Choose A Payment Gateway Solution For Your Business
PSPs and merchants who need to process different types of electronic payments have to use a payment gateway of some sort. There are two options which they can use: a licensed payment gateway solution and a hosted one. Both of them have some pros and cons which you need to analyze carefully in order to choose the solution for your business. Let’s try to point them out.
If you decide to use a licensed payment gateway solution you are going to obtain the following advantages: control of the gateway infrastructure, no per-transaction fees, integrations with banks and platforms, additional functionality development. But there are also some disadvantages associated with this solution: expensive license, the necessity to have PCI-compliant environment to install the software.
In case when a hosted payment gateway solution will be your choice you will get the following advantages: no licensing costs, only monthly and transaction costs, no PCI-compliant environment required, etc. However, some disadvantages also exist: no control over hosting environment quality or downtime, per-transaction costs, etc.
Taking into account the listed advantages and disadvantages the first solution is considered to be preferable for merchants and PSPs who process large transaction volumes and the second one will suit small and mid-size businesses.
Additional information on this issue can be found in the article at #PayVisors.