In a world where eCommerce is expanding rapidly, there is a growing need for payment gateways. Despite the fact that there are multiple payment gateways available in the eCommerce industry. Still, some businesses have expressed interest in custom payment gateways that meet their business demands. So, to save your budget from extra costs, it is best to integrate the Shopify apps payment gateway with your online store. In fact, there are various expenses that go into the creation of one’s own customized payment gateway, and it is usually higher than the services.
If you own an online store and want to embed a payment gateway to process the transaction securely, then you are on the right platform. Here we will discuss the pros and cons of the Payment gateway and why there is a need to build your own payment gateway.
What is Payment Gateway?
A payment gateway makes online payments simple, efficient, and secure for businesses. Any secure payment gateway must conduct transactions in a way that protects your customers’ funds and personal information. Although, a custom payment gateway demands a higher time and financial investment. It will significantly aid your company’s growth and success. Moreover, with a secure payment gateway, one can gain the trust of the customers who are willing to make the transactions.
In other words, we can say that the payment gateway establishes a channel of communication with the three parties involved in the transaction. It makes sure that every transaction made is secure by using different anti-fraud tools and acting under PCI compliance.
Why there is a need to build a Customized Payment Gateway
Today’s eCommerce sector has multiple payment gateways available for businesses to select with their own pros and cons. Every payment gateway has different benefits and drawbacks that affect the services offered by the merchant through the specific platform. If we determine the pros and cons of every off-the-shelf software can help in selecting the right payment gateway for the business. No doubt, when you hire a Shopify developer for a custom payment gateway, the process can be time-consuming and tedious. So, before we make any decision let us look at the benefits and drawbacks of choosing a custom payment gateway.
Benefits of Custom Payment Gateway:
Off-the-shelf payment gateway solutions typically have high sign-up costs and transaction fees that, over time, can eat up a significant percentage of your revenues. You avoid these ongoing fees and registration costs with your own payment gateway.
Even if you are able to discover an off-the-shelf product that is competitively priced, you may still end up paying excessive fees and having your options restricted. For instance, recurring payments and multi-currency transactions might not be supported by a payment gateway managed by a third party. It would confine your capacity to execute such transactions. You can design and add additional features to your own payment gateway in accordance with the demands and needs of your company. Many entrepreneurs opt for the apps to reduce the burden of handling each transaction.
You can establish yourself as a provider if you own a payment gateway. It implies that you can demand transaction and registration fees from other business owners. So, you can bring a fresh company idea that will increase your profit. You can market and sell your payment gateway to other merchants, ISOs, and agents as a product.
Integration with Multiple Processors:
Integration with various payment processors gives your merchants a variety of options when deciding which acquiring bank to use to set up a settlement account. This also enables you to offer transaction costs that are competitive. Even different payment processors charge various interchange fees based on the number of transactions made by the merchant, among other variables.
We know that every merchant requires a secure payment gateway to win the trust of the customers. So, in order to prevent the chargebacks and other problems that are brought by the processing of fraudulent payments, merchants search for fraud detection features in payment gateways.
High Development Cost:
Building a brand-new payment gateway from start entails a number of maintenance and development expenses. However, by choosing to go with a custom platform, you are also investing in a long-term product for your business. It is optimized to meet your unique business needs. The initial cost of creating your payment gateway is typically higher than paying the associated fees to use an external payment gateway.
Integration and Certification Cost:
It takes a lot of time and requires a drawn-out certification process to integrate with payment processors. As you essentially pay for the convenience of using a payment gateway that has already been completely designed and established, using an off-the-shelf payment gateway is typically significantly easier and faster. Moreover, the payment processors send all the reports in raw format.
Who would require a Bespoke Payment Gateway?
Want to know which type of businesses require a payment gateway? The following business models could gain a lot by creating a unique gateway:
- Large retailers who do not want to rely on a third-party service and have a high turnover rate
- Current billers who like to update or replace their software
- A more sophisticated payment processing system is required for high-growth payment providers.
- IT companies who want to expand their market share by providing payment services
- Acquiring banks want to enhance their front-end solution
Hence, in the above post, we have discussed the pros and cons of the payment gateway. Also, we explain who actually needs a custom payment gateway for their business. We know that having a payment gateway can prove to be a valuable asset for the company. It enables you to provide merchants with a single, integrated solution for point of sale (POS) and payment processing in place of any existing payment gateways they might be utilizing. We have seen that many entrepreneurs prefer the Shopify app payment gateway. Because Shopify is a secure and cost-effective platform for small and middle businessmen. Additionally, it ought to provide reasonable prices, quick settlement, first-rate customer service, and exceptional reports.