Table of Contents
Plenty of business owners consider using whitelabel payment gateways to build a consistent customer experience. But, is there any such difference between a regular payment gateway and one white labelled?
In this blog, we aim to decode the mystery and understand what a whitelabel payment gateway is, its advantages, how to choose one, and how it actually works.
Let’s get started!
What Is Whitelabel Payment Gateway?
A whitelabel payment gateway refers to a technological stack that allows businesses to accept payments while remaining consistent with their own brand identity.
To give you an example, ABC Fashion uses Cashfree Payments as its payments partner. However, unlike in conventional cases where the payment gateway places its logo on the payment page, in this case, ABC Fashion choses to use its logo, brand colours etc throughout the payment cycle. In fact, they can customise the entire payment experience to fit their brand guidelines.
As you maintain your brand identity throughout the website, you also offer a consistent experience to your customers.
Why Do Businesses Consider Whitelabel Payment Gateway?
Listed below are some primary reasons why a business can choose whitelabelling rather than going with the conventional payment gateway experience.
Higher Customer Trust
Opting for a whitelabel payment gateway gives you the leverage to redefine your customer’s buying journey and build a level of trust. Moreso, it helps,
- Maintain brand consistency across the entire purchase cycle
- Avoid redirects to third-party site to complete the purchase
- Instill a level of confidence in shoppers that their buying products from a legit platform
Lower Churn Rate
When it comes to making payments online, most customers feel uncomfortable when a website redirects them to a third-party site to complete the purchase. They start doubting the authenticity of the seller and the integrated payment technology, hence paving the way to high abandonment rate.
However, with a whitelabel payment gateway by your side, you ensure that customers are neither redirected to another site nor start to question the authenticity of your brand. This helps reduce the risk of abandonments and lowers churn rate.
Saves Resources And Time
Creating your own payment gateway may seem like a good idea, but not a feasible one, unless you have a lot of resources and time at your disposal. Moreso, setting up your platform requires individual integration with different banks, wallets, UPI platforms, etc. to offer different modes of payments to customers. This, in totality, is quite a tedious task. It demands time, effort, resources, and the knowledge to not only build the platform, but update and monitor it on a regular basis.
Whitelabel payment gateway helps you avoid such tedious efforts and saves time and resources, which you can otherwise use to enhance customer experience.
High Payment Security
A payment gateway needs to abide by many high payment security compliances (like PCI DSS, tokenization, AML norms etc.) and regulatory requirements. When you partner with a whitelabel payment gateway you don’t have to make extra efforts to get security compliances or necessary licences.
How To Choose A Whitelabel Payment Gateway?
Consider the following factors before choosing a whitelabel payment gateway for your business.
Diverse Payment Options
Modern day shoppers demand vast payment options. If not all, find a whitelabel payment gateway that offers at least all the popular payment options so as to ensure conversions and eliminate the risk of last minute drop-offs.
Cashfree Payments provides 120+ payment options for you to offer to your customers.
- Debit cards, Credit cards, and Prepaid Cards
- 65+ net banking option
- UPI
- Digital Wallets
- EMI and Pay Later
Ease of integration
Select a whitelabel payment gateway that offers plug and play features alongside modern APIs, wrappers, SDKs, etc. This can help ease the entire integration process, reducing time to go-live, or even the efforts needed to ensure whitelabelling on the website.
Reliable And Timely Support
Besides the basics, it’s highly important to choose a whitelabel payment gateway that provides consistent support. Consider talking to other brands that are currently using the services of a whitelabel payment gateway.
Compare the features of various agencies offering this service and only then come to a consensus. Some platforms also offer real-time assistance over chat, email, phone, etc. Consider these factors as well. Remember, due diligence is paramount.
Real-Time Reconciliation
This is quite an essential factor when selecting a whitelabel payment gateway for your business. Real-time reconciliation helps match business’ income and expenses instantaneously, eliminating the risk of errors or misses due to human intervention.
Reconciliation is especially important for medium and large business owners due to volume of orders, refunds, and other transactions. So, find a whitelabel payment gateway that offers an in-built dashboard with real-time reconciliation feature.
Faster Settlements
Settlement duration refers to the time taken by a payment gateway to transfer funds collected on behalf of a merchant, in the merchant’s respective account.
Faster settlement is critical in today’s time as this amount acts as a catalyst for businesses to restock their inventory, pay bills, or take care of other necessary and at-hand expenses. If a payment gateway takes too much time to make settlements, it will surely put a stress on your working capital
So, look for a whitelabel payment gateway that not only settles your funds in the least amount of time, but also gives you the leverage to opt for instant settlement like Cashfree Payments.
<Accelerate Your Settlements With Instant Settlements By Cashfree Payments>
Payment Analytics
Once your business starts to grow, keeping an eye on your growth trajectory and scalability becomes important. So, select a white label payment gateway that gives you the leverage to analyse all your transactions in real-time, study trends, look at payment volumes and their sources, and so on.
How Do Whitelabel Payment Gateways Work?
The functionality of a whitelabel payment gateway is the same as any other payment gateway with just an exception of no branding on the payments page.
Either way, here’s how a whitelabel payment gateway works.
- A customer adds products to their cart and proceeds to the payment page.
- They then select a payment mode of their choice. Let’s consider using a credit card in this case.
- Once the customer enters their card details on the payment page, the payment gateway encrypts and tokenizes the payment details.
- The payment gateway then sends the payment information to the Acquiring Bank (the merchant’s bank).
- The Acquiring Bank further forwards the information to the card networks.
- The card network runs a fraud check based on the details furnished and forwards the information to the Issuing Bank (the customer’s bank).
- The Issuing Bank does its own due diligence and checks for availability of funds.
- If the customer has enough funds in their account, the Issuing bank sends a positive response to the card network.
- The card network relays the same message to the Acquiring Bank.
- Finally, the payment gateway shares the status of the payment to the customer and the merchant.
- If the payment is approved, the Acquiring Bank requests the funds from the Issuing Bank. The Payment gateway receives these requested funds in their account and settles them with the merchant’s acquiring bank according to the settlement cycle.
Frequently Asked Questions on Whitelabel payment gateway
What Is The Difference Between A Payment Aggregator And A Payment Gateway?
Most people often synonymise a payment aggregator with a payment gateway. However, the two are quite different in their role and functionality. A payment aggregator offers the customers various payment options so a merchant does not need a separate integration system. On the other hand, a payment gateway is just the underlying technology that makes payment acceptance possible.
What Is A 2D and 3D Payment Gateway?
A 2D payment gateway is the one where two parties are involved. For instance, enabling a direct transaction between a merchant and a customer. Meanwhile, 3D payment gateway is the one where three parties are involved. For example, a customer, merchant, and an interoperable payment environment (server, types of cards, etc.).
What Is A Whitelabel Payment Gateway’s Pricing?
Different whitelabel payment gateways have different pricing models. The final price would ideally depend on the types of services you plan to select and avail from the gateway service provider. Get in touch with the payment gateway to the exact pricing.
