free to contact us for expert guidance on selecting the best solution for your business!

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