Payment Gateway vs Payment Aggregator: What Are the Differences?
In today’s advanced world, payment aggregators and payment gateways are factors we take for granted as exporters with the availability of cross-border payment platforms . Both help exporters make secure and easy international transactions. Let’s start by first understanding the difference between payment aggregators vs payment gateways.
A payment gateway technology helps transmit payment information between a bank and a merchant. You can use payment gateways to accept and send card-based payments using debit or credit cards.
A payment aggregator acts as a solution that organizes the payment process from one end to the other. It is a 3rd party service provider that enables you to make and get payments. Payment aggregators help clients use different types of payment methods like cards, UPI, e-wallets, and other such options.
- Also Read: FEMA Guidelines for exporters
Now that we understand what payment aggregators vs payment gateways do, let’s examine how they help exporters.
Help with international payments
Payment gateways help with the infrastructure to accept credit or debit card payments, bank transfers, e-wallets, and other international payment methods. Payment gateways also support exporters with multiple currencies to meet global customers’ requirements with payment options.
Payment aggregators support exporters in accepting mass payments across borders without having to create a direct relationship with the acquiring banks. They simplify access to a wide range of payment methods and currencies, easing the process for exporters to enter new markets.
Facilitate ease of payments
Payment gateways help with the technical aspects of international transactions, such as security, currency conversion, and data encryption. They also ensure that you meet international compliance requirements like PCI DSS, which is essential for exporters.
Payment aggregators eliminate the need for individual merchant accounts in each market and simplify the onboarding process by leaps and bounds. Currency conversions that are part of cross-border transactions become more accessible with payment aggregators.
Ensure better cash flow
Managing cash flow is essential for any business, especially exporters. Payment gateways ease this aspect by enabling faster payment processing times. This, in turn, helps exporters manage their cash flow and reduce the pain of delayed payments.
Payment aggregators offer quick settlement times compared with traditional banking options, which helps exporters. Some aggregators also offer expedited payouts, which helps improve cash flows.
Prevention of fraud and better security
Payment gateways have advanced in-built security measures. This ensures encryption, tokenization, and tools to detect fraud. This protects the payment-related information and reduces fraudulent transactions to a greater extent.
Payment aggregators include fraud prevention as part of their services. These could include risk monitoring, compliance with international regulations, and chargeback management. These measures will help you as an exporter working with high-risk markets.
Cost-effectiveness
Though payment gateways are more expensive to set up, they help reduce transaction fees in the long run, especially considering the volume of transactions that exporters have.
With aggregators, you have lesser costs for setting up and maintenance, which makes them an attractive option for smaller exporters struggling to make their place in the competitive market. Payment aggregators can bundle services, including payment processing, currency conversion, and fraud prevention, to reduce costs.
Reporting and analysis
You can get access to detailed transaction analytics to track export sales, monitor payment success rates, and manage chargebacks to improve overall operational efficiency.
With the comprehensive insights that aggregators provide, you can examine customer behavior, track payment trends, and analyze market performance to make data-driven decisions.
Build a positive customer experience
To reduce cart abandonment rates, you can enable frictionless and safe payment experiences with payment gateways. A friendly checkout process ensures that customers do not find the process tiresome.
Payment aggregators allow you to integrate numerous payment options, which means customers feel valued, improving customer experience.
At LeRemitt , we believe that our clients have a seamless experience across the export transaction gamut. Our platform lets you enjoy a safe, secure, and user-friendly experience.
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