How to develop a payment gateway software_-cover

How to develop a payment gateway software?

In order to make a profit, a company needs customers. Absolutely everyone knows this. However, even if you find these customers, you will need to provide them with high quality service, in particular access to the most popular payment methods.
However, in order to accept payments from customers over the Internet, you will need payment gateway software. To do this, you will need to contact a payment service provider and enter into a contract with the company. Such companies have all the necessary possibilities for effective acceptance and processing of payments.
However, there is another option. Why not try to create a payment gateway yourself. Yes, it is not easy. Nevertheless, right now we will give you a ready instruction that will make such a task easier for you.

What is the purpose of a payment gateway?

A payment gateway transmits information from the client to the acquirer in order to confirm or reject the transaction. It is the payment gateway that has the task of verifying the sufficiency and availability of funds of the client in order to pay for the purchase.
In addition, this payment gateway uses data encryption to ensure maximum privacy and security. All data is processed internally.
Another critical function of the payment gateway is to protect merchants from the risks of fraudulent transactions. They partially solve the problem of chargebacks.

Why should you consider developing your own payment gateway?

Why do you need to develop your own payment gateway at all, since you can always negotiate with another company? In fact, developing your own payment gateway will provide you with many benefits:

  • You don’t have to pay anyone. Using payment gateways can take a lot of money out of your budget, especially if your company is just starting out. After all, companies often have to pay not one, but several fees and commissions at once. Having your own payment gateway eliminates this need.
  • You customize the payment gateway functions to your company’s needs. No single payment gateway provider is able to provide your company with all of the solutions you need to process payments. This is the reason why companies have to turn to multiple vendors in order to get access to the necessary features and capabilities. However, having your own payment gateway, you can easily integrate the necessary features to meet the needs of your company and better serve your customers.
  • Additional earning potential. If you’ve created your own payment gateway, there’s nothing stopping you from offering it to other companies both inside and outside the industry
  • Absolute control over transactions. You can add the features you need to the software you’ve developed based on your customers’ needs. Plus, it immediately eliminates any third-party influence on the payment gateway.
  • The highest quality of customer service. To provide the best possible service to your customers, you sometimes need to customize your gateway to meet their needs. Not every provider can do this, but with your own payment gateway, you won’t have any limitations. You get freedom of action in all its manifestations.

Be warned right away: development of your own payment gateway is not only advantages but also some disadvantages. In particular, the cost of such development may not be cheap as well as the cost of maintenance. In addition, such a payment gateway will have to pass several tests on security compatibility. You will need to obtain several certificates, including PCI DSS.

Your own payment gateway: the most important components

Now let’s go directly to the process of creating your own payment gateway.
The most important components of such a gateway will be:

  • Integration with two or more processors. It will allow merchants to serve customers from different countries and offer lower rates by directing the transaction to the processor that offers the lowest processing fee.
  • Connect to multiple payment methods and banks at once. Local payment methods are often overlooked by many companies, and for good reason. Such payment methods will not only save you money, but also attract even more customers.
  • Back office, which is nice and easy to use. Your task is to ensure the most convenient and smooth operation with your customers, and therefore, do not forget about the need to optimize the back office.
  • Availability of security certificates. Obtaining these certificates can be very time-consuming for your company. However, there is simply no other way to create your payment gateway. First and foremost, one should think about countering fraud and making sure the customers are as safe as possible. And until you get all the certificates, no legal payment gateway is out of the question.

Keep in mind that your payment gateway should be as flexible as possible and be scalable and tweakable for new features if needed. Otherwise, you simply won’t be able to keep up with the rapidly changing demands of the payment industry.

Sign up for the newsletter

Keep up-to-date with all things payments

By submitting this form, you acknowledge that you have reviewed the terms of our Privacy Policy and consent to the use of data in accordance therewith.

Thank you for subscribing to our newsletter