Build or Lease? Navigating the Payment Infrastructure Dilemma

Today, a large number of businesses are considering the prospect of creating their own payment gateway, expecting to save money on transaction processing as well as provide merchants with full control over the process. The development from scratch offers multiple advantages. Yet, taking into account all the new requirements and compliance with the security standards, independent development can be problematic. There is also a fairly cost-effective alternative.

You can simply license a white-label payment infrastructure – a pre-developed solution from experienced payment vendors that does not require a lot of resources and provides a fast time-to-market. But which option should you choose? Read on and learn about the pros and cons of two options for your business goals.

Where to start: options to consider

1. Build a payment gateway from scratch

Developing a payment gateway on your own is a complicated and resource-intensive assignment that needs significant knowledge, finances, and adherence to all the security and regulatory standards. A custom-built payment gateway also requires deep technical knowledge in areas such as secure coding, payment methods and providers integration, fraud prevention, and compliance with Payment Card Industry Data Security Standards (PCI DSS) compliance.

Alternatively, you can order a payment gateway development from a professional company. However, it is similar to building a payment gateway on your own. But in this case, the costs will be much higher since the project costs will include not only the operational expenses but also the profit of your hired company – the developer.

On the one hand, building a payment gateway involves significant upfront investment and ongoing maintenance fees. On the other hand, it provides unlimited flexibility and customization.

2. Lease a payment gateway

Leasing a payment gateway is considered one of the most efficient, fastest, and least costly ways to launch your business. Since the concept of software as a service (SaaS) has proven to be a great business opportunity, leasing a payment gateway is perfect both for established companies and startups. A white-label payment gateway comes adapted to your needs and offers branding, customization, and integration with your acquiring partners. However, it is more of a one-size-fits-all solution. It will not provide the same flexibility as the one built independently.

If you explore the option to lease a payment infrastructure from a trusted vendor, be sure to pay attention not only to the terms of the deal but also to the conditions of after-sales service. It is vital to know in advance:

• How much will it cost to launch a payment gateway under your brand name?
• Is it possible to add new features or integrations upon request?
• How much may it cost to add new functionality to an existing system?
• How long will it take to implement the new functionality?
• Is the software certified with the main data security standards?
• What are the steps taken to protect the system against potential failure or downtime?

The answers to these questions will allow you to obtain reliable software, cut maintenance costs, and invest more in directly growing your business.

The pros and cons of building a custom payment gateway

Now, let’s dive deeper into the pros and cons of each solution, starting with developing a payment gateway from scratch.

Pros

1. By building a payment gateway from the ground up, you get complete autonomy over its architecture and functionality. It means you can tailor the system specifically to your business’s unique needs and goals, optimizing performance and seamless integration with existing systems.
2. A custom-built payment gateway is naturally designed to adapt to your business’s evolving growth trajectory, assuring that the system can effortlessly deal with increasing transaction volumes without affecting performance or user experience.

Cons

1. With all the advantages of the independent solution, it demands a significant investment in technology, time, and resources, which can be tough for small and midsize businesses. What’s more, creating a robust, secure, and compliant payment gateway requires expertise in diverse domains, such as software development, cybersecurity, and regulatory compliance.
2. Maintaining and upgrading a custom payment infrastructure is another ongoing commitment. To ensure security and efficiency, you need to perform continuous efforts, which can divert resources and attention away from core business operations.

The pros and cons of leasing payment gateway

What about leasing a payment gateway?

Pros

1. In the case of leasing a payment gateway, vendors often offer flexible pricing models that scale with your business’s growth, making it a cost-effective choice for many companies.
2. Furthermore, this option stimulates quick deployment of payment solutions – you can seamlessly integrate it with your existing platforms, accelerating time-to-market.
3. By leasing the solution from established providers, you also benefit from their expertise and support, concentrating on your core competencies, such as customer acquisition, product development, and market expansion.
4. Another crucial benefit is its cutting-edge technologies. As white-label payment software vendors resell their solutions to multiple customers, they make sure to leverage the latest technologies available on the market and gain a competitive edge.
5. Lastly, there are payment integrations to consider. White-label payment solutions usually offer hundreds of payment methods and providers integrated under one roof, saving customers plenty of time and money on integration development.

Cons

1. When it comes to infrastructure leasing, it’s crucial to consider the potential for hidden fees, charges for upgrades, or additional services. Due to this, the contract should be carefully reviewed in advance to avoid unexpected costs.
2. Additionally, leasing a payment infrastructure won’t provide the same level of control over the system, as well as flexibility and customization.

Final thoughts

Ultimately, the decision to build or lease a payment gateway depends on your business goals, resources, and technical expertise. Building a custom gateway offers maximum control but requires significant investment and long-term commitment while leasing a white-label solution provides a faster, more cost-effective entry into the payments industry. For businesses seeking a reliable and innovative partner, Akurateco offers a state-of-the-art white-label payment gateway with a network of over 370 global and local payment methods. Equipped with features like intelligent payment routing, cascading, recurring payments, and automated merchant onboarding, Akurateco empowers companies to streamline operations and focus on growth.