Are you a business owner looking forward to controlling business operations with the highest level of customization, or own an online store and want safe payments?
Whatever it is, if your answer is Yes, all you need to do is to build a custom payment gateway from scratch.
For some of you, payment gateway can be a new term. Isn’t It?
Well, haven’t you used PayPal, Amazon Pay, Stripe, Authorize.Net, and so on? These all are payment gateways. In simple words, a payment gateway is a technology that allows you to safely accept debit or credit card purchases from your customers.
So if you want to develop a payment gateway from scratch, you are in the right place. This guide will help you with all you need to know about payment gateway development.
But before diving straight into the topic it is essential to understand the difference between a Payment Gateway and a Payment Processor. Apart from this, you must know why going with a custom payment gateway instead of ready-made payment methods can be beneficial for your business.
A payment gateway is software that is used to connect a retailer’s website or app with the financial institution responsible for the transaction. Its motive is to safely deliver the customer’s payment information to the acquiring bank. The bank then further sends this information to the card issuer for authorization. The payment gateway responds to the merchant’s app or website on approval of the transaction and transmits the transaction data to the bank.
On the other hand, the payment processor is a financial institution that facilitates the transfer of funds electronically between merchants and customers. In other words, it facilitates the handling of technical aspects of transactions like routing the transactions to the card issuer for authorization and then passing the transaction information to the banking networks for settlement. It also handles the financial aspect of the transaction like depositing funds in the merchant account, performing chargebacks, and so on.
So a payment gateway is an advanced technology that connects the merchant, the customer, and the financial institution together whereas a payment processor is a financial institution that takes care of transactions and funds exchanges.
Although there are many ready-made options available in the market, none of them can offer you the freedom and control over the payment process as a custom getaway can.
Apart from this, even if we go with the current market scenario, according to a recent survey, the market size of the global payment gateway in 2022 was around 26.79 billion USD. This value is further expected to grow at a rate of 22.2% from 2023 to 2030. This means the future of a custom payment gateway is bright.
To get a better understanding, let’s go through some advantages of having your own custom payment gateway.
Needless to say, the features are going to play a major role in the overall development cost. So it is essential to go with only selected features as per your business need or the ones you want to offer your users. But yes, there are some must-have features that can’t be avoided to get or give a rich experience. Some of them are
Although a payment gateway creation process varies from business to business as per the need of the hour, still the steps remain the same. So let’s go through some common steps.
Step 1: Ideation & Research
It is essential to have a solid idea. After an idea, you are required to hash out the plan with experts in order to determine the feasibility or changes if any. Once it is done, go for extensive market research. Study your competitors, market trends, potential audience, and so on to get a better idea of what the current market needs are. This will help you build a competitive financial payment system.
Step 2: Designing
Once you are done finalizing your requirements, you can pass them on to the designers. UI/UX and graphics designers will help you design your product’s interface and brand identity. They will also build a working prototype to use as proof of concept.
Step 3: Development
After a feasible design, developers will start playing their roles where they will collect the material design elements from prototypes and use them to code the payment gateway. Developers can also integrate 3rd-party APIs depending on specific business requirements.
Whether it’s frontend or backend, both will be handled efficiently to create a robust and scalable system infrastructure.
Step 4: Quality Assurance
Bugs and errors can destroy the user experience. In order to tackle them, quality testing will be carried out where QA specialists will test the software rigorously to ensure smooth functioning even in heavy traffic. Once the testing is completed a detailed report will be generated to improve the quality of the app.
Step 5: Optimization
If the bugs and errors are found to be critical, the software will be handled back to the development team to fix the issues. Once they are fixed, the QA testers will again test it rigorously.
Step 6: Launching
Once the product is approved by the QA testers, it will be launched. You can also launch the beta version depending on the timeline. This will help you with valuable user feedback. On the other hand, you can also sell product services to clients or financial institutions as a white-label software solution.
Step 7: Support & Maintenance
The development process is not completed after the successful launch of a custom payment gateway. The software demands a team of live support agents to address the queries of your users. Apart from this, there is a need for developers to update and maintain the platform on a regular basis to provide you with an edge over your market competitors.
Custom Payment Gateway Software is one of the biggest opportunities to control your business operations without relying on third-party apps. It will also enable you to enter the rapidly growing market segment. So if you are planning to make a custom payment gateway Apptunix can help you in your endeavor. Apptunix holds extensive experience in the field of custom payment gateway development. It has served both local as well as global clients with white-label payment app development services.
Q 1. Can I Make My Own Payment Gateway?
Yes, you can have your own payment gateway. All you need is a top app development company like Apptunix, as it demands experience and technical skills.
Q 2. How Long Does It Take to Create a Custom Payment Gateway From Scratch?
Well, it all depends upon specific business requirements but generally, it takes about 6 – 8 months.
Q 3. How Much Does It Cost to Develop a Custom Payment Gateway From Scratch?
On average, the MVP of a payment gateway ranges anywhere from $80,000 – $200,000. Rest it all depends on specific business requirements. For a clear-cut estimated cost, you can schedule a free consultation.
Q 4. Do I Need a Payment Gateway for My Business?
Well, payment gateways provide you with custom features, more opportunities to earn, lesser fees, and enhanced security apart from exercising full control. So if you can afford it, it will be a wise decision.
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