To accept card, UPI and net-banking payments online, businesses rely on payment gateways and aggregators. The two terms are often confused.
This guide explains the difference and the RBI framework.
What is Payment Gateway vs Payment Aggregator?
A payment gateway is the technology that securely transmits payment data between the customer, merchant and banks. A payment aggregator onboards merchants, collects funds and settles them, often bundling the gateway.
Payment aggregators in India must be authorised by the RBI.
Frequently asked questions
Do I need my own merchant account to accept online payments?
Not necessarily. Payment aggregators let you accept payments without setting up a separate merchant account with each bank.
Are payment aggregators regulated?
Yes. Payment aggregators require RBI authorisation and must follow its guidelines.