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

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

If you are in the process of launching your business, especially if it is an eCommerce store, you are probably trying to find the best setup for online and offline transactions. As a result, you might have already come across different terms like payment aggregators and gateways, and you might not know which one to choose. Do not worry, we have outlined the difference in this payment aggregator vs. payment gateway guide. Keep reading to get clarity.

What Is a Payment Aggregator?

In simple terms, a payment aggregator is a collection of different payment gateways. It is a service provider that provides and aggregates different payment acceptance services to merchants. So, the payment aggregator facilitates any transaction, including digital payment methods, offline touchpoints, recording of cheques and cash. With the payment aggregator, merchants can accept all payment methods without setting up separate accounts with different payment service providers, banks, or card companies. Mainly, the payment aggregator takes a massive load of integrating several payment providers to offer a single solution for every payment acceptance.

When you use the services of the payment aggregator, you can enjoy all forms of payment acceptance, including QR codes, net banking, credit/debit cards, e-wallets, SMS payments, cash, cheque, etc., under a single interface.

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

What Is a Payment Gateway?

A payment gateway is an eCommerce application that allows the passage of online payment transactions. In simple terms, it is a means to accept payments online. It integrates, captures, moves the information to a payment processor or an acquiring bank, and finally sends an approval or decline to the merchant. A typical payment gateway completes this process within a second. In addition to that, the payment gateway ensures that all incoming funds are transferred to the merchant account without interference from any third party.

The Difference Between Payment Aggregator and Payment Gateway

Although the payment aggregator and payment gateway are all about enabling online payment transfers, they differ in some areas. One of the significant differences is that the payment gateway is perfect for eCommerce websites or apps, while payment aggregators digitise online and offline payment touchpoints. Aside from that, there are other significant differences between payment aggregators and payment gateways with an increased number of merchantslisted below.

Type of Registration

With payment aggregators, all of the merchant accounts are in one place without multiple registrations. All you need is one registration, and you can offer all the payment methods available. On the other hand, the payment gateway requires you to register a bank account, facilitating the payment transfer directly.


Payment aggregators have lower fees compared to payment gateways. In addition to that, payment gateways might charge merchants setup and maintenance fees. With the payment aggregator, you do not have to worry about these fees, especially if you take the time to find the perfect fit for you. In some cases, you might only get charged a transaction discount rate.

Types of Services

When the number of merchants’ applications and registration gets high, it becomes difficult for the payment gateway. For instance, with an increased number of merchants, the verification and screening process can become complicated, meaning that the payment processing might also be affected. In addition to that, payment aggregators have a more personalised customer service compared to payment gateways.

The Role Between the Parties

The payment gateway works as a medium or intermediary between the customers and merchants. While on the other hand, the payment aggregator is more of a facility with several mediums connected to it and through which various intermediaries receive the funds and offer settlements.

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

Security and Compliances

Payment gateways require approval and licenses under the laws and regulations of the country in which the merchant is operating. Payment aggregators require a similar permit when compared to payment gateways and the payment aggregator license. In addition to that, they need to be compliant with the Payment Card Industry Data Security Standard (PCI DSS).


In most cases, payment aggregators are owned by private fintech companies, while payment gateways can be owned by private banks, vendors, payment aggregators, public banks, and even merchants.

Bottom Line

Payment gateways and payment aggregators have an underlying function of ensuring that all online transfers are enabled. However, the two solutions possess various tasks that make them different, highlighted in this payment gateway vs. payment aggregator comparison. As a result, you can now see how they are different and a perfect fit for your business. So, you can proceed to implement either a payment gateway or an aggregator into your business to start processing payments.

Olufifun A.

Content Writer

I write unique, well-researched, educative and entertaining articles and blog posts to meet specific needs. I deliver articles on time, and I am diligent, dedicated, and focused on generating amazing results.