Businesses are increasingly looking for ways to differentiate themselves, streamline processes and enhance the customer experience. One key area where these objectives intersect is payment processing.

According to a report by Polaris Market Research, the global payment processing solutions market was valued around $67.4 billion in 2024 and is expected to reach more than $259 billion by 2034. The size of the payment processing industry is a reflection of its business value and the diversity of needs that exist – it's not the kind of function with a one-size-fits-all solution.

White-label payment gateways help businesses improve their payment experience and reshape the way they conduct online transactions. Below, we'll explore this technology and provide insight into the advantages of white-label payment gateways. Here's what you need to know.

What's in this article?

• What is a payment gateway?
  
• How do payment gateways work?
  
• What is a white-label payment gateway?
  
• How are white-label payment gateways implemented on a website?
  
• White-label payment gateways vs. payment aggregators
  
• What types of businesses use white-label payment gateways?
  
• Benefits of using a white-label payment gateway
  
• Choosing a white-label payment gateway
  
• Checklist for choosing a white-label payment provider
  
• How Stripe Payments can help
  

What is a payment gateway?

A payment gateway is a technology businesses use to accept and process online payments. It acts as the bridge between a customer's payment method – such as credit cards, digital wallets or bank transfers – and a business's merchant account, transferring funds quickly and securely.

Payment gateways help ensure the security of transactions by encrypting sensitive information, such as card numbers and personal details. And alongside other players in the payment process, they contribute to verifying transaction authenticity to prevent fraud. Payment gateways also help authorise transactions, communicating with card issuers to confirm that customers have sufficient funds to complete their purchases.

How do payment gateways work?

The process of how a payment gateway works involves several basic steps:

1. Initiation: The transaction is initiated when a customer decides to make a purchase and enters their payment information on the business's website or app.

2. Encryption: Once the customer submits their payment details, the web browser encrypts this data, typically using SSL encryption, for secure transmission. This encrypted data is then sent to the business's server and, in the case of online transactions, onward to the payment gateway.

3. Routing: The payment gateway sends the transaction information to the relevant payment processor, which then forwards it to the card issuer or the correct card network.

4. Authorisation: The customer's bank receives the authorisation request, verifies the availability of funds in the customer's account, checks for any potential fraudulent activity and then sends a response back to the payment processor. This response is either an approval (if the funds are available and everything checks out) or a decline (if the funds are insufficient, the card is expired, etc.).

5. Order fulfilment: The payment gateway forwards the authorisation to the business, which then fulfils the customer's order. If the authorisation is declined, the customer is informed of the unsuccessful transaction.

6. Settlement: The card issuer transfers the funds to the business's account during a process known as “settlement,” and the transaction is complete.

What is a white-label payment gateway?

A white-label payment gateway is a fully developed payment gateway solution that businesses can customise to their requirements and rebrand as their own. This model allows companies to offer easy, secure, customised payment solutions without developing the technology from the beginning, which can be costly, time-consuming and fraught with technical challenges.

White-label payment gateways can support a wide array of payment methods, from credit and debit cards to digital wallets and bank transfers, giving businesses the flexibility to cater to the diverse preferences of their customer base. Additionally, these gateways can handle multiple currencies and languages, enabling businesses to expand their reach and access international markets.

How are white-label payment gateways implemented on a website?

While white-label payment gateways are often highly customisable, implementing them on a website often looks similar and follows similar steps, including:

• API integration: The actual implementation of a white-label payment gateway is generally done through application programming interfaces (APIs) that allow a business's website to connect to the provider's payments infrastructure. This allows the gateway to securely transmit transaction data and integrate with existing systems that handle features like order fulfilment or bookkeeping.

• Branding customisation: While many payment gateways feature external branding or redirect a user to a third-party checkout flow, a white-label solution is designed to blend into the background. White-label payment gateways feature customisable user interfaces that businesses can outfit with their own logos, brand colours and design elements. Gateways can also have customisable payment method features and subdomain options.

• Implementation costs: The cost to set up a white-label payment gateway can vary, though enterprise providers often charge an initial configuration fee that can range from $500 to $5,000. Monthly infrastructure fees are generally a few hundred dollars. Just like with other payment gateways, businesses will also need to pay a transaction fee, which is often a percentage of the payment or a fixed cent fee.

White-label payment gateways vs. payment aggregators

The primary difference between a standard payment gateway and a white-label solution is customisation. A white-label payment gateway is a system in the background that a business can rebrand as its own. It often allows deep customisation of the user interface (UI), user experience (UX) and checkout flow. This ensures a smooth experience where the customer never realises a third-party provider is involved.

In contrast, payment aggregators act more like intermediaries that "pool" different merchants under a single account. Their solutions are often easily integrated but feature external branding and potential redirects to the payment gateway provider website. While they offer some style customisation options, businesses are generally bound to a standardised user interface and experience.

Choosing between the two depends on a business's needs and use cases. Established corporations or Software-as-a-service (SaaS) platforms, for example, will likely benefit from full branding and total control over the UX. Smaller businesses or startups that require nimbleness and ease of use with minimal maintenance might want to choose a payment aggregator instead.

What types of businesses use white-label payment gateways?

White-label payment gateways are a viable choice for various businesses, regardless of size or industry, particularly those looking to optimise their website's payment processes and enhance their brand presence. However, they are especially appealing to certain types of businesses, including:

• E-commerce businesses
  For e-commerce businesses, creating a smooth, simple payment process is important. White-label payment gateways allow these businesses to integrate a fully functional payment gateway that carries their branding, helping to enhance user experience and boost trust and loyalty.

• Software-as-a-service (SaaS) providers
  SaaS providers often integrate payment gateways into their software to facilitate recurring transactions. With a white-label payment gateway, they can provide a frictionless, branded payment experience to their users.

• Banks and financial institutions
  These businesses may choose to use a white-label payment gateway to offer their customers a secure, reliable and branded online payment solution, without needing to develop the technology in-house.

• Online platforms and digital marketplaces
  Online platforms and marketplaces, where multiple vendors sell their products or services, can benefit greatly from white-label payment gateways. These platforms can use the gateway to process payments securely, disburse funds to vendors and provide a consistent payment experience across all vendors.

• Startups and SMEs
  For startups and small to medium-size enterprises (SMEs) that lack the resources or technical expertise to develop a payment gateway from the beginning, white-label solutions offer a cost-effective and time-efficient alternative.

Benefits of using a white-label payment gateway

While many businesses are satisfied with unbranded payment gateways, there are advantages to white-label gateways. These include:

• Keeping payments under your branding: A white-label solution ensures a business's brand remains prominent, removing third-party logos to maintain a professional identity throughout the checkout process.

• Customisable user experience: Businesses gain total control over crucial elements, such as the layout, flow and design of payment pages. This allows them to customise the UX and checkout flow according to their needs.

• Smoother integration: Most modern white-label gateways use robust APIs and software development kits (SDKs) to ensure a high degree of connectivity with existing systems including accounting software and customer relationship management (CRM) tools.

• Save time and development costs: Rather than building a proprietary solution from scratch, using a prebuilt white-label payment gateway can help a business launch a sophisticated payment platform in weeks rather than months.

• Strong security and fraud protection: White-label payment solutions are equipped with advanced encryption and real-time threat monitoring to identify and block suspicious transactions before they can escalate.

• Regulatory compliance: A white-label partner handles the heavy lifting of PCI DSS certification and regional data laws, helping a business remain fully compliant with less administrative overhead.

Control and customisation

By adopting a white-label payment gateway, businesses gain greater control over their payments infrastructure on their websites. This is not just about branding, although the ability to offer a payment solution under your brand name undoubtedly enhances brand consistency and trust. It's also about customising the payment experience to the specific needs and preferences of your customers, as well as aligning it with your business operations and strategy.

For instance, you can customise the user interface to provide an easy and intuitive payment process, reduce friction and increase conversion rates. You can also integrate the gateway with your business systems – such as CRM, ERP and accounting software – to streamline operations and improve data visibility and accuracy.

Cost and time efficiency

Developing a payment gateway in-house is a complex and costly process that requires specialised technical expertise. Even after the gateway is up and running, there are ongoing costs and efforts associated with maintenance, updates, security, compliance and support.

White-label payment gateways, on the other hand, come ready-made. You don't need to invest resources into development, and you don't need to worry about maintenance and updates – the provider takes care of these aspects. This enables you to focus on your core business activities and use your resources more effectively.

Security and compliance

Customers need to trust that their sensitive data is protected, and businesses need to comply with rules and regulations, such as PCI DSS, GDPR and PSD2. These rules and regulations can often be complex and burdensome to comply with while building payments infrastructure, but compliance is necessary to avoid hefty fines and reputational damage.

White-label payment gateways are designed with security and compliance at their core. They employ advanced encryption technologies, fraud detection mechanisms and other security features to safeguard customer data. They are also built to comply with industry standards and regulations, taking this burden off your shoulders.

Choosing a white-label payment gateway

White-label payment gateways can offer tremendous benefits for businesses that thoughtfully choose a solution that fits their needs and aligns with their goals. Businesses should consider several factors when deciding whether to use a white-label payment gateway for their website.

Business needs and objectives

First, you need to evaluate your business needs and objectives. Ask questions such as:

• Which payment methods do your customers prefer?
  
• Which currencies and languages do you need to support?
  
• Do you plan to expand into new markets?
  
• How important is branding in your payment process?
  
• How do you envision your payment experience?
  

The answers to these questions will help you to determine whether a white-label payment gateway is the right solution for your business – and if so, which features and capabilities you should look for.

Costs and benefits

Next, you should consider the costs and benefits. This is not just about comparing the costs of a white-label payment gateway with the costs of an in-house solution. It's also about considering the benefits – such as enhanced customer experience, increased conversion rates, streamlined operations, improved data visibility and reduced risk – and quantifying them in terms of revenue, savings and strategic value.

Providers and products

Finally, you should research providers and products. There are many white-label payment gateway providers out there, each with their own strengths and weaknesses, product offerings, pricing models and customer support policies. Look for a provider that:

• Aligns with your business requirements and goals
  
• Has a strong track record in the industry
  
• Offers a robust and flexible product
  
• Provides excellent customer support
  
• Is transparent and fair in its pricing
  

A streamlined, intuitive and secure payments infrastructure is a baseline expectation of modern customers. White-label payment gateways offer businesses a way to deliver on these expectations, providing a fluid and customised payment experience, saving time and costs, enhancing security and compliance and reinforcing brand identity.

Checklist for choosing a white-label payment provider

Selecting a white-label payment gateway is a long-term infrastructure decision. Businesses should evaluate several factors before choosing a provider to ensure that the provider is a good fit for their brand, technical needs and growth.

• Verify compliance and regulatory standards: Ensure the provider maintains the highest tier of PCI DSS certification and adheres to regional data laws.

• Audit supported payment methods: Confirm the gateway supports a global mix of credit and debit cards, digital wallets and alternative payment methods.

• Assess branding and UI flexibility: Verify that the user interface, cascading style sheet (CSS) and subdomains are fully customisable by the end user.

• Analyse the full cost of ownership: Document the setup fees, monthly SaaS subscriptions and any hidden costs for advanced features or technical support.

• Test integration and system compatibility: Review documentation to ensure the gateway integrates smoothly with existing systems without a total backend overhaul.

• Evaluate security and fraud tools: Look for a “security-first” architecture that includes tokenisation, end-to-end encryption and real-time fraud detection.

• Review reporting and data access: Ensure that the gateway provides access to a robust, real-time dashboard that provides detailed transaction reporting and customer analytics for better business intelligence.

• Confirm flexibility and performance: Research the provider's historical uptime and confirm their infrastructure can handle traffic spikes as volume grows.

• Gauge the quality of technical support: Evaluate whether customers have support 24 hours a day and dedicated account managers available to troubleshoot and resolve issues.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% historical uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments or get started today.